JUDGEMENT
ASHWANI KUMAR MISHRA,J. -
(1.) Applicant, a Company registered under the Indian Companies Act, 1956, seeks appointment of Arbitrator, in this petition, filed under section 11(4) of the Arbitration and Conciliation Act, 1996
(hereinafter referred to as 'the Act').
(2.) Shorn of unnecessary details, facts relevant for our purposes are that Central Public Works Department, Varanasi Region, Varanasi, through its Executive Engineer, respondent no.2,
(hereinafter referred to as the 'Department') awarded a contract for civil and electrical works in
favour of M/s Era Infra Engineering Ltd., New Delhi, respondent no.1, (hereinafter referred to as
'Principal Contractor' ) on 9.10.2009, to be carried at BHU Campus, Varanasi. A work agreement
was entered into between Department and the 'Principal Contractor'. This agreement permitted
'Principal Contractor' to engage an 'Electrical Contractor', as a 'Sub-contractor', for carrying out
electrical works.
(3.) The applicant being an approved class 'A' CPWD contractor for electrical works was engaged as 'Electrical Contractor'. Three work orders were issued to it on 24.6.2011, by the 'Principal
Contractor', which contained following arbitration and jurisdiction clauses:-
"2.6-Arbitration
a Any disputes arising out of this Contract shall be referred to the sole arbitrator i.e. Managing Director of Era Infra Engineering Ltd. who may further appoint any person not below the rank of General Manager and there shall be no objection if arbitrator so appointed is an employee of Era Infra Engineering Ltd.
In case the Arbitrator to who the matter is originally referred get transferred or vacates his office or unable to act for any reason as aforesaid at the time of such transfer, vacation of office or inability to act, Managing Director, EIFL shall appoint another person to act as Sole Arbitrator in accordance with the provisions of Arbitration and Conciliation Act, 1996. 2.7-Jurisdiction
a This Work Order is governed by the Indian Laws for time being in force. The court of Delhi alone shall have exclusive jurisdiction in all matters arising out of this Work Order." ;
Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.