A.K. Dasadhikari, J. - (1.) The Petitioner National Buildings Construction Limited a Government of India enterprise, a company duly incorporated under the Indian Companies Act, 1956 has filed this application under Sec. 34 of the Arbitration and Conciliation Act, 1996 challenging the award passed by the learned Arbitrator on 3rd July, 2008.
(2.) It is contended by the Petitioner that a notice inviting tender for construction of 117 numbers of staff quarters, boundary wall (civil works only) for Employees' Provident Fund Organisation at Jalpaiguri was issued and in the competitive tender the Respondent herein, Sri Joydeep Paul stood lowest tenderer. The Letter of Acceptance was issued to said Joydeep Paul, the Respondent herein vide memo dated 15th January, 1996. A contract in writing was executed by and between the Petitioner and the Respondent the said contract contains various rights and obligations of the parties. Some of such salient features of the said contract are noted hereunder: I) Estimated amount put to tender.. Rs. 150 lacs. II) Earnest money.. Rs.50,000/ -. III) Date of submission of tender.. 2.1.1996. IV) Date of opening of tender.. 2.1.1996 at 3 -30 P.M. V) Time for completion.. 15 months. VI) Date of issuance of letter of acceptance.. 15.1.1996. VII) Tendered amount ... Rs.1,47,76,090/ - VII) Defect liability period: 6 calendar months from the date of handing over of the work to the owner.
(3.) There was an agreement in between the parties to appoint arbitrator to settle all disputes, differences or questions arising out of or in connection with the said contract. The clause relating to appoint arbitrator reads as follows: All disputes, differences or questions arising out of or in connection with this contract between the contractor and the corporation except those disputes or differences or questions where the decision of the particular authority is stated to be final shall be referred to sole Arbitrator or an Engineer of the corporation ( not below the rank of the Project Manager ) to be appointed by the Chairman -Cum -Managing Director of the corporation where decision shall be final and binding on the parties. If the above mentioned arbitrator resigns, above mentioned appointing authority shall appoint another arbitrator.;