Hemant Gupta, J. - (1.) PRESENT Petition is for appointment of an Arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 (for short the 'Act '). The Petitioner was given contract for Outdoor Advertisements at Chandigarh Railway Station by the Northern Railways vide letter dated 30.3.2007 being the highest bidder @ Rs. 2.62 crore per annum. The agreement dated 1.5.2007 executed in pursuance of such allotment of work between the parties contain Arbitration Clause which read as under: In the event of any question, dispute or difference of opinion arising out this agreement or any special conditions or contract or in -connection with this agreement, the same shall be referred to the sole Arbitration of a Gazetted Railway Officer appointed by the General Manager. The Gazetted Railway Officer appointed as arbitrator, however will not be one of those who had an opportunity to deal with the matter to which the contract relates or who in the course of their duties as Railway servants have expressed views on all or any of the aspects or the matter under dispute or difference the award of the arbitrator shall be final and binding on the parties to this contract.
(2.) IN reply, on behalf of Respondent, it is submitted that in February 2008, in order to improve lighting in the parking area of Railway Station, the Railway Administration replaced the existing 18 small lamp poles with two high mast post. It is also pointed out that an amount of Rs. 2,05,82,446/ -is payable by the Petitioner as license fee as on 1.12.2008. From the pleadings of the parties, it is apparent that the dispute exists between the parties arising out of the agreement dated 1.5.2007. Learned Counsel for the Respondents has argued that in terms of Section 42 of the Act, the Gazetted Railway Officer is to act as an Arbitrator to be appointed by General Manager. Therefore, the General Manager be directed to appoint an Arbitrator in terms of the Agreement.
(3.) I do not find any merit in the said argument raised by learned Counsel for Respondents. Once, the Petitioner has raised a dispute vide the communication dated 26.6.2009 (Annexure P -24), the Respondents were bound to appoint an Arbitrator. Having failed to appoint an Arbitrator within a period of 30 days of such request and before the Petitioner approached this Court for appointment of an Arbitrator on 17.11.2009, it is not fair and reasonable for Respondents to raise an argument that General Manager be directed to appoint an Arbitrator.;