Anil Kshetarpal,J. - (1.) By this order, two petitions under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the 1996 Act"), arising between the same parties with respect to identical disputes, shall stand decided. Learned counsel for the parties have also submitted that these two petitions can be disposed of by a common order.
(2.) The agreements containing arbitration clause are not in dispute. "2.21.Arbitration Clause: 2.21.1(a)(i) In the event of any dispute or difference of opinion between the Rail Coach Factory administration and Contractor(s) as to respective right and obligation of the parties hereunder or of onus to the true intent and meaning of these present and of any articles of conditions thereof such dispute of difference of opinion (except the matter regarding which the decision has been specifically provided for in the terms of the contract) shall be referred to the sole arbitration. Arbitrator shall be a person possessing qualification aid down in Para 2.21.1(a)(ii) and shall be appointed by the General Manager in the case of contracts entered into by Rail Coach Factory, Kapurthala. 2.21.1(a)(ii) Qualification for appointment as Sole Arbitrator: (a) Retired Railway Officer not below SAG level 3 years after his date of retirement. (b) Age of Arbitrator at the time of appointment shall not exceed 70 years. 2.21.1(a)(iii) An Arbitrator may be appointed notwithstanding the total no. of arbitration cases in which he has been appointed in the past. Retire Railway officer being appointed as arbitrator, however, will not be one of those who had an opportunity to deal with the matters to which the contract relates or who in the course of their duties as railway servant have expressed views on all or any of the matters under dispute or difference. 2.21.1(a)(iv) The award of the Arbitrator shall be final and binding on the parties to this contract. 2.21.1(b) In the event of the Arbitrator dying, neglecting or refusing to act or resigning or being unable to act for any reason, or his award being set aside by the court for any reason, it shall be lawful for the authority appointing the arbitrator to appoint another arbitrator in place of the outgoing arbitrator ion the manner aforesaid. 2.21.1(c) It is further a term of this contract that no person other than the person appointed by the authority as aforesaid should act as Arbitrator and that if for any reason that is not possible, the matter is not to be referred to arbitration at all. 2.21.1(d)(i) The cost of arbitration shall be borne by the concerned parties in terms of section 31(A) of Arbitration and Conciliation Act, 1996, as amended by Arbitration and Conciliation (Amendment) Act, 2015. The cost shall inter-alia include fee payable to the Arbitrator would be governed by instruction issued on the subject by Railway Board from time to time irrespective of the fact whether the Arbitrator is appointed by the Railway administration under this clause or by any court of law unless specifically directed by Hon'ble court otherwise on the matter. 2.21.1(d)(ii) Arbitrator shall be entitled to 50 percent extra fee, if award is made within 6 months in terms of provision contained in section 29(A) (2) of the Arbitration and Conciliation Act, 1996 as amended by Arbitration and Conciliation (Amendment) Act, 2015. Besides above, Arbitrator shall also be entitled for this extra fee, in cases, where Fast Track Procedure in terms of section 29(B) of the Arbitration and Conciliation (Amendment) Act, 2015 is followed. 2.21.1(e) Subject as aforesaid, the Arbitration and Conciliation (Amendment) Act, 2015 and the fulrs there under and any statutory modifications thereof for the time being in force shall be deemed to apply to the arbitration proceedings under this clause. 2.21.1(f) The venue of arbitration shall be the place from which the acceptance note is issued or such other place as the arbitrator at his discretion may determine in terms of section 20 of the Arbitration and Conciliation Act, 1996, as amended by Arbitration and Conciliation (Amendment) Act, 2015. 2.21.1(g) In this clause the authority, to appoint the arbitrator includes, if there be no such authority, the office who is for the time being discharging the functions of the authority, whether in addition to other functions of otherwise. 2.21.1(h) It is further a term of this contract that where the arbitral award is for the payment of money, no interest shall be payable on whole or any part of the money for any period till the date on which the award is made in terms of Section 31(7)(a) of the Arbitration and Conciliation Act, 1996, as amended by Arbitration and Conciliation (Amendment) Act, 2015. 2.21.1. Pre-Arbitration Meetings: To avoid the cumbersome and time consuming process of arbitration, pre-arbitration meeting with the contractors can be held for settlement of claim of contractors. However such meeting/discussions shall be without prejudice to the Railway's interest in the matter. If an understanding is reached between the administration and the contractor, discussions will be recorded indicating the claim admitted to the extent and the claim not admitted and the contractor's no claim certificate taken on that basis. In either case subsequent action shall be proceeded and the residual disputes if any, shall be referred to arbitration in terms of clause/Para 2.21.1 above."
(3.) Some facts are required to be noticed. The petitioner is a manufacturer and supplier of laminates. The respondents issued three purchase orders on 15.03.2018, 06.09.2018 and 03.11.2019 to the petitioner for supply HPL sheets. The respondents claim that the HPL sheets as supplied by the petitioner do not conform to the specifications. It is admitted that with respect to first supply order, the HPL sheets have already been used and payment thereof has also been released.;