I.P. SINGH CONSTRUCTION COMPANY Vs. RAJASTHAN HOUSING BOARD
LAWS(RAJ)-2014-8-4
HIGH COURT OF RAJASTHAN
Decided on August 07,2014

I.P. Singh Construction Company Appellant
VERSUS
RAJASTHAN HOUSING BOARD Respondents

JUDGEMENT

Govind Mathur, J. - (1.) THIS application for appointment of an arbitrator is preferred by the applicant partnership firm, a contractor of "AA" class. The partnership firm was having work order for construction of EWS 128 multistorey G+3 houses in Sector -9, Kudi Bhagtasani Housing Board, Jodhpur and the agreement in this regard was executed on 20.4.2011 bearing numbers 2/2011 -12. The estimated cost of the work assessed under the work order was Rs. 4,18,95,981.61. The work assigned was to be commenced from 19.4.2011 with a condition to complete the same on or before 28.7.2012.
(2.) RESPONDENT Rajasthan Housing Board supplied lay out plan to the applicant but before commencement of the work the Deputy Commissioner (Housing) of the Rajasthan Housing Board by letter dated 25.4.2011 directed not to proceed with the work order. The restrainment so made was revoked on 17.3.2012. The allegation of the applicant that despite the order of restrainment the work plan was not rescheduled and that caused delay in completion of the project. According to the applicant the respondent unilaterally invoked clauses 2 and 3 of the agreement on 6.6.2013 to get the work done by some other contractor at the risk and cost of the applicant. Looking to the action of the respondent Housing Board the applicant by a notice dated 9.6.2013 made a demand for appointment of an independent arbitrator. The notice dated 9.6.2013 was responded by the Housing Board through its counsel with a stand that if the applicant wants to take resort to arbitration clause, that may be taken as per clause 23 of the agreement by depositing non -refundable prescribed fee.
(3.) IN the instant application the submission of the applicant that as a matter of fact clause 23 of the agreement is absolutely non -workable in view of the fact that the members therein are officers of the Government of Rajasthan and those are having no concern with the Rajasthan Housing Board. It is further submitted that as a matter of fact the clause 23 in the instant agreement has been copied from the model agreement of the Government of Rajasthan and that is absolutely non -functional so far as the Rajasthan Housing Board is concerned.;


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