MOHAMMAD RAFIQ,J. - (1.) This application under Sections 10 and 11 of the Arbitration and Conciliation Act, 1996 has been filed by applicant Girraj Ji Stone Crushers Private Limited through its Director Shri Sunil Kumar Agrawal against non-applicants, namely, Union of India through General Manager, North Western Railway, and its Deputy Chief Engineer (Construction-III), praying for appointment of an independent arbitral tribunal, to resolve the dispute between the parties.
(2.) Facts, as stated in the memo of application, are that the applicant is an approved contractor by the railway administration and has been working as contractor satisfactorily for last several years. Applicant was awarded work of supply and stacking of 50mm gauge machine crushed stone ballast as per railway specification between Rai Bha-Bichpuri Station in connection with Agra fort-Bandikui Gauge conversion project, vide tender dated 21.07.2003. An agreement in this regard was signed between the parties on 04.12.2003. Clauses 63 and 64 of General Conditions of Contract of the agreement have been reproduced in the application, which provides for the manner of resolution of dispute. Clause 64 in particular provides that in case of any dispute or difference between the parties, save with 'excepted matters', referred to in Clause 63 of the conditions, the contractor after 90 days but within 180 days of presenting his final claim on disputed matters, shall demand in writing that the dispute or difference be referred to arbitration. If he fails to do so, then it shall be deemed to have waived its claim and the Railway shall be discharged of its liability. Clause 64(3)(a)(i) provides that a sole Arbitrator, who shall be the General Manager or a Gazetted Railway Officer, nominated by him in that behalf in cases where the claim in question is below Rs.5,00,000/- and in cases where the issues involved are not of a complicated nature, the General Manager shall be the Sole Judge to decide whether or not the issue involved are of a complicated nature. Clause 64(3)(a)(ii) provides for appointment of two arbitrators, who shall be gazetted railway officers of equal status in the manner laid in Clause 64(3)(b) for all claims of Rs.5,00,000/- and above.
(3.) According to the applicant, the estimated costs of the work was Rs.74,72,000/- and quantity required to be supplied was estimated 16000 cum. The period of the work initially fixed was from 12.10.2003 to 11.05.2004. The applicant was asked to supply additional quantity of ballast as there was provision in the General Conditions of Contract and in the agreement to supply additional quantity of 25% of actual quantity. The supplementary work order was issued in this regard. The applicant thus supplied total quantity of 19488.91 cum ballast.;