SANGEET LODHA,J. - (1.) This arbitration application has been filed by the applicant under section 11(6) of the Arbitration and Conciliation Act, 1996 ("the Act") for appointment of Sole Arbitrator on account of the respondents failing in appointing the Arbitrator in terms of the arbitration clause in the contract.
(2.) The applicant company, a sick industrial unit, was awarded contract by the respondent Rajasthan State Mines and Minerals Limited (RSMML) of the work of 'Design, Engineering, Supply, Fabrication, Erection, Testing and Commissioning of Crushing and Screening Plant' at Sanu Lime Stone Project of RSMML. The contract value of the work was Rs. 11,88,00,000/-. The work was to be completed within a period of 16 months from the date of issue of Telex of Intent i.e. 14.8.92 and accordingly, the date of completion of the work was 13.12.93. The parties entered into agreement on 27.2.93. The clause 90 of General Conditions of Contract deals with the settlement of the dispute arising between the parties, which reads as under: "All disputes and differences arising out of or in any way touching this contract whatsoever, except as to any matter, the decision of which is expressly vested in any Authority in this contract, shall be referred to Sole Arbitrator of the person appointed by Managing Director of the Company. The Sole Arbitrator shall give a reasoned, speaking detailed award and the same shall be final and binding on the parties to this contract."
(3.) The execution of the work was delayed and therefore, on 16.10.95, the applicant company made an application for extension of time without penalty, mentioning therein the detailed reasons for the delay. On 23.11.94 RSMML approved the extension of time upto 30.11.95 without prejudice to its rights in accordance with the terms and conditions of the contract entered into between the parties. The applicant company was requested to get extended the validity of bank guarantee given for Mobilization Advance upto 31.8.96 as also the bank guarantee given for security deposits upto 30.11.97. That apart, the applicant company had requested to assign the entire insurance claim lodged by it with the United India Insurance Company in favour of the RSMML as per the terms and conditions of the contract. The work could be completed even within the extended period. Further extension was granted upto 31.3.97 by the RSMML vide letter dated 10.3.97 with clear stipulation that no further extension will be granted and if the contractual obligations are completed, the further course of action shall be taken as per the provisions of the contract. The applicant company sought further extension of time which was refused vide communication dated 22/24.4.97 and the RSMML undertook the completion of the balance work at the cost and risk of the applicant company. The RSMML invoked the bank guarantee for Rs. 1,18,80,000 which was released by the Bank of Baroda on 20.8.97. The another bank guarantee against the mobilization advance was returned by the RSMML to the applicant company. The final bill was submitted on 19.7.98, which was later withdrawn by the applicant company vide letter dated 27.7.98.;