MOHAMMAD RAFIQ,J. - (1.) This application under Section 11(6) and section 15 of the Arbitration and Conciliation Act, 1996, has been filed by petitioner M/s. Rajendra Singh Bhamboo Infra Pvt. Ltd., praying for appointment of an independent sole Arbitrator to adjudicate the disputes and differences between the petitioner and the respondents, arising out of an agreement dated 22.03.2014. The petitioner is a company registered under the provisions of the Companies Act, 1956 having its registered office at Jaipur. The respondents issued a tender for urgent repair work of Gurgaon-Kotputli-Jaipur Section of NH-8 from Ch.107.100 to Ch.273.00 in the State of Rajasthan. The petitioner submitted a bid of Rs. 17,49,05,881/-, which was accepted by the respondents and accordingly, vide letter No. 3970 dated 24.02.2014, the respondent No. 1 accorded approval and awarded the work in favour of the petitioner. The Project Director issued consequential letter of approval dated 25.02.2014. An agreement was entered into between the petitioner and respondent National Highways Authority of India to deal with the urgent repair work of Gurgaon-Kotputli-Jaipur Section of NH-8 from Ch.107.100 to Ch.273.00 in the State of Rajasthan.
(2.) The petitioner deposited a bid security amount of Rs. 29.60 lakhs at the time of bidding and further as per the terms of the said agreement, more particularly term 34 of the Instructions to Bidders, the petitioner deposited a performance security in the form of a bank guarantee to the extent of 5% of the bid amount, being Rs. 87,45,300/-.
(3.) Mr. Anuroop Singhi, learned counsel for the petitioner, submitted that the petitioner proceeded to carry out the repair work of the NH-8 assigned to it, as per the agreement executed, with utmost sincerity and diligence. The petitioner, vide letter dated 10.04.2014, informed the respondent regarding the difficulties faced by the petitioner in getting the repair work, one of which was stagnate puddle of water on the national highway, which was followed by further letters dated 08.05.2014, 02.06.2014 and 30.06.2014. Despite repeated communications, no heed was paid by the respondent to any of the aforesaid letters and nothing was done to remove the difficulties faced by the petitioner. In spite of various hurdles including various Force Majeure events, petitioner completed the assigned work, which is evident from the letter dated 12.01.2015 written by Aarvee Associate-an independent Engineer for six lane of Gurgaon-Kotputli-Jaipur, Section of NH-8, to the Project Director, NHAI, Jaipur. An Independent Engineer certified the completion of work by 13.08.2014. Learned counsel therefore argued that the said letter dated 12.01.2015 was to be considered as "Completion Certificate" in terms of Clause 55 of the Conditions of the Contract. Despite completion of complete work even after the expiry of 'defect liability period' on 12.08.2015 and in spite of good quality work done, the respondents, for inappropriate and arbitrary reasons, failed to release the performance bank guarantee and the petitioner was directed to renew and extend the said bank guarantee. The petitioner, by letter dated 12.10.2015, explained to the respondents the nuances of the work completed and the difficulty faced by it due to substandard work made available to it and also the problem faced as a result of the damage to the Kotputli flyover. It was again stated in their letter dated 12.10.2015 that it completed the work in the month of August, 2014.;