DAYA ENGINEERING WORKS SLEEPERS LTD Vs. UNION OF INDIA
LAWS(RAJ)-2009-7-47
HIGH COURT OF RAJASTHAN
Decided on July 28,2009

DAYA ENGINEERING WORKS (SLEEPERS) LTD. Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

TATIA, J. - (1.) Heard learned counsel for the parties.
(2.) The applicant-company registered under the Companies Act and having its registered office at 187, AP Colony, Gaya (Bihar) submitted its offer in response to the notice inviting tender issued by the respondents which is tender No. CS-156/05. The tender was issued in the month of Jan., 2005. The petitioner's offer was accepted by the respondents for manufacture and supply of PMC Sleepers against the said tender and a formal contract was executed between the parties and copy of which has been placed on record as Annex. 2 which is dated 12th Dec, 2005. As per the petitioner there was a term in the contract that respondents shall supply the cement for manufacturing of PMC Sleepers and as per the petitioner, the respondent failed to discharge their duties and did not supply the cement for manufacturing of the PMC Sleepers. According to the petitioner it was a condition precedent for supply of manufactured PMC Sleepers as the Sleepers could have been manufactured only if the petitioner would have been supplied with the cement by the respondents. Because of that difficulty according to the petitioner, the petitioner could not proceed with the speed with which it could have proceeded if the respondents would have supplied the cement to the petitioner. There was correspondence between the parties, but according to petitioner, the respondent ultimately sent a letter dated 25th Oct., 1997 whereby they opted the clause of 30% enhancement in supply of PMC Sleepers as per agreement and according to the petitioner that enhancement clause was opted just 3 months before the conclusion of the contract term.
(3.) Be it as it may be, the detail facts are not necessary, but due to dispute between the parties, the petitioner vide letter dated 6th Dec, 2008 called upon the respondents that they have already made several request with respect to above disputes but nothing has been done by the respondents and now the petitioner is intended to invoke the arbitration clause No. 2900 of the general conditions of the contract. The petitioner requested that this letter may be treated as request to the General Manager-respondent No. 3 to appoint sole arbitrator. Copy of the said request letter is placed on record as Annex. 9. The petitioner when found no positive response from the respondents then the petitioner has approached this Court for appointment of the arbitrator with the ground that respondents failed to appoint the arbitrator within 30 days from the date of receipt of the letter requesting appointment of the arbitrator.;


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