JUDGEMENT
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(1.) The present C.M.P has been filed on behalf of M/s Bharat Coking Coal Limited and its officers seeking modification/clarification in the relevant
paragraphs of the judgment dated 17.07.2018 passed by this Court in W.P.(C)
No. 3142/2018 wherein it has been recorded that the dispute in question is to
be settled through means of arbitration.
(2.) Mr. A. K. Mehta, learned counsel appearing on behalf of the petitioners [the respondents in W.P.(C) No. 3142/2018], refers to Paragraph 4 of the
judgment dated 17.07.2018 passed by this Court in W.P.(C) No. 3142/2018 and
submits that the said paragraph contains the submission made on behalf of the
respondents of the aforesaid writ petition. In the 4th line of the said paragraph,
it has been recorded that an alternative mode of settlement has been provided
through means of arbitration. In fact, none of the clauses of the Conditions of
Contract contains an alternative mode of settlement through arbitration.
Learned counsel for the petitioners further refers to Paragraph 7 of the
judgment dated 17.07.2018 passed by this Court in W.P.(C) No. 3142/2018 and
submits that the said paragraph is the operative part of the said judgment
wherein in the last sentence, it has inadvertently been observed by this Court
that so far as the challenge to the legality of the impugned notices is concerned,
the said ground can also be agitated before the arbitrator.
(3.) On perusal of the relevant clauses of the Conditions of Contract, it appears that only two clauses speak of the settlement of the dispute between
the contractor and the department. Clause-10 provides for carrying out the part
work at the risk and cost of the contractor. Clause-10.1 provides that if the
progress of the work or of any portion of the work is unsatisfactory, the
Engineer-in-Charge, after giving the contractor 15 days' notice in writing,
without cancelling or terminating the contract, shall be entitled to employ
another Agency for executing the job or to carry out the work departmentally or
contractually through tendering/limited tendering process, either wholly or
partly, debiting the contractor with cost involved in engaging another Agency or
with the cost of labour and the prices of materials, as the case may be. Another
relevant clause is Clause-14 which provides for settlement of disputes between
the contractor and the department at two different stages. The said clause
would suggest that the dispute is first to be settled with the contractor
departmentally and if differences still persist, the settlement of the dispute shall
be resolved in the following manner: Disputes relating to the commercial
contacts with Central Public Sector Enterprises/Govt. Departments (except
Railways, Income Tax, Custom & excise duties) / State Public Sector Enterprises
shall be referred by either party for Arbitration to the PMA (Permanent
Machinery of Arbitration) in the Department of Public Enterprises. In case of the
parties other than the Government Agencies, the redressal of the dispute is to
be sought in the Court of law. It is thus submitted by learned counsel for the
petitioner that none of the clauses of the Conditions of Contract mentions about
redressal of the dispute through means of arbitration, except in the cases of
commercial contracts with Central Public Sector Enterprises/certain Government
Departments/State Public Sector Enterprises and as such the relevant
paragraphs of the judgment dated 17.07.2018 passed by this Court in W.P.(C)
No. 3142/2018 may accordingly be modified.;
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