RAIL INDIA TECHNICAL AND ECONOMIC SERVICE LTD Vs. VIJETA CONSTRUCTIONS LTD RANCHI
LAWS(JHAR)-2011-7-12
HIGH COURT OF JHARKHAND
Decided on July 27,2011

RAIL INDIA TECHNICAL AND ECONOMIC SERVICE LIMITED, NEW DELHI Appellant
VERSUS
VIJETA CONSTRUCTIONS LIMITED, RANCHI Respondents

JUDGEMENT

- (1.) This Civil Revision is directed against the judgment dated 18.09.2010 passed by Subordinate Judge, 1st Dhanbad in Miscellaneous Case No. 22 of 1996, whereby he allowed the petition of opposite party and directed both the parties for suggesting names of their respective arbitrators, so that the Court can appoint them as arbitrator as per sub-section (2) of Section 8 of the Arbitration Act. 1940.
(2.) It appears that opposite party No. 1 had entered into an agreement with petitioner for execution of following work: Earthwork in Railway formation in embankment with mechanical compaction in filling/cutting including blanketing, turfing and boulder pitching etc. and construction of retaining wall near Khanudih Railway Station for Madhuban Washery Siding, Madhuban, Bihar, Section-III (From Km 2/425 to Km 2/940).
(3.) It is relevant to mention here that the said agreement stipulates that if there is any dispute between the parties for construction of operation of the contract or the respective rights and liabilities of the parties, the said dispute or differences be referred for arbitration. Clause 63 (4)(b) of the said agreement, deals with the provision for appointment of arbitrator which runs as follows: (4) (b) For the purpose of appointing two arbitrators as referred to in sub-clause (a)(ii) above, the RITES will send a panel of more than three names of RITES Officers of one or more departments of the RITES to the contractor, who will be asked to suggest to the General Manager one name out of the list for appointment as the contractor's nominee. The General Manager, while so appointing the contractor's nominee, will also appoint a second arbitrator as the RITES nominee either from the panel or from outside the panel, ensuring that one of the two arbitrators so nominated is invariably from the Accounts Department. Before entering upon the reference the two Arbitrators shall nominate an umpire who shall be a RITES Officer to whom the case will be referred to in the event of any difference between the two Arbitrators. Officers of the joint General Manager grade of the Accounts Department of the RITES shall be considered as of equal status to the officers in the General Manager grade of other departments of RITES for the purpose of appointment as arbitrators.;


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