CENTRAL ORGANISATION FOR RAILWAY ELECTRIFICATION Vs. ECI-SPIC-SMO-MCML (JV) A JOINT VENTURE COMPANY
LAWS(SC)-2019-12-57
SUPREME COURT OF INDIA
Decided on
December 17,2019
Central Organisation For Railway Electrification
Appellant
VERSUS
Eci-Spic-Smo-Mcml (Jv) A Joint Venture Company
Respondents
Referred Judgements :-
UNION OF INDIA V. PRADEEP VINOD CONSTRUCTION COMPANY [REFERRED TO]UNION OF INDIA V. PARMAR CONSTRUCTION COMPANY [REFERRED TO]
DATAR SWITCHGEARS LIMITED VS. TATA FINANCE LIMITED [REFERRED TO]
UNION OF INDIA VS. M P GUPTA [REFERRED TO]
PUNJ LIOYED LTD VS. PETRONET MHB LTD [REFERRED TO]
UNION OF INDIA VS. V S ENGINEERING P LTD [REFERRED TO]
UNION OF INDIA VS. BHARAT BATTERY MANUFACTURING CO P LTD [REFERRED TO]
M/S. VOESTALPINE SCHIENEN GMBH VS. DELHI METRO RAIL CORPORATION LTD. [REFERRED TO]
TRF LTD. VS. ENERGO ENGINEERING PROJECTS LTD. [REFERRED TO]
BHARAT BROADBAND NETWORK LIMITED VS. UNITED TELECOMS LIMITED [REFERRED TO]
Cited Judgements :-
TRIBHUWAN ARORA VS. GENERAL MANAGER, EAST CENTRAL RAILWAY [LAWS(PAT)-2023-6-16] [REFERRED TO]PSP PROJECTS LIMITED VS. BHIWANDI NIZAMPUR CITY MUNICIPAL CORP. [LAWS(BOM)-2023-1-98] [REFERRED TO]
AMAZING INDIA CONTRACTORS PVT. LTD VS. AIRPORT AUTHORITY OF INDIA [LAWS(CAL)-2023-6-87] [REFERRED TO]
JSW STEEL LIMITED VS. SOUTH WESTERN RAILWAY [LAWS(SC)-2022-8-134] [REFERRED TO]
BHAGWAN SINGH VS. MANAGING DIRECTOR [LAWS(PAT)-2022-8-40] [REFERRED TO]
CENTEX (INDIA) ENGINEERS (P) LIMITED VS. EXECUTIVE ENGINEER/BRL, EASTERN RAILWAY, SEALDAH [LAWS(CAL)-2024-10-1] [REFERRED TO]
BHAGWATI CONSTRUCTION VS. WESTERN RAILWAY [LAWS(GJH)-2022-2-951] [REFERRED TO]
RPN ENGINEERS CHENNAI PRIVATE LIMITED VS. UNION OF INDIA [LAWS(MAD)-2022-8-139] [REFERRED TO]
UNION OF INDIA VS. PUSHKAR PAINT INDUSTRIES [LAWS(DLH)-2023-2-31] [REFERRED TO]
STEELMAN TELECOM LIMITED VS. POWER GRID CORPORATION OF INDIA LIMITED [LAWS(DLH)-2023-8-106] [REFERRED TO]
INDIA POWER CORPORATION LTD VS. EASTERN RAILWAY [LAWS(CAL)-2022-3-60] [REFERRED TO]
M/S. MEHROTRA BUILDCON PVT. LTD. VS. SOUTH EASTERN RAILWAY [LAWS(CAL)-2023-12-12] [REFERRED TO]
VIVAAN SOLAR PVT. LTD. VS. NORTHERN CENTRAL RAILWAYS [LAWS(DLH)-2021-9-42] [REFERRED TO]
S.N.NAIK VS. UNION OF INDIA [LAWS(BOM)-2024-4-128] [REFERRED TO]
SRICO PROJECTS PVT. LTD VS. CENTRAL RAILSIDE WAREHOUSE CO. LTD. [LAWS(DLH)-2022-1-36] [REFERRED TO]
GLOCK ASIA-PACIFIC LTD VS. UNION OF INDIA [LAWS(SC)-2023-5-101] [REFERRED TO]
M.N.TRAPASIA VS. DIVISIONAL RAILWAY MANAGER [LAWS(GJH)-2022-2-1491] [REFERRED TO]
CENTURY METALS RECYLING LIMITED VS. M/S. URGO CAPITAL LIMITED [LAWS(CAL)-2021-9-16] [REFERRED TO]
M/S. TECHNO COMPACT BUILDERS VS. RAILTEL CORPORATION OF INDIA LIMITED [LAWS(DLH)-2024-3-99] [REFERRED TO]
JUDGEMENT
R.BANUMATHI,J. -
(1.)Leave granted.
(2.)These appeals have been preferred against the impugned orders dated 03.01.2019 and 29.03.2019 passed by the High Court of Judicature at Allahabad in Arbitration Application No.151 of 2018 in and by which the High Court rejected the contention of the appellant that the arbitrator is to be appointed as per General Conditions 64 (3)(a)(ii) and 64 (3)(b) of the Contract and appointed Shri Justice Rajesh Dayal Khare as the sole arbitrator for resolvingthe dispute between the parties.
(3.)The appellant awarded work contract of Rs.165,67,98,570/- to the respondent-Company by an agreement dated 20.09.2010 which contains the arbitration clause. Subsequently, after coming into force of Arbitration and Conciliation (Amendment) Act, 2015 (w.e.f. 23.10.2015), the Government of India, Ministry of Railways made a modification to Clause 64 of the General Conditions of Contract and issued a notification dated 16.11.2016 for implementation of modification. The modified Clause 64(3)(a)(ii) (where applicability of Section 12(5) has been waived off) inter alia provided that in cases where the total value of all claims exceeds Rs. 1 crore, the Arbitral Tribunal shall consist of a panel of three gazetted Railway Officers not below JA (Junior Administrative) Grade or two Railway Gazetted Officers not below JA Grade and a retired Railway Officer, retired not below the rank of Senior Administrative (SA) Grade officer as arbitrators. The procedure for constitution of the Arbitral Tribunal is provided thereon. Clause 64(3)(b) deals with the appointment of arbitrator where applicability of Section 12(5) of the Arbitration and Conciliation Act has not been waived off. Clause 64(3)(b) stipulates that the Arbitral Tribunal shall consist of a panel of three retired railway officers not below the rank of Senior Administrative Officer as the arbitrators as per the procedure indicated thereon.
(2.)These appeals have been preferred against the impugned orders dated 03.01.2019 and 29.03.2019 passed by the High Court of Judicature at Allahabad in Arbitration Application No.151 of 2018 in and by which the High Court rejected the contention of the appellant that the arbitrator is to be appointed as per General Conditions 64 (3)(a)(ii) and 64 (3)(b) of the Contract and appointed Shri Justice Rajesh Dayal Khare as the sole arbitrator for resolvingthe dispute between the parties.
(3.)The appellant awarded work contract of Rs.165,67,98,570/- to the respondent-Company by an agreement dated 20.09.2010 which contains the arbitration clause. Subsequently, after coming into force of Arbitration and Conciliation (Amendment) Act, 2015 (w.e.f. 23.10.2015), the Government of India, Ministry of Railways made a modification to Clause 64 of the General Conditions of Contract and issued a notification dated 16.11.2016 for implementation of modification. The modified Clause 64(3)(a)(ii) (where applicability of Section 12(5) has been waived off) inter alia provided that in cases where the total value of all claims exceeds Rs. 1 crore, the Arbitral Tribunal shall consist of a panel of three gazetted Railway Officers not below JA (Junior Administrative) Grade or two Railway Gazetted Officers not below JA Grade and a retired Railway Officer, retired not below the rank of Senior Administrative (SA) Grade officer as arbitrators. The procedure for constitution of the Arbitral Tribunal is provided thereon. Clause 64(3)(b) deals with the appointment of arbitrator where applicability of Section 12(5) of the Arbitration and Conciliation Act has not been waived off. Clause 64(3)(b) stipulates that the Arbitral Tribunal shall consist of a panel of three retired railway officers not below the rank of Senior Administrative Officer as the arbitrators as per the procedure indicated thereon.
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