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Delhi High Court - Orders

R.S.Khanna And Sons vs Rites Ltd, Through Its Executive ... on 12 April, 2023

Author: Chandra Dhari Singh

Bench: Chandra Dhari Singh

                 $~4
                 *        IN THE HIGH COURT OF DELHI AT NEW DELHI
                 +        ARB.P. 257/2023
                          R.S.KHANNA AND SONS                                    ..... Petitioner
                                             Through:     Appearance not given

                                             versus

                          RITES LTD, THROUGH ITS EXECUTIVE DIRECTOR & ANR.
                                                                             ..... Respondents
                                             Through:     Mr. G. S. Chaturvedi and Mr. Virat
                                                          Singh, Advocates along with Anil
                                                          Kumar Singh, Engineer (RITES) for
                                                          R-1
                                                          Mr. Anurag Mathur, Advocate for R-
                                                          2

                          CORAM:
                          HON'BLE MR. JUSTICE CHANDRA DHARI SINGH
                                             ORDER

% 12.04.2023

1. The instant petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter "the Act") has been filed on behalf of the petitioner seeking the following reliefs:

"a. Appoint an independent Sole Arbitrator by this Hon'ble court of its own and refer the claims mention in Para C of the petition;
b. Direct the Respondents to file the original work order/ arbitration Agreement;
c. pass such further order(s)as this Hon'ble Court deem fit and proper to the facts and circumstances of the case."
Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:13.04.2023 20:52:27

2. Learned counsel for the petitioner submitted that the petitioner is government contractor engaged in the business of construction. It is submitted that the respondent no. 1 is an enterprise engaged in undertaking project consultancy and execution of construction work for various government organization, authorities and institutions etc.

3. It is submitted that the respondent no. 2 invited tenders for construction of New Academic Block and renovation of Academic/ Administrative/Laboratory/Library Block at Ramjas College, Delhi where the petitioner was a successful bidder.

4. It is submitted that the parties entered into a contract dated 29th April, 2016 through Agreement No. RITES/CP/TC/Ramjas/Auditorium/2015 for a contract value of Rs. 2,46,34,549.41/- (Rupees Two Crores Forty Six Thousand Thirty Four Thousand Five Hundred Forty Nine and Forty One Paise Only). The work was to commence within 15 days of date issuance of LOA. The LOA was issued on 29th December, 2015 and the work was started on 14th January, 2016 and was to be completed 8th September, 2016 as per the Agreement. The work was completed on 19th April, 2018.

5. It is submitted on behalf of the petitioner that the work was delayed by various hindrance such as not providing hindrance free site, non-supply drawing and specifications etc. On 19th April, 2018, the work was completed to the satisfaction of the respondent. However, completion certificate was issued only on 19th April, 2018.

6. It is submitted that the petitioner raised the dispute with the respondent through General Manager on 8th March, 2022 and requested to settle the claims and also invoked the Arbitration clause 25(i) of the agreement for appointment of Arbitrator. However, no response has been Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:13.04.2023 20:52:27 received from the respondents.

7. It is submitted that the petitioner, therefore, vide letter dated 12th April, 2022 invoked Arbitration clause 25 for the agreement and requested the Executive Director to settle the claims but no response received from the Executive Director.

8. Heard.

9. Issue notice. Learned counsels appearing on behalf of respondents no. 1 and 2 accepted notice and prayed for three weeks' time to file reply/objection. Let the same be filed within three weeks as prayed. Rejoinder, if any, be filed within one week thereafter.

10. List on 22nd May, 2023.

CHANDRA DHARI SINGH, J APRIL 12, 2023 gs/as Click here to check corrigendum, if any Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:13.04.2023 20:52:27