Calcutta High Court
Unit Construction Co. Pvt. Ltd vs Union Of India & Anr on 20 August, 2014
Author: Soumen Sen
Bench: Soumen Sen
1
GA 1567 of 2014
WITH
CS 84 of 2014
IN THE HIGH COURT AT CALCUTTA
ORIGINAL SIDE
UNIT CONSTRUCTION CO. PVT. LTD.
VERSUS
UNION OF INDIA & ANR.
BEFORE:
The Hon'ble JUSTICE SOUMEN SEN
Date : 20th August, 2014. For the applicant :
Mr. S.K.Sengupta,Advocate Mr. Debashish Das,Advocate Mr. Bidyut Dutt,Advocate Mr. Soumik Sengupta,Advocate For the petitioner :
Mr. Sankarsan Sarkar,Advocate Mr. Sujit Kr. Singh,Advocate Mr. Anirban Ray,Advocate appears.
The Court :- This is an application for variation and/or modification of the order dated 6th March,2014. The present application is in the nature of an application under Section 8 of the Arbitration and Conciliation Act, 1996. The plaintiff in the case of invocation of bank guarantee arising out of a contract as usually it happened impleaded the bank in an attempt to bypass the arbitration agreement. The guarantee was in the nature of a performance guarantee. Disputes and differences have arisen between the parties while executing the contract awarded to the plaintiff. Clause 25 of the agreement contains an 2 arbitration clause. The plaintiff does not dispute the said contract nor the existence of the said clause in the contract.
In view of Sections 5 and 8 of the Arbitration and Conciliation Act,1996 giving exclusive jurisdiction to decide the matter, I think an order is required to be passed referring the parties to arbitration as per clause 25 of the agreement being the No. 15/EE/BCD-I/2009-10 and 19/EE/BCD-I/2011-12.
In view thereof, the disputes and differences of the parties are referred to arbitration as per clause 25 of the agreement. However, interim order already passed shall continue till the Arbitrator enters reference. It shall be open for the plaintiff to pray for renewal and/or extension of the interim order before the Arbitrator.
Since no affidavit is called for, the allegations made in the petition are deemed to have been denied and disputed.
In view of the aforesaid, CS 84 of 2014 shall be permanently stayed. The application is, accordingly, disposed of.
Certified website copies of this order, if applied for, be urgently supplied to the parties subject to compliance with all requisite formalities.
(SOUMEN SEN, J.) S.Chandra