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40. In respect of Clause 25 (Settlement of Disputes and Arbitration) of General Conditions of Contract, the Learned Senior counsel for the petitioner submitted that Clause 25 (Settlement of Disputes and Arbitration) of the General Conditions of Contract is in conflict with Section 12 of the Arbitration and Conciliation Act, 1996, and is therefore invalid and unenforceable. The issue also involves the applicability of the Arbitration Clause in Clause 25 of the General Conditions of Contract and which mandates arbitration for dispute resolution, except when the Engineer-in- Chief, North Water Resources Department, cannot appoint an arbitrator for any reason.

41. In 2015, amendments to Section 12 of the Arbitration and Conciliation Act, 1996, along with its VII Schedule, made it impermissible for one party Patna High Court CWJC No.20472 of 2019 dt.31-01-2025 (Engineer-in-Chief North, Water Resources Department) to appoint an arbitrator unilaterally without the other party's consent. However, Clause 25 excludes arbitration if the respondents are unable to appoint an arbitrator, which now conflicts with the amended law. While the parties intended to resolve disputes through arbitration, Clause 25 is now inconsistent with the amended law, as the Engineer-in-Chief can no longer unilaterally appoint the arbitrator without the petitioner's agreement.

52. It is further prayed that this Hon'ble Patna High Court CWJC No.20472 of 2019 dt.31-01-2025 Court may be pleased to declare that Clause 25 of the General Conditions of the Contract as non-est, invalid and unenforceable, being in conflict with Section 12 read with Schedule VII of the Arbitration and Conciliation Act, 1996 as amended. Alternatively, it is prayed that the agreed dispute resolution mechanism under the contract may be given effect to and that all the claims of the respondents be referred for resolution through Arbitration, as the period of contract is completed and the Defects Liability Period is already completed.

53. The Learned counsel for the respondents submits that while the Writ petition initially sought for various reliefs, but during course of submissions, only the following relief were submitted for consideration before this Court i.e., (i) to declare that Clause 25 (ii) of General Conditions of Contract in conflict with Section 12 read with scheduled VII of Arbitration Act, (ii) direction for resolution of disputes Patna High Court CWJC No.20472 of 2019 dt.31-01-2025 through Arbitration (iii) Grant of an interim order until dispute resolution.