Delhi High Court
U.B.Engineering Limited vs Steel Authority Of India Limited on 17 July, 2017
$~2
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment delivered on: 17.07.2017
+ ARB.P. 252/2017
U.B.ENGINEERING LIMITED ..... Petitioner
versus
STEEL AUTHORITY OF INDIA LIMITED ..... Respondent
Advocates who appeared in this case:
For the Petitioner : Mr. Vikas Aggarwal
For the Respondent : Mr. Sharat Kapoor, Ms Aashna Nanda and Ms
Tanvi Kalra.
CORAM:-
HON'BLE MR JUSTICE SANJEEV SACHDEVA
JUDGMENT
17.07.2017
SANJEEV SACHDEVA, J. (ORAL)
1. The petitioner has filed the present petition under Section 11 of the
Arbitration & Conciliation Act, 1996(hereinafter referred to as 'the Act').
2. The petitioner was awarded the Contract by Contract dated
20.04.2009 read with Change Order dated 08.07.2013 for erection of plant
and equipment including refractory of BOF and CCP at IISCO Steel Plant,
Burnpur, West Bengal.
3. Disputes have arisen between the parties.
4. The petitioner has invoked arbitration clause contained in the
Agreement.
5. The Arbitration Clause reads as under:-
" Article 10 : Conciliation & Arbitration
10.1 Any disputes, differences, whatsoever, arising
between the parties out of or relating to the
construction, meaning, scope, operation or effect of
this Contract shall be settled between the Employer
and the Contractor amicably. In case such amicable
settlement is not possible, the parties shall take
recourse to the conciliation proceedings for resolving
such dispute, question, claim or differences. The
Conciliatory Committee shall comprise of the
following:
i) A nominee of SAIL-ISP Management - Member
(Independent of the Officer handling the case)
ii) A nominee of Contractor/ Supplier - Member
(Independent of the Officer handling the case)
iii) Head of Law/ Law Officer of SAIL·ISP
- Member and Convener
The above Committee shall conduct the conciliation
proceedings in accordance with the provisions of
Arbitration ·and Conciliation Act 1996. The venue of
the Conciliation shall be at Burnpur. The settlement so
arrived at during conciliation shall be binding on both
the parties and will not be called in question before
any court or forum whatsoever.
Reference to Arbitration shall be made only when the
conciliation has failed.
Arbitration shall be governed by the Rules of Indian
Council of Arbitration (ICA)/ "SCOPE Forum of
Conciliation and Arbitration (SCFA). The venue of
Arbitration shall be New Delhi."
6. Learned counsel for the parties submits that though the parties had
agreed for the arbitration in terms of the Rules of Indian Council of
Arbitration, however, keeping in view the nature of the disputes, they
submit that the reference may be made to an independent sole Arbitrator to
be appointed by the Court.
7. Accordingly, with the consent of the parties, Mr Justice
R.C.Chopra, (Retired) Former Judge of this Court is appointed as the sole
Arbitrator to adjudicate the disputes between the parties. This is subject to
the Arbitrator making necessary disclosure under Section 12 of the Act not
being ineligible under Section 12(5) of the Act.
8. The Arbitrator shall adjudicate the claims of the petitioner and
counter-claims, if any, of the respondent.
9. The Arbitrator shall fix his fee in consultation with learned counsel
for the parties.
10. The parties are at liberty to approach the learned Arbitrator for
elucidating the necessary disclosures and for further proceedings.
11. The petition is accordingly disposed of.
12. Order Dasti under signatures of the Court Master to both the
parties.
SANJEEV SACHDEVA, J
JULY 17, 2017
'Sn'
