Delhi High Court
Well Protect Manpower Services ... vs Guru Teg Bahadur Hospital on 16 December, 2021
$~1
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 16.12.2021
+ ARB.P. 1005/2021
WELL PROTECT MANPOWER SERVICES PVT. LTD.
..... Petitioner
Through Mr.Tarkeshwarnath, Mr.Harshit
Singh, Mr.Surya Panwar & Mr.Lalit
Mohan, Advs.
versus
GURU TEG BAHADUR HOSPITAL ..... Respondent
Through Mr.Shalok Chandra, Adv.
CORAM:
HON'BLE MR. JUSTICE SURESH KUMAR KAIT
J U D G M E N T (oral)
1. The present petition has been filed under Section 11(6) of the
Arbitration and Conciliation Act, 1996 seeking appointment of sole
Arbitrator to adjudicate the disputes with respondent.
2. Petitioner is a company registered under the Companies Act, 1956
and is engaged in the business of providing security services and is in
business of executing projects in several sectors like Transport, Energy &
Power, Mining, Buildings, Marine, Industrial Structures and Real Estate.
3. As per the averments made in the present petition, respondent was
awarded a contract to the petitioner for rendering security services of 222
security guards and 2 security supervisors in the premises of GTB Hospital
initially for the period from 19.04.2017 to 30.06.2017 and agreement to this
effect was signed between the parties on 22.06.2017. As payment for
services of 2 security supervisors has not been mentioned in the abovesaid
agreement, an addendum was also signed between the parties on 14.08.2017
and agreed that the reimbursement of payment of workers of the contractor
shall be as per the existing Minimum Wages as notified by the Labour
Department, Government of NCT of Delhi. The respondent extended the
contractual period from time to time.
4. It is submitted by counsel for the petitioner that suddenly respondent
started making deduction from the bills raised by the petitioner for the
period starting July, 2020 onwards. Upon this, petitioner sent various letters
dated 28.12.2020, 06.01.2021, 20.01.2021, 29.01.2021 and 05.02.2021 and
in response thereto, respondent informed that the Auditors from AGCR
calculated over payment of Rs.2.27 crore to the petitioner towards relieving
charges claimed in the bills towards deployment of the personnel on paid
weekly off days of the regular security personnel. It is further submitted that
after pursuing the Audit report, it reveals that the said Audit Report is based
on the premise that contract rate for payment includes the wage of relievers,
deployed by the petitioner on weekly off day in place of the regular security
guards/supervisors.
5. Counsel for the petitioner submits that respondent is in gross violation
of the contractual provisions and labour laws as they have made illegal
deductions from the bills of the petitioner. On 15.03.2021, petitioner sent a
legal notice under Section 80 CPC to the respondent/Hospital calling upon
them to make payment of Rs.2.27 crores along with interest @ 24% p.a.
from the date of deduction till realization, however, respondent in its
response denied the same. Thereafter also, petitioner made efforts to settle
the dispute amicably but the respondent did not turn up.
6. Hence, petitioner sent a notice to the respondent under Section 21 of
the Arbitration and Conciliation Act, 1996 for invocation of Clause 56(a) of
the Terms and Conditions of the Contract and appointment of sole arbitrator,
however, respondent failed to appoint the Arbitrator and thus, the present
petition has been filed.
7. Learned counsel appearing on behalf of respondent has disputed the
claims raised in the present petition, however, has not objected to the
appointment of sole Arbitrator by this Court for adjudication of dispute
between the parties.
8. In view of the above, the present petition is allowed. Accordingly,
Mr. Justice (Retd.) H.R. Malhotra (Mobile: 9311510400) is appointed
sole Arbitrator to adjudicate the dispute between the parties.
9. The fee of the learned Arbitrator shall be governed by the Fourth
Schedule of the Arbitration and Conciliation Act, 1996.
10. The learned Arbitrator shall ensure compliance of Section 12 of
Arbitration and Conciliation Act, 1996 before commencing the arbitration.
11. The present petition stands disposed of accordingly.
12. A copy of this order be sent to the learned Arbitrator for information.
(SURESH KUMAR KAIT)
JUDGE
DECEMBER 16, 2021
ab
