Punjab-Haryana High Court
M/S Igen Solutions vs Chandigarh Transport Undertaking on 3 April, 2024
Author: Suvir Sehgal
Bench: Suvir Sehgal
Neutral Citation No:=2024:PHHC:044949
2024:PHHC:044949
ARB-525-2023 -1-
IN THE HIGH COURT OF PUNJAB & HARYANA AT
CHANDIGARH
304 ARB-525-2023
Date of decision:03.04.2024
M/S IGEN SOLUTIONS ...PETITIONER
VS.
CHANDIGARH TRANSPORT UNDERTAKING ...RESPONDENT
CORAM: HON'BLE MR. JUSTICE SUVIR SEHGAL
Present: Ms. Mehak Sood, Advocate and
Mr. Rajesh Sood, Advocate for the petitioner.
Mr. Mohinder Singh Nain, Additional Standing Counsel &
Mr. Ankit Midha, Junior Panel Counsel, for the respondent.
***
SUVIR SEHGAL J. (ORAL)
1. Instant application has been filed under Section 11 (6) of the
Arbitration and Conciliation Act, 1996, for appointment of an
independent Arbitrator to adjudicate the disputes between the parties.
2. Counsel for the petitioner submits that a contract dated
25.08.2020, Annexure A-1, was entered into between the parties and
Clause 12 thereof contains an arbitration clause. She submits that the
petitioner was to install boom barriers and CCTV cameras at some of the
depots of the respondent and the value of the contract was
Rs.35,34,000/- to be completed in five years. She submits that some
additional work was allotted to the petitioner, which was beyond the
terms of the contract. However, no payment was made to the petitioner
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Neutral Citation No:=2024:PHHC:044949
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and rather a show cause notice was issued. Although, the petitioner
submitted a reply, but the contract was terminated vide order dated
16.02.2023, Annexure A-8, and the performance security deposited by the
petitioner was forfeited. She submits that as a dispute arose between the
parties, petitioner served a notice dated 11.08.2023, Annexure A-10,
invoking the arbitration clause. She asserts that no reply has been
received.
3. Upon notice, respondent has filed a reply, which is taken on
record, opposing the prayer made in the petition, wherein it has been inter
alia submitted that a penalty of Rs.30,78,000/- has been imposed upon the
petitioner, besides terminating the contract and forfeiting the performance
security. The objection taken in the reply is that as per the terms of the
arbitration clause, the Secretary Transport, Chandigarh, is to be appointed
as a sole Arbitrator.
4. I have heard counsel for the parties and considered their
respective submissions.
5. The objection raised by the respondent deserves to be noticed
and rejected for the reasons that the Secretary, Department of Transport,
Chandigarh, is interested in the outcome of arbitration proceedings.
Moreover, as has been laid down in the amended provision of Section 12
(5) of the Act, Secretary, Transport, is ineligible to be appointed as an
Arbitrator. Reference can also be made to the judgment of the Supreme
Court in Perkins Eastman Architects DPC & Another Versus HSCC
(India) Ltd. 2020 (20) SCC 760.
6. For the reason afore-going, prayer made in the petition is
accepted.
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7. Petition is allowed. Sh. Suresh Kumar Monga, Former Member
(Judicial), # 0901, N-Block, Wellington Heights, TDI City, Sector 117,
Mohali, Mobile No.9814106356, is appointed as the sole Arbitrator to
adjudicate the dispute between the parties, subject to declaration to be
made by him under Section 12 of the Act with regard to his
independence and impartiality to adjudicate the dispute between the
parties.
8. Parties are directed to appear before the learned Arbitrator on
08.05.2024 or on any day, time and place to be fixed and communicated
by the learned Arbitrator at his convenience.
9. The arbitrator shall be paid fee in accordance with the Fourth
Schedule of the Act, as amended.
10. The arbitrator is requested to complete the proceedings as per
time limit specified under Section 29-A of the Act.
11. Copy of the order be sent to the learned arbitrator.
12. Pending application(s), if any, shall stand disposed of.
03.04.2024 (SUVIR SEHGAL)
sheetal JUDGE
Whether Speaking/Reasoned Yes/No
Whether Reportable Yes/No
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