Punjab-Haryana High Court
Nkc Constructins Pvt. Ltd vs Punjab Small Industries And Export ... on 12 March, 2024
Author: Suvir Sehgal
Bench: Suvir Sehgal
Neutral Citation No:=2024:PHHC:028973
ARB-290-2023 (O&M) -1-
Neutral Citation No. 2024:PHHC:028973
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
264 ARB-290-2023 (O&M)
Date of Decision:12.03.2024
NKC Constructions Pvt. Ltd.
... Petitioner
Vs
Punjab Small Industries & Export
Corporation Ltd. and another
.... Respondents
CORAM: HON'BLE MR. JUSTICE SUVIR SEHGAL
Present: Mr. P.S. Rana, Advocate for the petitioner.
Ms. Madhu Dayal, Advocate for the respondents.
***
SUVIR SEHGAL, J. (ORAL)
1. By way of the present petition filed under Section 11(6) of
the Arbitration and Conciliation Act, 1996 (for short 'the Act'),
petitioner has approached this Court for appointment of a sole
Arbitrator to adjudicate the dispute between the parties.
2. Counsel for the petitioner submits that the petitioner was
allotted work of 'construction of cement concrete road in Phase VIII,
Industrial Focal Point, Ludhiana' vide letter of acceptance dated
28.01.2020, Annexure A-2. He submits that in terms of letter
Annexure A-2, petitioner deposited the performance security and the
1 of 3
Neutral Citation No:=2024:PHHC:028973
ARB-290-2023 (O&M) -2-
contract was entered into between the parties. He submits that clause
25 of the general conditions of contract contains an arbitration clause.
He submits that the work was completed on 15.09.2021 and the
petitioner requested the respondents to release the retention money
and also raised some claims, which was rejected by the respondents
vide letter dated 21.09.2022, Annexure A-14. He submits that as
dispute arose between the parties, by letter dated 07.10.2022,
Annexure A-16, petitioner invoked the arbitration clause while
simultaneously requesting the respondents to release the performance
security. He submits that as the respondents assured that the
performance security will be released and on their asking, by letter
dated 08.11.2022, Annexure A-18 petitioner withdrew letter Annexure
A-16. Counsel submits that thereafter, the entire amount of
performance security was released but as the other claims remained
pending, petitioner revived the letter, Annexure A-16 by serving
notice dated 19.03.2023, Annexure A-19, which was rejected and
rather a show cause notice, Annexure A-21 was issued to the
petitioner for blacklisting.
3. Upon notice, response has been filed by the respondents
contesting the claim wherein it has been submitted that after
withdrawing the invocation letter, petitioner could not revive it.
4. I have heard counsel for the parties and have considered
their respective submissions.
5. Narration of the facts given by the parties show that neither
the contract nor the arbitration clause has been denied. The objection
2 of 3
Neutral Citation No:=2024:PHHC:028973
ARB-290-2023 (O&M) -3-
raised by the respondents is that the claims have been settled and after
having withdrawn the invocation letter, the petitioner cannot re-agitate
the claim. As to whether the claim stands satisfied and as to whether
the withdrawal was voluntary, are matters which lie within the domain
of the Arbitrator. They do not require any examination from this Court
at this stage. Reliance in this regard is placed upon the judgment of
the Supreme Court in Union of India Vs. Parmar Construction
Company, 2019 (5) R.C.R. (Civil) 302.
6. In view of the above, this Court is of the view that the
prayer made in the petition deserves to be acceded to.
7. Petition is allowed.
8. Mr. Justice Tejinder Singh Dhindsa, (Retd.), Former Judge
of Punjab and Haryana High Court, House No. 123, Sector 8,
Chandigarh, Mobile Nos. 7837049208, 9815308888, is requested to
act as an Arbitrator to adjudicate the dispute between the parties,
subject to compliance of statutory requirements.
9. Parties are directed to appear before the learned Arbitrator on
date, time and place to be fixed by the Arbitrator at his convenience.
10. Needless to mention, parties will be at liberty to raise all the
claims/defences/counter claims/pleas before the Arbitrator.
11. A request letter along with a copy of this order be sent to Mr.
Justice Tejinder Singh Dhindsa (Retd.)
12.03.2024 (SUVIR SEHGAL)
pooja saini JUDGE
Whether Speaking/Reasoned Yes/No
Whether Reportable Yes/No
3 of 3
