Punjab-Haryana High Court
Infinity Infra vs State Of Punjab And Others on 9 May, 2024
Author: Suvir Sehgal
Bench: Suvir Sehgal
Neutral Citation No:=2024:PHHC:065274
ARB-500-2023 -1-
IN THE HIGH COURT OF PUNJAB & HARYANA AT
CHANDIGARH
259 ARB-500-2023
Date of decision:09.05.2024
INFINITY INFRA ...PETITIONER
VS.
THE STATE OF PUNJAB AND OTHERS ...RESPONDENTS
CORAM: HON'BLE MR. JUSTICE SUVIR SEHGAL
Present: Mr. R.K. Girdhar, Advocate for the petitioner.
Mr. Brijesh, AAG, Punjab,
for respondents No.1 and 2.
Ms. Ayushi Sharma, Advocate for respondent No.3.
***
SUVIR SEHGAL J. (ORAL)
1. Instant application has been filed under Section 11 read with
Section 12 of the Arbitration and Conciliation Act, 1996, (for short "the
Act"), for appointment of an independent Arbitrator to decide the
dispute/claim of the petitioner.
2. Counsel for the petitioner submits that the petitioner was
issued a work order dated 13.08.2021, Annexure A-2, for laying premix
carpet in Ward No.21 Near Canal, Dhuri in District Sangrur by
respondent No.3. He submits that the petitioner completed the work
within stipulated period and the due payment was released, however, the
security amount deposited by the petitioner was deducted from the
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running bills. He submits that the petitioner gave various representations
and approached this Court by filing a writ petition, which was disposed
of vide order dated 01.06.2023, Annexure A-4, with a direction to
respondent No.3 to decide the representation dated 31.08.2022,
Annexure A-3. He submits that the respondents passed order dated
01.08.2023, Annexure A-5, rejecting the claim. He submits that in terms
of Clause 11 of NIT, petitioner issued notices dated 22.08.2023 and
07.09.2023, Annexures A-6 and A-7, invoking the arbitration clause,
which was followed by legal notice dated 12.09.2023, Annexure A-8. He
submits that the notices did not yield any result.
3. Upon notice by this Court, respondents No.1 and 2 and
respondent No.3 have filed separate replies.
4. Stand taken by contesting respondent No.3 is that the due
payment has been made to the petitioner and in terms of Clause 11 of
NIT, the Deputy Director is to be appointed as an Arbitrator.
5. I have heard counsel for the parties and considered their
respective submissions.
6. The Deputy Director is an official of the State Government,
who is naturally interested in the outcome of the dispute. He is de-barred
from acting as an Arbitrator in view of the judgment of the Supreme
Court in Perkins Eastman Architects DPC & Another Versus HSCC
(India) Ltd. 2020 (20) SCC 760. As to whether the entire payment has
been made or whether the petitioner is entitled to any amount, is to be
determined by the Arbitrator. Prayer made in the petition deserves to be
accepted qua respondent No.3.
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7. Petition is allowed. Sh. Bhupesh Dogra, Advocate, # Flat No.
403, Tower-E, Victoria Heights, Peer Muchalla, Sector 5, Zirakpur, SAS
Nagar, Mohali, Mobile No.9780622168, is appointed as the sole
Arbitrator to adjudicate the dispute between the petitioner and
respondent No.3, 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.
8. Petitioner and respondent No.3 are directed to appear before
the learned Arbitrator on 31.05.2024 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. Arbitrator is requested to complete the proceedings as per time
limit specified under Section 29-A of the Act.
11. Needless to mention that all the questions arising between the
said parties in this matter shall remain open for determination in the
arbitral proceedings and any observation made hereinabove will not be
binding on the learned Arbitrator.
12. Copy of the order be sent to the learned Arbitrator.
09.05.2024 (SUVIR SEHGAL)
sheetal JUDGE
Whether Speaking/Reasoned Yes/No
Whether Reportable Yes/No
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