[Cites 2, Cited by 0]
Telangana High Court
M/S B. Chandraiah And Sons vs Union Of India on 13 April, 2026
Author: P. Sam Koshy
Bench: P. Sam Koshy
Page 1 of 6
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
THE HONOURABLE SRI JUSTICE P. SAM KOSHY
Arbitration Application No.87 of 2025
Date of order : 13.04.2026
BETWEEN :
M/s.B. Chandraiah and Sons
... Applicant
and
Union of India
... Respondent
ORDER :
The instant Arbitration Application has been filed by the applicant
under Section 15(2) read with Section 11 of the Arbitration and
Conciliation Act, 1996 and the scheme for appointment of Arbitrators,
1996 praying the Court to appoint a sole arbitrator having degree in
engineering or equivalent or having passed final or direct final
examination of Sub-Division-II of Institution of Surveyors (India)
recognized by Government of India as per the arbitration in Clause 6(c)
at Serial Page No.83 of the contract agreement and condition 70 of
General Conditions of Contracts I.A.F.W.2249 for resolution of disputes
arisen in the performance of Contract.
2. Heard Mr.C. Vijaya Kumar Reddy, learned counsel for the
applicant; and Mr. K. Mohan, learned counsel for the respondent.
3. The applicant herein is a Partnership Firm engaged in the business
of taking up and carrying out contract works with Military Engineering
Services (M.E.S.), Public Work Department (P.W.D.), and Railways and
also other works of civil nature; and respondent herein is the Union of
India represented by Chief Engineer R & D, Military Engineer Services,
Picket, Secunderabad.
4. Learned counsel for the applicant submitted that respondent had
floated a tender vide No.82410/80/E8, dated 29.03.2010, which was
subsequently amended vide letter No.82410/82/E8, dated 15.04.2019,
for construction of Multi-Level Car parking at GTRE, Bangalore; the
applicant herein had participated in the tender process; since the
applicant was declared as the lowest bidder, the respondent-Union had
accepted the offer of the applicant; accordingly, the applicant was
allocated work contract agreement bearing number
C.A.No.CERD/BAN/06 of 2010-2011; the said contract work was
scheduled to be completed by 26.12.2011; though the contract work
initially got prolonged, however the same was finally completed on
22.03.2017, and the respondent had accordingly issued completion
certificate vide their letter No.8458/East/631/E8, dated 27.03.2017.
5. Learned counsel for the applicant submitted that the applicant had
addressed an application to the respondent on 26.10.2020, requesting
the respondent to clear dues / amount payable to the applicant;
however, vide letter No.82410/575/E8, dated 10.11.2020, the
respondent rejected the claim of applicant stating that the claim of
applicant of applicant is out of purview of the contract; on the basis of
rejection of the respondent, the applicant invoked Clause 6(c) of the
contract agreement duly suggesting three names of retired officers of the
Department of Military Engineer Services, and requested the respondent
to chose one among the three name; however, the respondent, vide reply
dated 12.01.2021, disagreed to choose a name from among the three
names suggested by the applicant and stated that the arbitrator should
be appointed by Engineer-in-chief under condition 70 of the General
Conditions of Contracts (GCC) IAFW 2249; finally, the applicant has
approached this Court by filing Arbitration Application No.55 of 2021
seeking for appointment of a sole arbitrator; vide order dated 23.06.2022,
a learned Single Judge of this Court was pleased to appoint Hon'ble Sri
Justice Ramesh Ranganathan, Retired Chief Justice of the High Court of
Uttarkhand; however, the said Sole Arbitrator resigned as sole arbitrator
on 15.10.2022.
6. Learned counsel for the applicant further submitted that, on
25.07.2024, the applicant again requested the respondent for
appointment of a sole arbitrator by mutual agreement; since there was
no response from the respondent, the applicant was constrained to file
Arbitration Application No.246 of 2024 before this Court; however, the
said arbitration application was dismissed as withdrawn on 13.03.2025
with a permission to file a fresh application under Section 15(2) of the
Arbitration and Conciliation Act, 1996; accordingly, the applicant herein
again filed the instant arbitration application before this Court.
7. On 20.06.2025, notice was ordered to the respondent, and the
learned counsel appearing on behalf of respondent had entered
appearance and filed counter-affidavit in the matter.
8. Perused the record.
9. Having heard the contentions put forth on either side and also
taking into the consideration the nature of dispute, there seems to be a
clear dispute raised by either party which needs to be decided in the
course of arbitration proceedings by invoking Clause 6(c) of the contract
agreement entered into between the applicant and respondent.
Therefore, this Court is of the considered opinion that the instant
arbitration application can be allowed by referring the matter to a sole
arbitrator from the Impanelled Arbitrators (Engineers), Hyderabad from
the Indian Council of Arbitrators.
10. Accordingly, this Court appoints Mr. K. Ravi Kishore, Chief
Engineer, Military Engineer Services (M.E.S.), resident of H.No.10-3-
274/7, Humayun Nagar, Hyderabad 500 028, as the sole Arbitrator to
resolve the dispute between the parties.
11. Needless to state that both parties are at liberty to raise all claims
and counter claims before the sole arbitrator who in turn shall conduct
the arbitration proceedings in accordance with provisions of the Act.
The venue of arbitration shall be decided mutually by the parties subject
to consultation and agreement of the learned Arbitrator. The fee payable
to the learned Arbitrator shall also be decided mutually by the parties in
consultation and agreement with the learned Arbitrator.
12. The Arbitration Application stands allowed as above. No costs.
13. As a sequel, miscellaneous petitions, pending if any, shall stand
closed.
___________________
P. SAM KOSHY, J
Date: 13.04.2026
Note:
The Registry is directed to furnish copy of this
order to the learned sole arbitrator
B/o.
Ndr
