Case Note & Summary
The applicant, Gold Prism Realty Pvt. Ltd., filed an application under Section 11 of the Arbitration and Conciliation Act, 1996, seeking appointment of an arbitral tribunal to adjudicate disputes arising from two works contracts (Nos. PAB/SHIMPREHAB/WO/004 and PAB/SHIMPSALE/WO/005 dated 16th November 2015) with the respondent, M/s Paradigm Ambit Buildcon. The applicant, engaged in civil construction, was awarded contracts for construction of a rehabilitation building and a free sale building as part of a slum rehabilitation project (SRA) undertaken by the respondent at Borivali (West), Mumbai. Under the contracts, the applicant agreed to purchase a tower crane and a concrete pump for the site, with rent to be paid by the respondent. The applicant commenced work, raised invoices for completed work, and obtained a bank loan for expenses. Disputes arose regarding payment for work done and rent for equipment. The applicant invoked the arbitration clause in the contracts, but the respondent did not respond. The court considered the submissions of both parties, noted the existence of an arbitration agreement, and found that the disputes were covered by the clause. The court appointed a sole arbitrator to adjudicate the disputes, directing the parties to appear before the Bombay High Court for appointment of an arbitrator from the panel of arbitrators maintained by the court.
Headnote
A) Arbitration Law - Appointment of Arbitrator - Section 11 of the Arbitration and Conciliation Act, 1996 - Existence of Arbitration Agreement - The applicant sought appointment of an arbitral tribunal for disputes arising from works contracts containing an arbitration clause. The court examined whether the disputes were covered by the arbitration agreement and held that the arbitration clause was valid and the disputes were arbitrable, thus appointing a sole arbitrator. (Paras 1-23)
Issue of Consideration
Whether an arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996, given the disputes arising from works contracts between the parties.
Final Decision
The court allowed the application and appointed a sole arbitrator to adjudicate the disputes between the parties. The parties were directed to appear before the Bombay High Court for appointment of an arbitrator from the panel of arbitrators maintained by the court.
Law Points
- Section 11 of the Arbitration and Conciliation Act
- 1996
- appointment of arbitrator
- existence of arbitration agreement
- works contract
- disputes referable to arbitration
