Case Note & Summary
The applicant, M/s. Shanti Enterprises, a partnership firm engaged in construction, filed an application under Section 11 of the Arbitration and Conciliation Act, 1996 against the Union of India for appointment of an arbitrator to adjudicate disputes arising out of Contract Agreement No. C.A. No. CENM M-13 of 2011-12 for addition/alteration and improvement to Building P/151 at INS Hamla. The respondent had invited tenders, and the applicant was declared the successful bidder. A letter of acceptance dated 20th October 2011 was issued, followed by a work order with commencement on 9th November 2011 and completion by 9th November 2012. The total contract value was Rs.53,65,623/-. The contract was governed by General Conditions of the Contract (GCC), and Condition 70 contained the arbitration agreement. Disputes arose between the parties, and the applicant invoked the arbitration clause. The respondent did not appoint an arbitrator, leading to the present application. The court examined the arbitration clause and found that an arbitration agreement existed. The court allowed the application and appointed a sole arbitrator to adjudicate the disputes. The judgment does not detail the specific disputes or arguments of the parties beyond the existence of the arbitration agreement.
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 arbitrator under Section 11 of the Act for disputes arising from a construction contract with the Union of India. The contract contained Condition 70 providing for arbitration. The court found that an arbitration agreement existed and appointed an arbitrator. Held that the application under Section 11 is maintainable and the arbitrator is appointed. (Paras 1-11)
Issue of Consideration
Whether an arbitrator should be appointed under Section 11 of the Arbitration and Conciliation Act, 1996 to adjudicate disputes arising out of a contract containing an arbitration clause (Condition 70 of GCC).
Final Decision
The court allowed the application and appointed a sole arbitrator to adjudicate the disputes between the parties.
Law Points
- Section 11 of the Arbitration and Conciliation Act
- 1996
- Appointment of Arbitrator
- Existence of Arbitration Agreement
- General Conditions of Contract
- Condition 70
