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CASE NO.: Appeal (civil)  5352 of 2002

PETITIONER: M/S. KLASSIC CONSTRUCTION PVT. LTD.

RESPONDENT: M/S. ARMY WELFARE HOUSING ORGANISATION

DATE OF JUDGMENT: 25/05/2006

BENCH: Dr. AR. Lakshmanan & Lokeshwar Singh Panta

JUDGMENT: JUDGMENT

                                      O R D E R  

       Heard Mr. P.N. Kumar, learned counsel for the appellant and Mr.  Arvind Kumar Tewari, learned counsel for the respondent.  The  appellant before us is a contractor.  The respondent is the Army  Welfare Housing Organisation represented by its Chairman/Managing  Director.         Both the appellant and respondent  entered into an agreement on   8.5.1990 by which the contract was awarded to the appellant for  executing certain construction works.  Clause 131 of the contract  deals with the arbitration which reads as under:         "131.  If any dispute arises and persists between the  contractor and Employer, the same shall be referred to   the Sole Arbitrator to be appointed by the Chairman, Army  Welfare Housing Organisation, whose award shall be final  and binding on both parties. The Arbitrator shall submit  his award within four months of his entering on the  reference.  This period may be extended by the Arbitrator  with the consent of both the parties."         On 17.5.2006, after hearing both the parties, we passed a detailed  order directing the Army Welfare Housing Organisation to submit a  panel of three names to this Court with a copy  to the learned counsel  for appellant in the form of an affidavit.  Pursuant  to the said  directions, an affidavit dated 22.5.2006 on behalf of respondent  has  been filed before us.  A copy of the said affidavit has also been  served on the counsel for the appellant.  The affidavit reads thus: "An  affidavit on behalf o the Respondent of the  compliance of orders/directions dated 17.05.2006 of this  Hon’ble Court.  

I, Col. A.K. Opal, Secretary Army Welfare Housing  Organisation, a society registered under the Society  Registration Act XXI of 1860 having it’s registered office at  South Hutments, Kashmir House, Rajaji Marg, New Delhi  110011 do hereby solemnly affirm on oath and state as  follows:

That I am the secretary of the respondent society in the  aforesaid case.  I am conversant with the facts and  circumstances of the case, as such competent to affirm  this affidavit.  

1.I say that after hearing the counsels of the parties in the  aforesaid case this Hon’ble Court vide it’s order dated  17.05.2006 was pleased to direct the Ex-Officio  Chairman of the Army Welfare Housing Organisation/

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respondent herein, to nominate a panel of three names  out of which this Hon’ble Court may appoint one such  nominee as a sole arbitrator to adjudicate the disputes  between the parties herein.

2.I say that in compliance to the order(s) / direction(s)  dated 17.05.2006 of this Hon’ble Court, Ex-Officio  Chairman of the Army Welfare Housing Organisation /  respondent herein, has been pleased to comply with the  directions of this Hon’ble Court and has nominated a  panel of the following three engineer officers:  

a.      Brig. Anil Wasan, age 53 years, Deputy Director  General (Navy & Defence Production), Officer shall  superannuate from present appointment on 31 July  2008.  

b.      Brig AK Jairath, age 52 years, Deputy Director  General (Policy Planning and Coordination ).  As a sole  arbitrator has adjudicated 06 cases.  Tenure of the  officer in the present appointment is till November 2008.   Officer superannuates in 2011.

c.      Mr. Satish Chandar, age 49 years, Joint  Director General (Contracts).  Officer’s tenure in present  appointment is till Aug 2009. Officer superannuation in  January 2017.  As a sole arbitrator has adjudicated 40  cases. 3.I say that none of the aforesaid three officers are in any  way involved in the management of the respondent  herein. In the premise, it is most respectfully prayed that this  Hon’ble Court be pleased to: a.      Order/direct one of the aforesaid three named          officers as a sole      arbitrator to adjudicate the          disputes between the parties herein     and publish a          speaking award;

b.      Order/direct the sole arbitrator to adjudicate the          disputes between the parties herein from the          stage from where the    erstwhile sole arbitrator(s)          could not proceed with the      adjudication of the          disputes between the parties pursuant to the          orders  dated 25.01.2002 of this Hon’ble Court;

c.      Order/direct the parties to amend their respective          claims and      counter claims, if they so desire, as          already    filed    before     the         erstwhile   sole          arbitrator (s);

d.      Any other order(s)/direction(s) in the  circumstances of  the case        as may be deemed        fit and appropriate by  this Hon’ble Court."         We gave option to the counsel for the appellant to select one name  among the three from the panel.  Learned counsel for the appellant   suggests the name of Mr. Satish Chandar, who is now working as  Joint Director General (Contracts) as the sole Arbitrator.  Learned   counsel for the respondent has no objection in nominating Mr. Satish  Chandar  as the sole Arbitrator.  Accordingly, we, by consent of both  the parties, nominate Mr. Satish Chandar as the sole Arbitrator.  The  parties will inform Mr. Satish Chandar  that he has been appointed as  a sole Arbitrator to adjudicate upon the disputes between the parties.   Both parties are at liberty to file any additional documents before the  said sole Arbitrator.  The sole Arbitrator shall adjudicate the disputes  between the parties and pass a speaking award.  The sole Arbitrator

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shall adjudicate the disputes between the parties from the stage from  where the erstwhile sole Arbitrator could not proceed with the  adjudication of disputes between the parties pursuant to the order,  passed by this Court on  25.1.2002. Parties  are at liberty to amend  their respective claims and counter-claims, if they so desire.  The  parties are at liberty to approach the sole Arbitrator for any further  direction.  The sole Arbitrator is directed to complete the arbitration  proceedings within six months from the date of entering upon the  reference.         The sole Arbitrator shall enter upon the reference on or before  15.6.2006.  Additional documents, if any, shall be filed within four  weeks from the date of entering upon the reference.  The Civil Appeal  is  disposed of accordingly.  A copy of this order shall also be  forwarded to the sole Arbitrator Mr. Satish Chandar c/o Engineering  in Chief Branch, Army Welfare Housing Organisation, South   Hutments,  Kashmir House, Rajaji Marg, New Delhi 110011.         The interim order passed by this Court stands vacated.  The sole  Arbitrator shall submit his award to this Court.