In a significant development, the Delhi High Court has intervened in the ongoing dispute over the final bill between MLH and AF Station, Suratgarh. Efforts are being made to resolve the matter amicably before appointing a sole arbitrator as per the Court’s directive. The Court emphasized quick action for information and resolution of the issue, with all disputes between the parties to be referred to arbitration. Let’s follow the proceedings closely to see how this case unfolds.
Facts
- Final bill for the provision of work services for infrastructure for MLH at AF Station, Suratgarh is under dispute.
- Petitioner raised final bill on 9 October, 2014 for Rs. 40 lakhs.
- Respondent claims there are defects that need rectification before payment.
- Correspondences have been ongoing regarding the final bill.
- Chief Engineer (AF) Palam resolved a DO amicably, but delays persist due to a protest of excavation areas.
- Petitioner’s representative directed to visit Garrison Engineer (AF) for resolution on 1-2 February, 2024.
Analysis
- Upon reviewing the communication, the Court suggested the possibility of resolving the dispute over the final bill between the parties.
- It was directed that efforts should be made to resolve the final bill issue before appointing a sole arbitrator as per the Arbitration Clause in clause 70 of the GCC.
- The Court emphasized on early action for information and resolution of the matter.
- All disputes between the parties, except those with final and binding decisions, shall be referred to arbitration.
- The arbitrator must be a Serving Officer with an Engineering degree or equivalent.
- Arbitration can only proceed after written notice from either party.
- Arbitration cannot take place until after completion of the work or termination of the contract.
Decision
- Mr. Satish Chander, ADG MES appointed as the Sole Arbitrator.
- Arbitrator may proceed exparte if a party fails to participate.
- Arbitrator to give his award within six months or extended time.
- Arbitrator’s award final and binding on both parties.
- If appointed Arbitrator resigns, a new one will be appointed.
- Venue of Arbitration at Arbitrator’s sole discretion.
- Arbitrator to give reasons for the award in all cases.
- In case of dispute, parties may agree on an Arbitrator from MoD panel.
- Final bill under audit check, to be processed in coordination with Petitioner.
- Audit check and final bill finalizing to be completed by 31 July, 2024.
- Arbitrator to enter reference on 12 August, 2024, if necessary.
Case Title: M/S. MAGO CONSTRUCTION PVT. LTD. Vs. UNION OF INDIA & ORS. (2024:DHC:3799)
Case Number: ARB.P.-59/2024
