Arbitration Case No. 57 of 2005 [1] IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Arbitration Case No. 57 of 2005 Date of Decision: 29.03.2010 Ankush Engineering & Contractors Pvt. Ltd. ..Petitioner Versus Punjab Urban Development Authority and others ..Respondents CORAM: HON'BLE MR. JUSTICE MUKUL MUDGAL, CHIEF JUSTICE 1.Whether Reporters of local papers may be allowed to see the judgment ? 2. Whether to be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest? Present :- Mr. D.K.Singal, Advocate, for the petitioner. Mr.R.K.Sharma, Advocate for the respondents. *** MUKUL MUDGAL, C.J. (Oral) 1. This petition has been filed by the petitioner under Section 11(6) of the Arbitration & Conciliation Act, 1996 (for short ' the Act), for appointment of a sole Arbitrator to adjudicate upon the disputes between the parties. 2. Clauses 25(v) and 25(viii) of the agreement contain the Arbitration Clause which read as under:- Arbitration Case No. 57 of 2005 [2] “ 25(v)- All disputes or differences in respect of which the decision is not final and conclusive shall, at the request of either party made in a communication sent through registered A.D.Post, be referred to the sole arbitration of the, Superintending Engineer of the circle concerned in the Punjab Urban Planning and Development Authority acting as such at the time of reference unless debarred from acting as an Arbitrator by an order of the Authority in which event, the Chief Administrator shall appoint any other technical officer not below the rank of Superintending Engineer to act as an arbitrator on receipt of a request from either party. 25(viii) It shall be an essential term of this contract that in order to avoid frivolous claims, the party invoking arbitration shall specify the disputes based on facts and calculations stating the amount claimed under each claim and shall furnish a “furnish-at-call” for ten percent of the amount claimed, on a scheduled bank in the name of the Arbitrator, by his official designation who shall keep the amount in deposit till the announcement of the award. In the event of an award in favour of the claimant, the deposit shall be refunded to him in proportion to the amount awarded with respect to the amount claimed and the balance, if any, shall be forfeited and paid to the other party”. 3. The existence of arbitration clause and invocation thereof have not been disputed by learned counsel for the respondents. The main issue raised by him at the out set is that in view of clause 25(viii) of the agreement, the petitioner has not “deposited at call” 10% of the amount claimed in its claim sought to be referred to the arbitrator for arbitration as that is a pre-condition for referring the matter to the Arbitrator. He further states that in case the petitioner company now complies with that mandatory condition, respondent No.3 who is a named Arbitrator in the arbitration clause contained in the agreement, shall start arbitration proceedings. 4. Learned counsel for the petitioner faced with this situation prays for time to deposit the amount with a further prayer that the Arbitration Case No. 57 of 2005 [3] petitioner be allowed to amend its claim already submitted for arbitration. 5. In view of the aforesaid stand of the parties, this application is disposed of with a direction that in case petitioner- company deposits the amount as contemplated in sub clause (viii) of clause 25 of the agreement within a period of four weeks from today, the Arbitrator viz. respondent No.3 shall start arbitration proceedings. However, it will be open for the petitioner to seek amendment of its claim already set up in the notice and make deposit accordingly. The statement of claim be supplied to counsel for the respondents by counsel for the petitioner within four weeks and response to the statement of claim shall be supplied to the counsel for the petitioner within four weeks thereafter. The parties shall appear before the named Arbitrator on 5.7.2010 at 4.00 P.M. or on an agreed date convenient to the parties but not later than a fortnight from the date of exchange of pleadings as directed aforesaid. The Arbitrator shall dispose of the reference not later than six months from the date of first appearance of the parties. (MUKUL MUDGAL) CHIEF JUSTICE 29.03.2010 'ravinder'