Arbitration Case No.269 of 2006 1 IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Date of Decision : 31.07.2009 Chandi Constructor Pvt. Ltd. ....Petitioner versus State of Haryana .....Respondent CORAM : HON'BLE MR.JUSTICE J.S.KHEHAR. Present : Mr.R.K.Shukla, Advocate, for the petitioner. Mr.Ashish Kapoor, Addl. A.G. Haryana, for the repsondent. -.- J.S.KHEHAR, J. Through the instant petition, Chandi Constructor Private Limited, Patiala, sought arbitration of a dispute with the respondent arising out of a contractual agreement dated 8.6.1999. The arbitration clause admittedly applicable to adjudicate the disputes in the contractual relationship between the parties has been appended to the written statement as Annexure R-1. The same is being extracted hereunder: “24.1. If the contractor believes that a decision taken by the Engineer was either outside the authority given to the Engineer by the Contract or that the decision was wrongly taken, the decision shall be referred to the Arbitrator within 28 days of the notification of the Engineer's decision.” Based on the aforestated arbitration clause, it is the sole contention of the learned counsel for the respondent that the claim raised by the petitioner herein on 13.11.2001 was barred by time and could not be entertained. In this connection, it is submitted that the period of limitation Arbitration Case No.269 of 2006 2 would commence from the date of agreement dated 8.6.1999. In order to demonstrate that the agreement was terminated on 27.9.2000, the learned counsel for the respondent has invited this Court's attention to the communication addressed to the petitioner, a copy of which is appended as Annexure R-9 with the written statement. A perusal of Annexure R-9 reveals that the contractual agreement between the parties was sought to be terminated in terms of Clauses 59.2 (a) and 59.2 (e) of the conditions of the contract. So as to determine whether or not the petitioner had been duly intimated in terms of the arbitration clause extracted herein above, reference should essentially be made to Clauses 59 & 60 of the conditions of the contract. Having perused clauses 59 & 60 of the conditions of the contract, it is apparent that the termination of the contract can be rendered on one of the 8 eventualities depicted under Clause 59.2 whereupon payment has to be made to the contractor under Clause 60.1. It is only when the aforesaid consequences of determination are finalized, the contract would be deemed to be terminated. On the other hand, with regard to the the communication dated 27.9.2000 (Annexure R-9) referred to herein above, which expressly indicates that the amount recoverable from the petitioner on termination of the contract was being worked out and would be intimated to the petitioner separately, learned counsel for the respondent has invited this Court's attention to a communication dated 24.8.2001 (Annexure R-12) informing the petitioner to deposit a sum of Rs.40,459/-, and thereafter its reminder dated 5.9.2001 (Annexure R-13). The aforesaid issues remained under the consideration of the respondent till 13.11.2001. It is only thereafter that the Arbitration Case No.269 of 2006 3 final decision must be taken by the respondents so as to enable the petitioner to seek its remedy. It is only on 13.11.2001 that the petitioner sought appointment of an arbitrator in terms of arbitration clause extracted herein above. In view of the above, there is hardly any justification to accept the contention of learned counsel for the respondent to the effect that the request made by the petitioner for appointment of arbitrator was delayed. In view thereof, the solitary contention raised by learned counsel for the respondent not to appoint arbitrator is hereby declined. Mr.O.P.Gupta, retired District and Sessions Judge from the Superior Judicial Services of the State of Haryana, is hereby appointed as Arbitrator. The Arbitrator shall determine his fee and other terms and conditions keeping in mind the total liability involved in the controversy. The petition stands disposed of. 31.07.2009 (J.S.KHEHAR) Mohinder JUDGE