Arbitration Case No.87 of 2006 1 Arbitration Case No.87 of 2006 Present: Mr.P.K.Palli, Senior Advocate with Ms. Namrata, Advocate, for the petitioner. Mr. S.K.Sharma, Advocate, for the respondents. *** Learned counsel for the respondents has contended that there is no dispute in the matter as full and final payment has been made to the petitioner. On the other hand learned counsel for the petitioner states that No Objection was given by the petitioner under coercion of the respondent , therefore, the question whether the full and final payment has been made in accordance with law is to be determined by the Arbitrator. There is no dispute with regard to the payment of the amount. There is an arbitration clause in the agreement contained Clause 70. The said clause is to the following effect:- “70. Arbitration- All disputes, between the parties to the Contract (other than those for which the decision of the C.W.E. Or any other person is by the Contract expressed to be final and binding) shall, after written notice by either party to the Contract to the other of them, be referred to the sole arbitration of an Engineer Officer to be appointed by the authority mentioned in the tender documents. Unless both parties agree in writing such reference shall not take place until after the completion or alleged completion of the works or termination or determination of the contract under Condition Nos. 55, 56 and 57 hereof. Arbitration Case No.87 of 2006 2 Provided that in the event of abandonment of the works or cancellation of the Contract under Condition Nos. 52, 53 or 54 hereof, such reference shall not take place until alternative arrangements have been finalized by the Government to get the works completed by or through any other Contractor or Contractors or Agency or Agencies. Provided always that commencement or continuance of any arbitration proceeding hereunder or otherwise shall not in any manner militate against the Government's right of recovery from the contractor as provided in Condition 67 hereof. If the Arbitrator so appointed resigns his appointment or vacates his office or is unable or unwilling to act due to any reason whatsoever, the authority appointing him may appoint a new Arbitrator to act in his place. The arbitrator shall be deemed to have entered on the reference on the date he issues notice to both the parties, asking them to submit to him their statement of the case and pleadings in defence. The Arbitrator may proceed with the arbitration, exparte, if either party, inspite of a notice from the Arbitrator fails to take part in the proceedings. The Arbitrator may, from time to time with the consent of the Arbitration Case No.87 of 2006 3 parties, enlarge, the time upto but not exceeding one year from the date of his entering on the reference, for making and publishing the award. The Arbitrator shall give his award within a period of six months from the date of his entering on the reference or within the extended time as the case may be on all matters referred to him and shall indicate his findings, along with sums awrded, separately on each individual item of dispute. The venue of Arbitrator shall be such place or places as may be fixed by the Arbitrator in his sole discretion. The award of the Arbitrator shall be final and binding on both parties to the contract. If the value of the claims or counter claims in an arbitration referred exceeds Rs. 1 lakh the arbitrator shall give reasons for the award.” From the aforesaid arbitration clause, it is manifestly clear that all disputes between the parties to the contract have to be referred to the arbitration. The question whether full and final payment was made and certificate was obtained by the respondents under coercion, will be a dispute covered by the arbitration agreement. Therefore, as the respondents have failed to comply with the terms of the arbitration agreement, I appoint Mr. Justice M.S.Liberahan, retired Chief Justice of Andhra Pradesh High Court as Sole Arbitrator to decide the dispute between the parties. The Arbitrator shall fix his own fee. The fee will be shared between the parties. Arbitration Case No.87 of 2006 4 Parties to appear before the Arbitrator on 13.01.2007. The petition stands disposed of. (VIJENDER JAIN) CHIEF JUSTICE December 8, 2006 nt