Reserved Judgment IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL Arbitration Application No. 12 of 2006. M/s Globe Transport Company (P) Ltd. Registered Office 16/17, Transport Nagar, Narol Char Rasta, Ahmedabad-382405, through its Director Sri Ram Rattan Aggarwal. … Applicant. Vs. 1. The Director (Exploration). The Oil & Natural Gas Corporation Ltd. Jeevan Bharti Tower-II, 124 Cannaught Circus, New Delhi-110001. 2. The Oil & Natural Gas Corporation Ltd. Jeevan Bharti Tower-II, 124 Cannaught Circus, New Delhi-110001, through its CMD. 3. The Dy. General Manager (Logistics), Department of Corporate Logistics (Planning) Shed No. 27, ONGC, Tel Bhawan, Dehradun-248001. 4. The GGm, In-Charge Frontier Basin, Triple shed, Shed No. 13, ONGCL, Tel Bhawan, Dehradun-248001. …Opposite Parties. Sri S.K.Jain, learned counsel for the applicant. Sri J.P.Joshi, Adv., learned counsel for the respondents. Date January 11, 2008 Hon’ble B.S.Verma, J. This application under Section 11(5) and 11(6) of the Arbitration and Conciliation Act, 1996 (for short the Act) has been moved by the applicant to appoint an Arbitrator to decide the dispute between the applicant-Company and the opposite parties- Oil & Natural Gas Corporation Ltd. According to the applicant, the applicant is a registered contractor in the respondent Department ONGCL and a contract agreement dated 13-5-2004 was executed between them, which was signed by both the parties. The applicant was given the contract for providing service for Turnkey Transportation of Drilling Rig No. E-2000-VIII for its day today round the clock operations and other duties as per requirement of the opposite parties. A true copy of the agreement has been annexed as Annexure No. 2 to the application. The applicant has given other details of the agreement in para no. 4. The period of contract was 4 months from the date of issue of Letter Of Intent, which was issued on 1-5-2004 by the respondents. The contract work was undertaken by the applicant. During the pendency and progress of the contract work, some dispute has arisen with the result that the landowners/local residents created obstructions and hurdles in the loading of machines etc. Information in that regard was given to the opposite parties from time to time with the request to intervene into the matter. Ultimately, the contract work could not proceed further due to the obstructions, hurdles and barricading caused by the local residents and that too due to non payment of their dues by the opposite parties. The applicant claimed payment of the works done by it as mentioned in paragraph no. 9 against two bills dated 28-9-2004 and 12-10-2004. The applicant has made several requests to the opposite parties and has sent letters on 3-12-2004, 22-12-2004 and 27-12-2004 but they paid no heed to them and no payment was made by the opposite parties. The applicant made requests for settlement of the claims/disputes by arbitration through various letters copy of which is annexed as Annexure No.3. When the Opposite Party No. 3 did not pay any attention to the request made by the applicant, the applicant served notices on the O.P.No.3 copy of which is annexed as Annexure No. 4. According to the applicant, there is arbitration clause in General Condition of the Contract Agreement. A copy of the contract agreement has been filed as Annexure No. 1 to the application. On behalf of the opposite parties, counter affidavit duly sworn in by Sri Suresh Chand, Manager Logistics of the opposite parties has been filed and in paragraph no. 5, it has been stated that “it is evident from the said clause that there cannot be an outsider for the purpose of appointment of an arbitrator because the matter has to be referred to sole arbitrator appointed by the Director of ONGC. The petition sent a notice dated 5.5.2006 to the respondents for the purpose of appointment of an arbitrator. The Director is yet to take a final decision on it, as such this petition is pre-mature.” This counter affidavit is dated 6-9-2006. In paragraph no. 9 of the counter affidavit, the respondents have stated that the petitioner had accepted Rs. 35,12,405/- against payment of Rs. 48,46,981/- towards full and final satisfaction against the bill dated 28-9-2004 and other payments. I have heard learned counsel for both the parties and perused the record. From a bare perusal of the copy of the contract agreement, it is evident that there is an arbitration clause under Clause 23.0 and Clause 23.03 provides that appointment of arbitrator shall be made within 30 days of the receipt of the arbitration notice. It is admitted to the opposite partiers that the arbitration notice was sent by the applicant on 5.5.2006. According to the Opposite Parties, the decision is yet to be taken by the Director O.N.G.C. The counter affidavit has been sworn in on 6-9- 2006, but till then arbitrator has not been appointed. On the other hand, the respondents in their counter affidavit has nowhere stated that the dispute raised by the applicant is not referable to the Arbitrator rather have admitted certain payment having been made to the applicant against Bill dated 28-9- 2004. The dispute between the parties is referable to arbitration. The respondents have themselves admitted that there is arbitration clause in the contract agreement and that the arbitration notice under Section 11(5) of the Act (Annexure No. 5) is admittedly served upon them. The allegation where the contract work was required to be completed within a period of 30 days or not and whether the applicant had received the payments from the opposite parties towards full and final settlement shall be considered by the arbitrator. In the above facts and circumstances of the case, the dispute between the parties is referable to the Arbitrator and the application for arbitration moved by the applicant deserves to be allowed. The application for appointment of arbitrator is accordingly allowed. The Director, Oil & Natural Gas Corporation Ltd. is directed either to proceed with the arbitral proceedings himself or to appoint Sole Arbitrator within a period of two weeks from the date of production of certified copy of this order, to settle the dispute between the parties. The Sole Arbitrator shall conclude the arbitral proceedings and shall pass his award, expeditiously as far as possible. Both the parties shall file necessary documents before the Sole Arbitrator as and when directed by him. Costs easy. (B.S.Verma,J.) RCP