Tripura High Court Sri Arun Kumar Dey vs The Oil & Natural Gas Corporation ... on 7 May, 2025 Page 1 of 6 HIGH COURT OF TRIPURA _A_G_A_R_T_A_L_A_ ARB P No.07 of 2024 Sri Arun Kumar Dey, Contractor, son of late Biraj Mohan Dey, resident of A.D. Nagar, Police Line, P.O.A.D. Nagar799003, P.S. A.D. Nagar, District West Tripura. ...... Petitioner(s) VERSUS 1. The Oil & Natural Gas Corporation Limited (ONGC), represented by its Executive Director, Tripura Asset, Badharghat Complex, Agartala, P.O. ONGC799014, P.S. Amtali, District West Tripura. 2. The Chief Engineer (Civil), Oil & Natural Gas Corporation Limited, Tripura Asset, Badharghat Complex, Agartala, P.O. ONGC799014, P.S. Amtali, District West Tripura ...... Respondent(s) For Petitioner(s) : Mr. Abhijit Sengupta, Advocate. For Respondent(s) : Mr. Jyotirmoy Das, Advocate. HON'BLE THE CHIEF JUSTICE MR. APARESH KUMAR SINGH ORDER 07/05/2025 Heard Mr. Abhijit Sengupta, learned counsel for the petitioner and Mr. Jyotirmoy Das, learned counsel for the respondentsONGC. [2] Petitioner approached this Court for appointment of an independent Arbitrator in connection with the agreement (Annexure2) between the parties under Section 11(6) read with Section 12 of the Arbitration and Conciliation Act, 1996 as amended. [3] The case of the petitioner is captured in the order dated 02.04.2025 which is extracted hereunder: "Heard Mr. Abhijit Sengupta, learned counsel appearing for the petitioner and also heard Mr. Jyotirmoy Das, learned counsel appearing for the respondents. The case of the petitioner as captured in order dated 18.12.2024 is reproduced hereunder: Page 2 of 6 "Petitioner has invoked the jurisdiction of this Court under Section 11(6) of the Arbitration and Conciliation (Amendment) Act, 2015 for appointment of an independent arbitrator. The contract for "construction of retaining structure, road side drain, reconstruction of eroded roads, recarpeting and repairing of approach roads of well sites of Baramura, Gojalia, Konaban, Rokhia and ADB GCS, Tripura Asset" was awarded in favour of the petitioner by respondentOil and Natural Gas Corporation Limited (ONGC) vide agreement dated 12.11.2020 (Annexure2). Time of completion of the work is 12 months from the date of issuance of work order i.e. 29.10.2020 (Annexure1) or handing over of site whichever is later. The estimated cost of the work was Rs.11,93,22,126.42/ inclusive of GST at the petitioner's quoted percentage 37.01% below the estimated cost. According to the petitioner, upon completion of the work, dispute arose regarding payment of certain bills. During sanction of second running account bill liquidated damages of Rs.1,19,32,213/ was deducted and an amount of Rs.2,97,39,072/ was paid to the petitioner on 31.07.2023. The final bill of the petitioner was prepared for an amount of Rs.90,70,749/. The said final bill was paid on 16.07.2024 after deducting liquidated damage amounting to Rs.4,04,482/. Petitioner represented on 07.08.2024 before the respondent Nos.1 & 2 against the arbitrary and illegal deduction of liquidated damages from the second running account bill and final bill. He prayed for release of the amount failing which he shall have no other option but to approach the court of law (Annexure5). Thereafter, legal notice dated 20.09.2024 was served upon the Executive Director, ONGC, Tripura (Annexure6) detailing his grievances. The schedule of claim contained in the legal notice shows that petitioner seeks realization of liquidated damages by ONGC from the gross bill of the petitioner; claim of Rs.1,23,27,695/ said to be illegally realized and claim of interest @ 12% per annum on the claimed amount with effect from 07.08.2024 i.e. date of demand of notice. Petitioner has sought to invoke clause 25.1.12 of the agreement for appointment of an independent arbitrator. However, since no decision was taken thereupon within 30 days period, petitioner has invoked the jurisdiction of this Court for appointment of an independent arbitrator. Agreement provides for Arbitration and Conciliation under Clause25 which has a detailed mechanism for reference of the disputes to an arbitrator including the constitution of the arbitral tribunal on a graded scale of the amount claimed. Mr. A. Sengupta, learned counsel for the petit