Tripura High Court Sri Arun Kumar Dey vs Ongc And Another on 2 April, 2025 Page 1 of 8 HIGH COURT OF TRIPURA _A_G_A_R_T_A_L_A_ ARB P No.07 of 2024 Sri Arun Kumar Dey ...... Petitioner(s) VERSUS ONGC and another ...... 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 02/04/2025 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: "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 Page 2 of 8 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 petitioner submits that respondents may be asked to furnish their reply as to why an independent arbitrator be not appointed. Issue notice upon the respondents under ordinary process and speed post for which requisites be filed by Friday (20.12.2024). Notice is made returnable on 22.01.2025." Counteraffidavit was filed by the respondentONGC thereafter. Mr. Jyotirmoy Das, learned counsel for the respondents has referred to the contents of the counter affidavit. At the outset, it is contended that after receipt of the second running account bill along with statement of payment details through registered Email ID of the petitioner on 31.07.20