- 1 - NC: 2025:KHC:12919 CMP No. 479 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE ASHOK S.KINAGI CIVIL MISC. PETITION NO. 479 OF 2024 BETWEEN: PARTH INFRASTRUCTURE PVT. LTD., THROUGH ITS AUTHORIZED DIRECTOR MR. BHARAT LILABHAI DONHANIYA, HAVING REGSITERED OFFICE AT T - 2, THIRD FLOOR, KUBER PLUS COMMERCIAL BUILDING, NR. HOTEL KUBER, HOSPITAL ROAD, PORBANDAR - 360 575. …PETITIONER (BY SRI. HITESH KUMAR., ADVOCATE) AND: EXECUTIVE DIRECTOR, M/S. BHARAT HEAVY ELECTRICALS LTD., INDUSTRIAL SYSTEM GROUP (ISG), PROF CNR RAO CIRCLE, OPP. IISC POST, BANGALORE - 560 012. …RESPONDENT (BY SRI. PRASHANTH MURTHY S G., ADVOCATE) Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:12919 CMP No. 479 of 2024 THIS CIVIL MISC. PETITION IS FILED UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 (AS AMENDED) READ WITH RULE 2 OF THE APPOINTMENT OF ARBITRATORS BY CHIEF JUSTICE OF KARNATAKA HIGH COURT SCHEME, 1996 WITH A PRAYER TO (a) APPOINT AN INDEPENDENT AND IMPARTIAL ARBITRATOR UNDER SECTION 11(6) OF THE ARBITRATION AND CONCILIATION ACT, 1996 (AS AMENDED) FOR RESOLUTION OF DISPUTES ARISING OUT TENDER FOR EXECUTION OF BALANCE CIVIL, STRUCTURAL AND ARCHITECTURAL WORKS OF CHP AND AHP 2X250 MW EXTN UNIT 3 AND 4 SIKKA TPS PROJECT, DISTRICT JAMNAGAR AND WORK ORDER NO 88. 150009/RSB DATED 07.05.2015, MENTIONED IN CLAUSE 14 OF ANNEXURE C AND ETC., THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE ASHOK S.KINAGI ORAL ORDER This Civil Miscellaneous Petition is filed under Section 11(6) of the Arbitration and Conciliation Act, 1996 for the appointment of an arbitrator to resolve the dispute that - 3 - NC: 2025:KHC:12919 CMP No. 479 of 2024 arose between the petitioner and respondent in terms of Clause 2.21 of General Conditions of Contract dated 07.05.2015, as per the provisions of the Karnataka Arbitration and Conciliation Act. 2. The brief facts leading rise to the filing of this petition are as follows: The respondent awarded a tender to the petitioner on 07.05.2015 for Rs.12,87,43,476/- (Rupees Twelve Crores Eighty Seven Lakhs Forty three Thousand Four hundred and Seventy Six). After the completion of the execution of tender documents, the respondent issued a tender work and the time limit was fixed for the completion of tender work. The petitioner has completed the tender work after a delay of 1293 days. The Respondent released the last payment of Rs.5,05,328/- on 31.07.2020. 3. The petitioner has sent a reminder to the respondent to release the balance amount, security deposit, retention money etc. - 4 - NC: 2025:KHC:12919 CMP No. 479 of 2024 4. It is contended that the Supreme Court has passed an order regarding exclusion of the period from 15.03.2020 to 28.02.2022 by computing the limitation in the judicial proceedings due to the Covid-19 pandemic. The petitioner has sent letters dated 24.09.2021, 09.02.2023 and 09.12.2023 requesting the respondent to pay the outstanding dues. The respondent requested the ledger confirmation, as per the said letter, the respondent was liable to pay an amount of Rs.80,00,470/- to the petitioner. 5. The petitioner invoked the Arbitration Clause by issuing an Arbitration notice under Section 21 of the Arbitration and Conciliation Act 1996 on 11.03.2024 requesting an appointment of an independent Arbitrator. The said notice was served upon the respondent. The respondent did not reply to the Arbitration notice dated 11.03.2024. The petitioner issued a final reminder on 01.04.2024. The respondent did not respond to the - 5 - NC: 2025:KHC:12919 CMP No. 479 of 2024 arbitration notices dated 11.03.2024 and 01.04.2024. Hence, this petition. 6. Heard the arguments of the learned counsel for the petitioner and respondent. 7. Learned counsel for the respondent submits that he has no objection to appoint Hon'ble Justice Sri.A.S.Bopanna, Former Judge, Supreme Court of India, New Delhi, as an Arbitrator. 8. Perused the records and considered the submissions of the learned counsel for the parties. 9. The point that arises for consideration is "whether the petitioner has made out a ground to refer the dispute to the Arbitrator for resolving the dispute in terms of clause 2.21 of the general conditions of the contract as per the provisions of the Arbitration and Conciliation Act". 10. Admittedly, the respondent invited a tender for the execution of balance Civil, structural and Architectural works of CHP and AHP 2X250 MW Extn Unit 3 and 4 Sikka - 6 - NC: 2025:KHC:12919 CMP No. 479 of 2024 TPS Project, Jamnagar District and a work order was issued on 07.05.2015. 11. Though the work is supposed to be completed within a stipulated period, the petitioner could not complete the work within a stipulated period. The petitioner completed the work after the delay of 1293 days. Thereafter, the petitioner has submitted the bills. The respondent made part payment, but did not release the balance amount. The petitioner issued several notices to the respondent seeking for the release of the security deposit, retention money and other payments. The respondent did not reply to any of the legal notices issued by the petitioner. The petitioner invokes the arbitration as per clause 2.21 of the general conditions of the contract. The arbitration clause under general conditions of the contract provides for an arbitration and reconciliation, which reads as follows: 2.21.1 In case amicable settlement is not reached in the event of any dispute or difference arising out of the execution of the Contract or - 7 - NC: 2025:KHC:12919 CMP No. 479 of 2024 the respective rights and liabilities of the parties or in relation to interpretation of any provision by the Contractor in any manner touching upon the Contract, such dispute or difference shall (except as to any matters, the decision of which is specifically provided for therein) be referred to the sole arbitration of the arbitrator appointed by BHEL/ Incharge (Region) The award of the Arbitrator shall be binding upon the parties to the dispute. Subject as aforesaid, the provisions of Arbitration and Reconciliation Act 1996 (India) or statutory modifications or re enactments thereof and the rules made there under and for the time being in force shall apply to the arbitration proceedings under this clause. The venue of the arbitration shall be the place from which the contract is issued or such other place as the Arbitrator at his discretion may determine 2.21.2 In case of Contract with Public Sector Enterprise (PSE) or a Government Department, the following shall be applicable: In the event of any dispute or difference relating to the interpretation and application of the provisions of the Contract, such dispute or difference shall be referred to by either party to the arbitration of one of the arbitrators in the department of public enterprises. The award of the arbitrator shall be binding upon the parties to the dispute, provided, however, any party aggrieved by such award may make further reference for setting aside or revision of the award to the Law Secretary, Department of Legal Affairs, Ministry of Law and Justice, Government of India. Upon such reference the dispute shall - 8 - NC: 2025:KHC:12919 CMP No. 479 of 2024 be decided by the Law Secretary or the Special Secretary or Additional Secretary when so authorized by the Law Secretary, whose decision shall bind the parties hereto finally ant conclusively 12. The general conditions of the contract provide an arbitration clause that in case an amicable settlement is not reached in the event of dispute or differences arising out of the execution of a contract, such a dispute shall provided and be referred to the sole arbitrator, as the dispute arisen between the petitioner and respondent regarding to the execution of contract. The petitioner has requested to release the said amount, despite the receipt of several notices, the respondent did not release the balance amount as sought by the petitioner. Admittedly, there is an arbitration clause under the general conditions of the contract. The dispute arisen between the parties to the petition is to be referred to the sole arbitrator for resolving the dispute between them. The petitioner has made a ground to refer the matter to the Arbitrator for - 9 - NC: 2025:KHC:12919 CMP No. 479 of 2024 resolving the dispute arising between the parties to the petition. 13. In view of the above discussion, I answer points for consideration in the affirmative. Learned counsel for the respondent has proposed the name of Hon'ble Justice Sri.A.S.Bopanna, Former Judge, Supreme Court of India, New Delhi, as an Arbitrator. 14. Learned counsel for the petitioner has no objections to nominate/appoint Hon'ble Justice Sri.A.S.Bopanna, Former Judge, Supreme Court of India, New Delhi, as an Arbitrator. 15. In view of the above discussions, I proceed to pass the following order: ORDER 1. The Civil Miscellaneous petition is allowed. 2. Hon'ble Justice Sri.A.S.Bopanna, Former Judge, Supreme Court of India, is nominated as a sole Arbitrator to resolve the dispute between the petitioner - 10 - NC: 2025:KHC:12919 CMP No. 479 of 2024 and respondent in terms of clause 2.21 of the general conditions of the Contract, as per the provisions of the Arbitration and Conciliation Act 1996. 3. The Office is directed to forward the copy of this order to the learned Arbitrator and Arbitration and Conciliation Centre, Bengaluru. Sd/- (ASHOK S.KINAGI) JUDGE RCK List No.: 1 Sl No.: 14