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2025 DAILYLAW 4774 (RAJ)

M/S AGARWAL BOROTHERS v. NUCLEAR POWER CORPORATION OF INDIA LIMITED

ARBAP/13/2025 · 2025-08-07

Anoop Kumar Dhand

body2025

Judgment text

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[2025:RJ-JP:30557] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR S.B. Arbitration Application No. 13/2025 M/s Agarwal Borothers, Through Its Partner Shri Vipin Agarwal S/o Shri Satya Narayan Agarwal, Aged About 47 Years, Registered Office Chetak Market, Rawatbhata, R/o. Anand Bhawan, 202 New Market, Rawatbhata Via Kota (Raj.) 323305 ----Petitioner Versus 1. Nuclear Power Corporation Of India Limited, (A Government Of India Enterprise) Through Its Chairman And Managing Director, Corporate Office- 16 And 20Th Floor, Center-1, World Trade Center, Kooefe Parade, Mumbai- 400005. Regional Office- Rawatbhata Site, P.o. Anushakti, Via. Kota (Raj.) 2. Site Director, Nuclear Power Corporation Of India Limited, (A Government Of India Enterprise) Regional Office - Rajasthan Of India Enterprise) - Rajasthan Nuclear Power House, Rawatbhata, Distt. Chittorgarh (Raj.) Through Its Regional Director. ----Respondents For Petitioner(s) : Mr. Vinod Kumar Singhal For Respondent(s) : Mr. Dharmendra Jain JUSTICE ANOOP KUMAR DHAND Order 07/08/2025 1. By way of filing this application under Section 11 (6) of the Arbitration and Conciliation Act, 1996 (for short, ‘the Act of 1996’) a prayer has been made for the appointment of an Arbitrator to adjudicate the dispute pending between the parties in terms of Clause 17.8 of the Agreement dated 12.12.2023. [2025:RJ-JP:30557] (2 of 6) [ARBAP-13/2025] 2. Counsel for the applicant submits that a contract was awarded to the applicant on 12.12.2023 for regular maintenance of infrastructure and main plant buildings and WMCF at RAPS- 3 and 4 Plant Site for two years. Counsel submits that on account of non-payment of the amount, the dispute arose between the parties and when the applicant submitted an application before the respondents to settle the dispute in terms of the Arbitration clause through Arbitrator, the said application submitted by the applicant was not entertained and the non-applicants have refused to refer the matter to the Arbitrator, hence under these circumstances, the instant application has been submitted seeking the appointment of an Arbitrator. 3. Per contra, counsel for the non-applicant/respondents opposed the prayer and submitted that when the work assigned to the applicant was not done, the applicant is not entitled to get any amount and the Arbitrator is not required to be appointed and the application is required to be rejected. 4. Heard and considered the submissions made at Bar and perused the material available on record. 5. Perusal of the record indicates that a contract was awarded to the petitioner for regular maintenance of infrastructure and main plant buildings and WMCF at RAPS- 3 and 4 Plant Site for two years. It appears that the some dispute has arisen between the parties on account of non-payment/non- performance of work in time as per Clause 17.8, the dispute can be referred to the Arbitrator as this clause deals with the provisions of the Arbitration which reads as under: [2025:RJ-JP:30557] (3 of 6) [ARBAP-13/2025] “17.8. Arbitration 17.8.1 Any dispute not settled amicably and in respect of which the DRB's decision (if any) has not become final and binding shall be finally settled by arbitration. Unless otherwise agreed by both Parties: I) For contracts with foreign contractors: a) International arbitration with proceedings administered by the international arbitration institution appointed by the corporation, in accordance with the rules of arbitration of the appointed institution; b) the place of arbitration shall be the city where the headquarters of the appointed arbitration institution is located or such other place selected in accordance with the applicable arbitration rules; and c) the arbitration shall be conducted in the language for communications defined in Sub-Clause 1.3; and ii) For contracts with domestic contractors, arbitration with proceedings conducted in accordance with the Indian Arbitration and Conciliation Act, 1996: a) All questions and disputes relating to the meaning of the specifications designs drawings and instructions herein before contained in this Contract or as to the quality of the workmanship or materials used on the work or arising out of the terms and conditions of the Contract whether during the progress of the work or after the completion or abandonment thereof, at the request of the aggrieved party in writing, shall be referred to the sole arbitration of the person and appointed by the Chairman & Managing Director, Nuclear Power Corporation of India Ltd, in respect of the contracts entered for and on behalf of the Corporation, by any Officer / Authority of the Corporation. b) When it appears to the person that there exists an element of a settlement which may be acceptable to the parties, he shall submit them to parties for their observation. He may reformulate the terms of a possible settlement in the light of their observations. c) If the parties reach agreement of the dispute, they may draw up and sign a written settlement agreement. They may request the person to draw up or assist them in drawing up the settlement agreement. d) If settlement agreement shall have the same status and effect as if it is an arbitral award on [2025:RJ-JP:30557] (4 of 6) [ARBAP-13/2025] agreed terms on the substance of the dispute rendered by an arbitral tribunal under section 30 of the Act. e) If a settlement does not appear possible, the person, after consultation with the parties, will give a written declaration that further efforts at Conciliation are no longer justified and the person proceedings are terminated. f) When Conciliation proceedings have become infructious or have been terminated, the party, which initiated the Conciliation, shall refer the disputes for Arbitration. The reference to Arbitration should be made preferably within 30 days of the termination of Conciliation Proceedings. g) The Arbitration shall be conducted in accordance with the Indian Arbitration and Conciliation Act, 1996. For Contracts costing upto Rs. 10 Crores, a Sole Arbitrator shall be appointed. For Contracts costing over Rs. 10 Crores, a Committee of Arbitrators shall be appointed composed of one Arbitrator to be by the Contractor, one to be by the Owner and the third Arbitrator, who will act as a Chairman but not as umpire, to be chosen jointly by the two nominees. The decision of majority of Arbitrators shall be final and binding on both parties.” 6. Since the dispute as arisen between the parties, the matter is required to be adjudicated by appointing an independent and impartial Arbitrator to resolve the dispute between the parties. 7. In view of the reasons stated above, the instant arbitration application stands allowed and this Court appoints Shri S.K. Keshote (Retd. Judge), Resident of 10 Eden Garden, Flat No. 302, Bajaj Nagar, Enclave, Near Gandhi Nagar, Railway Station, Jaipur as Sole Arbitrator to adjudicate/resolve the dispute between the parties. [2025:RJ-JP:30557] (5 of 6) [ARBAP-13/2025] 8. The appointment of the Sole Arbitrator is subject of declaration being made under Section 12 of the Arbitration and Conciliation Act, 1996 (for short 'the Act of 1996') with respect to the independence and impartiality and ability to devote sufficient time to complete the arbitration proceedings within the prescribed period. 9. The arbitration fee of the Sole Arbitrator shall be payable in accordance with the provisions contained in the Manual of Procedure of Alternative Dispute Resolution, 2009 as amended by the Manual of Procedure for Alternative Dispute Resolution (Amendment), 2017 vide notification dated 23.03.2017 read with 4th schedule appended to the Act of 1996 or as determined by the Arbitrator with consensus of parties. 10. The Registry is directed to intimate the Arbitrator- Shri S.K. Keshote (Retd. Judge), resident of 10 Eden Garden, Flat No. 302, Bajaj Nagar, Enclave, Near Gandhi Nagar, Railway Station, Jaipur for his approval and declaration in terms of Section 11(8) read with Section 12(1) of the Act of 1996. 11. All issues raised by the parties before the Arbitrator shall be considered in accordance with law. 12. Since as per Section 29A of the Act of 1996, the arbitration proceedings are required to be concluded within the scheduled time as stipulated therein, it is expected from the parties to appear before the Arbitrator on 28.08.2025 or on any other date as informed by the Arbitrator subject to agreement by the parties. Furthermore, the parties shall provide their respective E-mail/ contact number/ mobile number and/or also of their authorized representatives/ Lawyers appearing on their behalf before the [2025:RJ-JP:30557] (6 of 6) [ARBAP-13/2025] Arbitration Tribunal, in order to facilitate the Arbitrator to send information/communication to the parties, whenever required. The information send by the Arbitrator, on such address/ E-mail/ cellphone of the parties or to their authorized representatives/ Lawyers, shall be treated as sufficient communication unless same is not changed. (ANOOP KUMAR DHAND),J Ashu/154