- (1.)The instant arbitration application has been filed by the applicant-Firm under Ss. 10 & 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'Act of 1996') claiming the following reliefs:-
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(2.)The applicant is the partnership Firm, who entered into an agreement with the respondent pertaining to the works pertaining to brick kiln (xxx xxx) to be done from 25/4/1996 to 24/4/1997; thereafter, the work order was issued on 10/4/1996. However, the respondent did not make the necessary pending payments to the applicant against the works so done by it. In pursuance of the letters dtd. 26/5/2020 and 17/7/2020 under the Right to Information Act, 2005, the applicant came to know that total outstanding payment, including security, to be paid by the respondent to the applicant, comes to Rs.1,94,819.00, which was to be paid by the respondent in the year 1999 itself; whereafter, the applicant wrote letters dtd. 20/7/2020, 26/8/2020, 31/8/2020 and 21/9/2020 to the respondent to clear the complete outstanding payments.
2.1 The applicant, for the first time, made a request for referring the dispute in question for arbitration and appointment of an Arbitrator, as per the Arbitration Clause, vide letter dtd. 14/10/2020. Clause 19(a) i.e. Arbitration Clause is reproduced as hereunder:

"Clause -19 Arbitration -

(a) If any question, difference or objection whatsoever shall arise in any way in connection with or arising out of this instrument or the meaning of operation of any part thereof or the rights and duties or liabilities of either party, then save in so far as the decision of any such matter as herein before provided for and has been so decided every such matter constituting a total claim of Rs.5,000.00 or above whether, its decision has been otherwise provided for and whether it has been finally decided accordingly or whether the contract should be terminated or has been rightly terminated and as regards the rights or obligation of the parties as the result of such terminated Termination shall be referred for adjudication to a sole arbitrator to be appointed as hereinafter provided.

For the purpose of appointing the sole arbitrator referred to above, the Chief Engineer/Addl. Chief Engineer will on receipt of notice and prescribed fee from the contractor send a panel of 3 names not below the rank of Supdtg. Engineer of the Rajasthan Govt. and who shall all be presently unconnected with the contract. The contractor shall on receipt of the names as aforesaid select any one of the persons named, to be appointed as a sole arbitrator and communicate his name to the Chief Engineer/Addl. Chief Engineer. The Chief Engineer/Addl. Chief Engineer shall thereupon appoint the said person as the sole arbitrator without delay. The Arbitrator shall given reasons for the award."

(3.)Learned counsel for the applicant submitted that the final bill amount due to be paid to the applicant by the respondent is around 10,23,654/- with interest; the applicant came to know about the said due amount through RTI, in the year of 2020, whereafter, the applicant sent several letters, in regard to the payment of the said final amount, to the respondent.
3.1. Learned counsel further submitted that the applicant also sent a letter dtd. 14/10/2020 for appointment of Arbitrator as per the Arbitration Clause 19(a) of the agreement in question, but despite the same, the respondent did not respond.

3.2. It was also submitted that since the applicant has made the necessary request way back on 14/10/2020, therefore, the issue of limitation does not come in the way of the applicant in getting the dispute resolved through arbitration. It was further submitted that the necessary payment towards the final bill was not made by the respondent. It was also submitted that even as per Ss. 21 and 43 of the Act of 1996 and existence of the arbitration clause herein, the dispute deserves to be referred for arbitration, while making an appointment of an independent and impartial arbitrator.