Clause III.20.1 of the General Commercial Conditions of Contract GCC provides for arbitration.
The award of the arbitrator shall be final and binding on both the parties to the agreement.
The agreement to appoint an arbitrator will be in accordance with the Arbitration and Conciliation Act 1996.
This led to a petition being filed by the appellant before the High Court of Delhi dated 28.10.2017 under Sections 14 and 15 of the Act to state that the arbitrator has become de jure incapable of acting as such and that a substitute arbitrator be appointed in his place.
By the impugned judgment dated 22.11.2017, this petition was rejected, stating that the very person who appointed the arbitrator is estopped from raising a plea that such arbitrator cannot be appointed after participating in the proceedings.
By an order dated 21.10.2017, Shri Khan rejected the appellants application after hearing both sides, without giving any reasons therefor.
In the event of such an arbitrator to whom the matter is originally referred, being transferred or vacating his office or being unable to act for any reason whatsoever, the CMD, BBNL or the said officer shall appoint another person to act as an arbitrator in accordance with terms of the agreement and the person so appointed shall be entitled to proceed from the stage at which it was left out by his predecessors.
There will be numberobject to any such appointment on the ground that the arbitrator is a Government Servant or that he has to deal with the matter to which the agreement relates or that in the companyrse of his duties as a Government Servant PSU Employee he has expressed his views on all or any of the matters in dispute.
Since disputes and differences arose between the parties, the respondent, by its letter dated 03.01.2017, invoked the aforesaid arbitration clause and called upon the appellants Chairman and Managing Director to appoint an independent and impartial arbitrator for adjudication of disputes which arose out of the aforesaid APO dated 30.09.2014.
By a letter dated 17.01.2017, the Chairman and Managing Director of the appellant, in terms of the arbitration clause companytained in the GCC, numberinated one Shri K.H. Khan as sole arbitrator to adjudicate and determine disputes that had arisen between the parties.
The said clause reads as under III.20 ARBITRATION III.20.1 In the event of any question, dispute or difference arising under the agreement or in companynection therewith except as to the matters, the decision to which is specifically provided under this agreement , the same shall be referred to the sole arbitration of the CMD, BBNL or in case his designation is changed or his office is abolished, then in such cases to the sole arbitration of the officer for the time being entrusted whether in addition to his own duties or otherwise with the functions of the CMD, BBNL or by whatever designation such an officer may be called hereinafter referred to as the said officer , and if the CMD or the said officer is unable or willing to act as such, then to the sole arbitration of some other person appointed by the CMD or the said officer.
F. NARIMAN, J. Leave granted.
The appellant, Bharat Broadband Network Ltd. BBNL, had floated a tender dated 05.08.2013 inviting bids for a turnkey project for Signature Not Verified supply, installation, companymissioning, and maintenance of GPON Digitally signed by R NATARAJAN Date 2019.04.16 162932 IST Reason equipment and solar power equipment.
The respondent was the successful L1 bidder.
The appellant issued an Advance Purchase Order APO dated 30.09.2014.
