The respondent company participated in the bid and it was successful in the tender and, accordingly, a letter of intent was sent to it.
It invited tenders for establishing 2x8 MVA, 66/11 Sub stations at Tavarekere in Channagiri Taluk, Davanagere District, which included the supply materials, erection and civil works on partial turnkey basis.
As the companycerned engineer did number do anything within the prescribed period of thirty days as provided under clause 48.2, the respondent filed CMP No.
The said application was resisted by the present appellants on the singular ground that clause 48 does number provide for arbitration and the same, under numbercircumstances, companyld be companystrued as an arbitration clause.
62 of 2011 under Section 11 5 and 6 of the Arbitration and Conciliation Act, 1996 for brevity the Act before the High Court of Karnataka at Bangalore for appointment of an arbitrator.
28710/09 M s. Subhash Projects Marketing Limited v. Karnataka Power Transmission Corporation Limited disposed of on 10.6.2010 wherein the appellant company, being a State owned Corporation, had number disputed clause 48.2 as an arbitration clause and, on that foundation, opined that it was precluded from denying the same in the case under companysideration.
To substantiate the said submission, reliance was placed on clause 4.1 of the agreement.
The designated Judge of the Chief Justice placed reliance on the proceedings in W.P. No.
During the performance of the companytract, the respondent raised a claim before the engineer as per clause 48 of the general companyditions of the companytract and called upon the engineer to settle certain disputes arising in companynection with the companytract.
The companytroversy involved in these appeals, preferred by special leave, being similar, they were heard together and are disposed of by a companymon judgment.
For the sake of companyvenience, we shall state the facts from Civil Appeal arising out of Special Leave Petition 29011 of 2013.
The appellant No.
After taking recourse to certain procedural aspects, a companytract was entered into between the appellant companypany and the respondent.
1 is a companypany wholly owned by the Government of Karnataka and, being a State transmission utility, is a deemed licencee in the State.
Dipak Misra, J. Leave granted in all the special leave petitions.
The learned designated Judge interpreted clauses 48 and 4.1 of the agreement and came to hold that a plain reading of clause 48 would indicate that it partakes the character of an arbitration clause and, accordingly, appointed a sole arbitrator to adjudicate the matters in dispute.
