CENTRAL UNIVERSITY OF SOUTH BIHAR

GAYA-824236

SCHOOL OF LAW & GOVERNANCE

Alternative Dispute Resolution (Law 450)

**** **** **** **** **** **** ****

Arbitration Deed

Under the Supervision of:

Mrs. Swati
Assistant Professor,
School of Law & Governance,
Central University of South Bihar.

Submitted By:-

PUSHPANJALI KUMARI
B.A. LL.B (Hons.)
8th Semester (2015-2020)
Enrolment- CUSB1513125032
 ARBITRATION PROBLEM

Facts of issue:

The appellant-Rajasthan Small Industries Corporation Limited invited tender for

“Handling and Road transportation of ISO containers and Cargo between Inland container
Depots at Jaipur, Jodhpur and Ports.” Respondent-Contractor Mr. Srinivasan participated
in the said tender and Letter of Intent was issued in favour of the respondent-Contractor, Mr
Srinivasan on 21.01.2013. The agreement was executed on 28.01.2013 between the parties.
Initially, the contract period was of three years; but it was extended for another two years
from 31.01.2016 by consent of both the parties. Dispute arose between the parties regarding
imposition of transit penalty by the appellant upon the respondent for delay in transportation
of containers, non-payment of handling charges of containers for various period of time and
several other disputes.

The terms of the contract Clause 4.20.1 of Schedule-4 (General Conditions) provided for
arbitration by the Managing Director himself or his or her nominee for the sole arbitration.
The respondent-Contractor requested for appointment of the arbitrator in terms of Clause
4.20.1 of Schedule-4 (General Conditions). One I.C. Shrivastava, IAS (Retd.) was appointed
as the sole arbitrator on 21.02.2018.
 Arbitration Agreement

This agreement is prepared by taking possible circumstances into consideration and

rule for framing of agreement has been followed.
This agreement made and entered between Mr. Srinivasan and Rajasthan
Small Industries Corporation Limited on this 21st day of April 2018 witnessed as follows:

WHEREAS, the differences and disputes have arisen between the parties above -mentioned
regarding the matter of conflict in the business contract and the parties could not mutually
settle the matter. Now the parties agree that the matter as under be referred to arbitration to
obtain an award:

NOW IT IS HEREBY AGREED between the aforesaid parties as follows:

The arbitrator will have the power to decide and determine the following matter, which are
referred to their final determination and award-
(a) Dispute of payment between them.
(b) Dispute regarding delay of performance of contract.
(c) Other question arising during arbitration

1. For the purpose of final determination of the dispute, the matter will be referred
to Mr. I.C. Shrivastava, Sole arbitrator agreed on by parties and their award shall be
final and binding on both the parties.

2. The arbitrator, I.C. Shrivastava asked both parties to submit in written regarding the
issue and differences which has been arisen between the said two parties on the questions
referred to them.

3. The parties have decided to have the arbitration conducted at ‘Chankya arbitration
center’, Gaya

4. The each of the party has to undertake to pay half of the arbitration expenses that shall be
notified subsequent to filing the suit before Chankya Arbitration Center Gaya.

5. Both the parties also undertake to pay his share of total expenses determined within the
arbitral award approved by the council.

6. A reasonable time-limit of 3 months is fixed after consulting the arbitrators for the grant
of the award by them and umpire appointed and the time may be extended in
consultation with the arbitrators or umpire if need be.
7. The provisions of the Arbitration and Conciliation Act, 1996 so far as applicable and
as are not inconsistent or repugnant to the purposes of this reference shall apply to this
reference to arbitration.

8. Both the parties agree that they would co-operate and lead evidence etc. with the
arbitrators so appointed as expeditiously as possible and it is an express condition of this
agreement, that if any of the parties non-co-operates or is absent at the reference, the
arbitrators would be at liberty to proceed with the reference ex parte.

9. The parties hereto agree that this reference to arbitration would not be revoked either by
death of either party or any other cause.

10. If the arbitrators or anyone of them as chosen under this agreement become incapacitated
either by death or sickness or other disability, the parties retain the right of nominating
substitutes and no fresh agreement therefor would be necessary.

11. The arbitrators will be entitled to award money compensation if absolutely necessary in
order to equalize the value of the lots to be allotted to the parties.

12. It is an express stipulation that any award passed by the said arbitrators shall be binding
on the parties, their heirs, executors and legal representatives.

Having agreed to the above by both the parties, the said parties are affixing here signatures
to this agreement on 21st day of April 2018.

Signature I Signature II
Mr. Srinivasan Rajasthan Small Industries Corporation Ltd.
(1st Party) (2nd Party)
 ARBITRAL AWARD

THIS IS THE AWARD by the undersigned, made by Mr. I.C. Srivastava on the day of
05.09.2018.

WHEREAS by an agreement under the contract, made between the parties that if any dispute
should arise in future between the parties thereto relating to or touching the said agreement or
the interpretation thereof or in relation to the rights, duties or liabilities of either party
thereunder the same should be referred to two arbitrators and their umpire in accordance with
the provisions of Arbitration & Conciliation Act, 1996.

AND WHEREAS disputes having arisen between the aforesaid parties relating to the said
agreement, Mr srinivasan by writing dated 21.02.2018 to act as arbitrators and settle the said
matters in dispute between the parties.

NOW BE IT KNOW that, I, the said Sole and Presiding Arbitrator, make my award on the
following matter:

1. I find that the completion of the work although was delayed for 5 months beyond the
agreed date on which it ought to have been completed. The dispute was prima facie
regarding imposition of transit penalty by the appellant upon the respondent for delay
in transportation of containers, non-payment of handling charges of containers for
various period of time and several other disputes.
2. Section 7 and Section 16 of The Arbitration and Conciliation Act, 1996 gives all
relevant principles of arbitration for the said case.
3. I direct the respondent, Mr. Srinivasan to pay appellant Rs. 32 lakh for said delay and
non-payment. Further, the arbitration tribunal gives award in favour of Rajasthan
Small Industries Corporation Limited
Therefore, Mr. Srinivasan is liable to pay Rs. 32 lakh to Rajasthan Small Industries
Corporation Limited.

Signature

I.C. Srivastava