PCM Cement Concrete Pvt. Ltd. Vs Union of India And Anr. (Gauhati High Court)
Material Facts: The petitioner, M/s PCM Cement Concrete Pvt. Ltd., entered into a contract agreement dated 02.07.2018 with the respondents (Union of India and N.F. Railway) to build and operate a 25,000 MT capacity godown with a private siding under the Private Entrepreneurship Godown Scheme of the Food Corporation of India (FCI). Disputes arose between the parties under the contract. Clause 64 / Clause 64(1)(3)(a)(ii) of the contract agreement provided for dispute resolution through an Arbitral Tribunal consisting of three serving/retired Railway Officers appointed by the General Manager, Northeast Frontier Railway.
Procedural History: The respondent Railways issued a letter requesting the petitioner to waive its right under Section 12(5) of the Arbitration and Conciliation Act, 1996, to enable the constitution of a 3-member Arbitral Tribunal of serving/retired Railway Officers. The petitioner refused to waive its rights under Section 12(5) and filed an application before the Gauhati High Court under Section 11(6) of the 1996 Act for the appointment of an independent arbitrator. During the pendency of the writ/arbitration petition, the respondents unilaterally constituted an Arbitral Tribunal comprising three serving/retired Railway Officers vide letters dated 30.10.2023. On 10.04.2024, the High Court issued an order proposing an Arbitral Tribunal of three independent retired judges and sought statutory disclosures. Subsequently, disclosures confirming willingness were received.
