TaxTMI 
TaxTMI 
2019 (8) TMI 1090
X X X X Extracts X X X X
X X X X Extracts X X X X
....ourt of Punjab & Haryana at Chandigarh. 3. The appellant-Company, a Government of India enterprise, has issued a tender notice on 05.05.2011, inviting tenders for construction of Ash Pond-IV in District Angul of Odisha State. The first respondent herein i.e Subhash Infra Engineers Pvt. Ltd. (for short 'SIE') has submitted its offer/tender on 06.06.2011. On 09.11.2011, the appellant herein has accepted the offer/tender submitted by the first respondent herein and issued the work order to the said respondent. By a letter dated 18.11.2011, the appellant addressed the first respondent to attend a kick off meeting on 19.11.2011. As no one on behalf of first respondent attended the meeting proposed on 19.11.2011, the appellant again issued a l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....came into existence between the parties, as such, the demand is illegal and unjustified. A letter dated 28.02.2015 was communicated to that effect, to the appellant. 5. Further, when the appellant-company asked the respondent/SIE to select an arbitrator from a panel of three names sent by it, the respondent/SIE, vide letter dated 23.07.2015, informed the appellant that, as much as, there is no binding contract that came into existence between the parties, the disputes cannot be resolved by the arbitrator. 6. The appellant herein, having regard to terms and conditions of contract, invoked the arbitration clause, by proceeding dated 02.09.2015 and appointed the second respondent Shri C.R. Pradhan, who was the Former Chairman(CMD) of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....llant and Sri Manoj Swarup, learned counsel for the first respondent, though the second respondent is served, there is no appearance on his behalf. We have perused the impugned order and other material placed on record. 10. It is the case of the appellant, that as much as the appellant has accepted offer/tender submitted by respondent, it is a concluded contract and is an arbitration agreement within the meaning of Section 7 of the Arbitration and Conciliation Act, 1996 (for short, 'the Act'). On the other hand, it is the case of the respondent, as acceptance was not unconditional, it does not amount to a binding contract between the appellant and the first respondent, as such, the arbitrator has no jurisdiction to decide the lis between....
X X X X Extracts X X X X
X X X X Extracts X X X X
....with regard to existence or validity of the arbitration agreement, it is open for the first respondent to move an application before the arbitrator, but with such plea, he cannot maintain a suit for declaration and injunction. Though the Trial Court rightly rejected the interim injunction sought for by the first respondent, the same is erroneously reversed by the learned Additional District Judge and such order is confirmed by the High Court, by the impugned order. 15. As we are of the view that the order passed by the Additional District Judge and the High Court are not in conformity with the law on the subject and are contrary to judgment of this Court as referred above, the impugned order is liable to be set aside by vacating the inju....