Technocrats Advisory Services Private Limited vs. Ministry of Road Transport and Highways & Anr.
Background
The petitioner, which had provided consultancy services for feasibility studies and Detailed Project Reports for road stretches in Bihar under a 2017 contract with the Ministry of Road Transport and Highways, invoked the arbitration clause in the contract in December 2024 after a dispute arose. Neither side disputed the existence or validity of the arbitration clause.
Decision Breakdown
The Court appointed Mr. Amit George, Advocate, as sole arbitrator under DIAC rules, since there was no impediment to arbitration. Notably, the respondent's counsel also expressed willingness to explore an amicable settlement, so the Court granted three weeks for settlement negotiations and directed that the arbitrator enter upon the reference only after four weeks, giving the parties a real window to resolve the dispute before arbitration formally begins.
Lesson Learnt
Courts appointing arbitrators can build in a deliberate pause for settlement talks between the parties before the arbitration itself starts, rather than forcing an immediate plunge into formal proceedings.