and sought appointment of an Arbitrator. In reply to the said communication, the Executive Engineer, Provincial Division No.1, PWD B&R, Karnal vide communication dated 03.10.2008 conveyed to the petitioner that an amount of Rs.4,38,170/- is lying as balance security deposit, which is payable after the defect liabilities period i.e. 24 months from the date of completion (20.06.2007). It is further communicated that if the petitioner still has any claim for arbitration, therefore, as per clause 25A (7), security deposit amounting to 7.5% of amount claimed may be deposited. In pursuance of such communication, on 18.10.2008, the petitioner communicated that deposit of security at the rate of 7.5% in terms of contract agreement is not relevant at this stage and that in terms of sub clause 25A(11), the reference for arbitration is to reckon from the day on which the notice is issued to the parties fixing first date of hearing by the Arbitrator. Subsequently, on 10.11.2008, the petitioner was informed that final payment has been made to the petitioner and that there is no need to appoint an Arbitrator in this case.
