Common use of Pre-Integrity Pact Clause Clause in Contracts

Pre-Integrity Pact Clause. To be included if applicable if the purchases exceeds Rs.100 crores. The format of Pre-Integrity Clause as per Form DPM-10. (Refer to Para 3 of Part V- Standard Conditions Contract) (i) All disputes or differences arising out of or in connection with the present contract including the one connected with the validity of the present contract or any part thereof, should be settled by bilateral discussions. (ii) Any dispute, disagreement of question arising out of or relating to this contract or relating to construction or performance (except as to any matter the decision or determination whereof is provided for by these conditions),which cannot be settled amicably, shall within sixty (60) days or such longer period as may be mutually agreed upon, from the date on which either party informs the other in writing by a notice that such dispute, disagreement or question exists, will be referred to a sole Arbitrator. (iii) Within sixty (60) days of the receipt of the said notice, an arbitrator shall be nominated in writing by the authority agreed upon by the parties. (iv) The venue of the arbitration proceedings will be the premises of the HQ Northern Command/Udhampur, or such other place as the sole arbitrator may decide. (v) Subject as aforesaid the Arbitration Act 1996 and the Rules there under and any statutory modification thereof for the time being in force shall apply to the arbitrator proceedings under this clause. (vi) Each party shall bear its own cost of preparing and presenting its case. The cost of arbitration including the fees and expenses shall be shared equally by the parties, unless otherwise awarded by the sole arbitrator. (vii) The parties shall continue to perform their respective obligations under this contract during the pendency of the arbitration proceedings except in so far as such obligations are the subject matter of the said arbitration proceedings. (viii) The arbitrator may, from time to time, with the consent of the parties, enlarge the time for making and publishing the award. (Note - In the event of the parties deciding to refer the dispute/s for adjudication to an Arbitral Tribunal then one arbitrator each will be appointed by each party and the case will be referred to the Indian Council of Arbitration (ICADR) for nomination of the third arbitrator. The fees of the arbitrator appointed by the parties shall be borne by each party and the fees of the third arbitrator, if appointed, shall be equally shared by the buyer and seller).