IN THE HIGH COURT OF CALCUTTA
Debangsu Basak, J.
M/s. Ganapati Technology Services P Ltd. - Appellant
Versus
State Fisheries Development Corporation Ltd. - Respondent
Arbitration Petition No. 13 of 2021
Decided On : 03-02-2021
Tender - Construction of Fish Marketing Complex at Nalban Fisheries Project - Arbitration and Conciliation Act, 1996, Section 21 - Ameet Lalchand Shah & Ors. v. Rishabh Enterprises & Anr., (2018) 15 SCC 678; Chloro Controls India Private Limited v. Severn Trent Water Purification INC. & Ors., (2013) 1 SCC 641; Narendra Hirawat & Co. v. Sholay Media Entertainment Pvt. Ltd. & Anr.,2020 SCCOnlineBombay 391; Board of Control for Cricket in India v. KPH Dream Cricket Private Limited,2010 SCCOnlineBombay 1900 - The court discussed the permissibility of a composite arbitral reference, the concept of separate contracts, and the determinability of contracts. The court also referred to the principles established in Ameet Lalchand Shah & Ors., Chloro Controls India Private Limited, and other cases to support its decision.
Fact of the Case:
The petitioner participated in a tender for the construction of Fish Marketing Complex at Nalban Fisheries Project. Disputes arose between the parties due to delays, breaches, and termination of contracts by the respondent. The petitioner sought a single composite arbitral reference for the disputes arising from two separate contracts, while the respondent argued for separate references.
Finding of the Court:
The court found that a composite reference for the disputes and differences arising out of two separate contracts was not maintainable. Consequently, a single petition under Section 9 of the Arbitration and Conciliation Act, 1996 in respect of separate contracts was not maintainable. The court did not decide other contentions of the parties with regard to interim protection.
Issues: The issues involved the permissibility of a composite arbitral reference for disputes arising from two separate contracts and the maintainability of a single petition under Section 9 of the Arbitration and Conciliation Act, 1996 in respect of separate contracts.
Ratio Decidendi: The court held that a composite reference for disputes arising from two separate contracts was not maintainable as the contracts were separate and distinct, and there was no demonstration of a single commercial project. Therefore, a composite reference for the disputes and differences arising out of two separate contracts was not maintainable.
Final Decision: AP 13 of 2021 was disposed of accordingly.
JUDGMENT
Debangsu Basak, J. - The petitioner has assailed notices dated April 22, 2020, August 19, 2020 and December 2, 2020 issued by the respondent and has sought an order directing the respondent to deposit a sum of Rs. 60,12,579/- with the Registrar, Original Side or to furnish security for the value thereof, by this application.
2. Learned Advocate appearing for the petitioner has submitted that, the petitioner participated in a tender of the respondent. The respondent had issued a notice inviting tender dated October 10, 2020 for construction of Fish Marketing Complex at Nalban Fisheries Project. The petitioner had participated in such e-tender. Upon the technical and the financial bids being opened and evaluated, the respondent declared the petitioner as the lowest bidder. The respondent had issued a letter of acceptance dated December 10, 2018 for the construction of Fish Marketing Complex at Nalban Fisheries Project. The parties had entered into and executed a formal agreement. According to the learned Advocate for the petitioner, the respondent did not make over a copy of the formal agreement to the petitioner despite repeated requests and demands.
3. Learned Advocate appearing for the petitioner has submitted that, the respondent could not provide unhindered worksite to the petitioner till middle of March, 2019, despite issuing work order on December 18, 2018. The petitioner could commence work from the middle of March, 2019. The petitioner had completed the RCC casting upto the first floor by September 19, 2019. The petitioner had completed 90% of brick work and plastering work. He has submitted that, despite the petitioner asking the respondent for itemized bill of quantity for electrical and sanitary/plumbing work, in order to procure the materials and executed the work, the same was not provided to the petitioner till May 13, 2020. However, the respondent did not provide the lay out plan for installation of the same. Therefore, the petitioner could not procure the materials and start installation work. He has referred to the correspondence exchanged in this regard between the parties.
4. Learned Advocate for the petitioner has submitted that, the petitioner submitted its 1st Running Account bill by the middle of August, 2019. The respondent however has not paid the 1st Running Account bill. He has submitted that, the 2nd Running Account bill was also submitted which is yet to be paid.
5. Learned Advocate appearing for the petitioner has submitted that, the execution of the project was delayed due to breaches committed by the respondent. The petitioner had requested for extension of time to complete the project by a letter dated December 30, 2019.
6. Learned Advocate appearing for the petitioner has submitted that, the respondent issued another notice inviting tender for work for Cold Chain at Nalban Fisheries Project on December 3, 2018. The petitioner had participated in such e-tender and became successful therein. The respondent had issued a letter of acceptance for the work of Post-harvest Operation and Cold Chain at Nalban Fisheries Project on January 15, 2019 to the petitioner. The respondent had requested the petitioner to execute a formal contract. The parties had executed a formal contract. Again, the respondent did not make over a copy of the formal contract to the petitioner despite requests and demands.
7. Learned Advocate appearing for the petitioner has submitted that, hassle and hindrance free worksite for post-harvest operation and cold chain at Nalban Fisheries Project was not finalized and handed over to the petitioner till April, 2019. After the site was handed over, and the petitioner receiving the layout plan, the petitioner had started construction work from May, 2019. The petitioner had completed the RCC casting upto roof as per the approved drawings. The petitioner had requested the respondent for detailed mechanical layout/elevation plan to enable the petitioner to finalise the equipments
Ameet Lalchand Shah & Ors. vs. Rishabh Enterprises & Anr.
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Indian Oil Corporation Ltd. vs. Amritsar Gas Service & Ors.
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