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2005 Supreme(Del) 363

High Court Of Delhi
TECHNO CONSTRUCTION - Appellant
Versus
KUNJ VIHAR CO-OPERATIVE GROUP HOUSING SOCIETY LTD. - Respondent
O.M.P. : 337 of 2004
Decided On : 03/16/2005

Advocates Appeared:
A.MAITRI, NIRAJ MALHOTRA, P.N.LEKHI, Valmiki Mehta

Headnote:Arbitration and Conciliation Act, 1996 - Section 9 — Petition by contract seeking ad interim injunction against termination of construction agreement — The contract for construction of building not liable to be specifically enforced under specific Relief Act, 1963 — Interim injunction effected and arbitrator appointed for adjudication of dispute.

S. K. Agarwal, J.

( 1 ) BY this petition under Section 9 of the Arbitration and Conciliation Act, 1996 (for short, the act), M/s Techno Construction, through one of its partners, has prayed for ad-interim injunction restraining M/s Kunj Vihar Co-operative Group Housing Society Ltd. (hereinafter, respondents ) from terminating the construction agreement dated 13. 11. 2001 and restraining them from awarding the contract for completion of the unfinished work, under the said agreement to any third party till the conclusion of arbitral proceedings between the parties.

( 2 ) THE facts in brief necessary for the disposal of this petition are as follows. The respondents floated tender for construction of high-rise, residential flats at Plot No. 19, Sector -12, Dwarka, New Delhi (hereinafter, the site ). Petitioners tender was accepted and on 13. 11. 2001 an agreement was executed, in respect of the construction work (hereinafter, the Agreement); possession of the site was given to them and they commenced the construction and completed about 50% of the work in one year. Petitioners in the course of construction raised 13 (thirteen) running bills, which were duly paid. It is pleaded that petitioners continued to work and in the month of August, 2004, bills amounting to Rs. 80,00,000/- remained outstanding. Petitioners approached Secretary of the respondents -society for getting the dues cleared, who assured that the payment would be made in due course. However, nothing was done and petitioners were forced to lodge a report against Secretary to the President of the society and impressed upon him to clear the bills, expeditiously. On or about 10. 9. 2004 petitioners ca me to know that the secretary was planning to award the work under the agreement to some third party (Swati Housing Construction, NIC, New Delhi), without following the procedure of inviting the tender. It was also learnt that he had some vested interest in awarding the work to the third party; and even feelers were sent to them through the Treasurer of the society saying that if the petitioners agree to relinquish remaining part of the contract, then the society can expeditiously settle the unpaid bills. It is also pleaded that on 19. 9. 2004, petitioners received letter dated 15. 9. 2004 from society where they were asked to remove material, equipments and labour from the site and hand over the possession of the site to the society, within ten days. Petitioners tried to resolve the differences but in vain. It is pleaded that petitioners made huge investment in the project and that the stand taken by the society is unreasonable and illegal and that the material worth cores of rupees is lying at the site, and it was physically impossible to remove all the material and equipment within the time given. It was further pleaded that there were about 250 labourers and 30 other staff working at the site and it was not possible to absorb them.

( 3 ) IT is further pleaded that clause 40 of the Agreement provides for resolution of the disputes through arbitrator. Petitioners have issued notice to the respondent under Section 11 of the Act for appointment of an Arbitrator and petitioners apprehended that respondents may not frustrate arbitral process by awarding the contract to any third party and thus prayed for an interim injunction pending adjudication of their respective rights. In support of this petition, petitioners filed photocopies of the tender documents Annexure P2 (at pages 17 to 84 ). The respondents filed reply inter alia pleading that the documents filed by the petitioners are forged and fabricated. The clause 40 of the contract provides for termination of the contract upon dissolution of firm which is missing in the documents filed by petitioners. The respondents in support of reply filed original agreement (pages 116 to 178) and the articles of agreement (pages 180-182 ).

( 4 ) THE parties have also filed contempt petition against each other under Article 215 of the
















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