IN THE HIGH COURT OF DELHI AT NEW DELHI
Jyoti Singh, J.
NTPC Limited - Appellant
Versus
Sri Avantika Contractors (i) Limited - Respondent
Original Miscellaneous Petition (Comm) No. 370 of 2017; Interlocutory Application No. 11989 of 2017, 15164 of 2017, 3984 of 2018, 4012 of 2018
Decided On : 08-06-2020
| Table of Content |
|---|
| 1. background of the arbitration contract and disputes. (Para 1 , 2 , 3 , 4 , 5) |
| 2. parties’ arguments regarding responsibility for delays. (Para 6 , 7 , 8 , 9 , 10 , 11) |
| 3. analysis and interpretation of contract clauses. (Para 12 , 13) |
| 4. legal conclusions on the unlawful termination of the contract. (Para 14 , 15) |
| 5. final judgment on claims including overheads and profit. (Para 16 , 17 , 18 , 19 , 20) |
JUDGMENT
Jyoti Singh, J. - Present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "Act") challenging the Award dated 07.07.2017 passed by the Arbitral Tribunal to the extent it has allowed some of the Claims of the Respondent and has rejected the Counter-Claims of the Petitioner herein. Respondent herein was the Claimant before the Arbitrator and the Petitioner was the Respondent.
2. It is the case of the Petitioner that vide letter dated 27.02.2012, NTPC awarded the work of "Site Leveling and Infrastructure Works Package'' for its Kudgi Super Thermal Power Project Stage-I (3x800 MW), Karnataka to the Respondent. Contract Agreement was executed on 02.04.2012 with the value of the work being Rs. 1,54,34,54,426/-. The scheduled period for completion was 30 months with the start date as 27.02.2012 and completion date 26.08.2014.
3. Respondent agreed that it shall provide adequate manpower and equipment at the site and would carry out mobilization of resources within one month of the Letter of Award i.e., by the end of March, 2012. Thereafter, the work of site clearance and leveling in the main plant area was to be started. The reciprocal obligation of the Petitioner to handover the land for construction work was to start after expiry of 30 days from the date of Letter of Award as per Clause 6.0.0 of the Agreement.
4. Respondent committed breach in failing to mobilize its resources within one month and deployed only one official, while the Petitioner handed over approx. 175 acres of land in respect of Block Nos. 1 & 2 and progressively handed over land from April, 2012 onwards which was recorded in the Joint Survey records.
5. Scope of civil work to be executed by the Respondent, included site leveling for the plant; construction of phase roads and drains in plant area; sewerage in plant area; diversion of existing drains; raw water reservoirs; plant boundary wall; watch towers and approach road from State Highway. Subsequently, two Amendments were carried out and the scope of work increased and consequently, the value of work. Petitioner extended the original time period by a further six months i.e., till February, 2015. On 24.03.2014, Petitioner terminated the Contract.
6. Disputes having arisen between the parties, the same were referred to Dispute Resolution Board (DRB), but the decision was not acceptable to both the parties. Respondent, therefore, invoked the Arbitration Agreement on 30.11.2015 and the Arbitral Tribunal, entered upon reference on 23.01.2016. Respondent filed its Statement of Claim raising 36 claims, while the Petitioner filed its Statement of Defence and also raised 16 counterclaims. Respective claims and counter claims are as under:-
"(A) Claims by the Claimant:
Description of Claims
Amount in Rs.
Claim-1: Termination of contract with risk and costs is illegal and arbitrary.
Claim-2: Refund of Performance Bank Guarantee amount illegally encashed by the Respondent.
3,08,69,089
Claim-3: Refund of Mobilisation Advance Bank Guarantee amount illegally encashed by the Respondent.
4,50,00,000
Claim-4: Refund of retention money withheld at 10% of the gross RA bills
5,94,98,878
Claim-5: Refund of Mobilisation Advance recovered from RA Bill
1,08,74,198
Claim-6: Payment of total work done bills
57,01,01,
Alopi Parshad vs. Union of India
Associate Builders vs. Delhi Development Authority
AT Brij Paul Singh & Ors vs. State of Gujrat
Continental Construction Co. Ltd.
Country Club (India) Ltd. vs. Choudhury &Choudhury (India) Ltd.
Dwaraka Das vs. State of Madhya Pradesh & Ors
Dyna Technologies Pvt. Ltd. vs. Crompton Greaves Ltd.
Em & Em Associates vs. Delhi Development Authority
Food Corporation of India vs. A.M. Ahmed & Co.
Gujarat Water Supply and Sewerage Board vs. Unique Erectors (Gujarat) (P) Ltd.
H.B. Gandhi, Excise and Taxation Officer-cum-Assessing Authority vs. Gopi Nath & Sons
H.P. SEB vs. R.J. Shah and Co.
Harsha Constructions vs. Union of India
Himachal Joint Venture vs. Panilpina World Transport
Hind Construction Contractors vs. State of Maharashtra
Indian Oil Corporation vs. Indian Carbon Ltd.
J.G. Engineers Private Ltd. vs. Union of India & Another
Kailash Nath Associates vs. DDA and Anr.
Kuldeep Singh vs. Commr. of Police
Maharashtra State Electricity Board vs. Sterlite Industries (India) Ltd.
McDermott International Inc. and Burns Standards Co. Ltd. and Others
Murlidhar Chiranjilal vs. Harishchandra Dwarkadas & Anr.
National Highways Authority of India vs. Som Dutt Builders-NCC(JV)
P.R. Shah, Shares & Stock Brokers (P) Ltd. vs. B.H.H. Securities (P) Ltd.
Panipat Food Limited vs. Union of India
Rajasthan State Mines & Minerals Ltd. vs. Eastern Engg. Enterprises
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.