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IN THE HIGH COURT OF DELHI
Vibhu Bakhru, J.
Sagar Constructions - Appellant
Versus
Govt. of NCT of Delhi - Respondent
Arb.P. 856 of 2021
Decided On : 06-10-2021
JUDGMENT
[Hearing Held Through Video conferencing]
Vibhu Bakhru, J. (Oral)--The petitioner has filed the present petition under Section 11 of the Arbitration & Conciliation Act, 1996 (hereafter the `A&C Act'), inter alia, praying that an Arbitrator be appointed to adjudicate the disputes, which have arisen between the parties.
2. By a letter dated 10.11.2014, the respondent awarded the work of construction of twelve numbers SPS type (D/S) class rooms with toilet block and staircase at Government Co-Ed. School B-4, Paschim Vihar, New Delhi, to the petitioner. The said work was to be completed within a period of four months from the date of the Letter of Acceptance (LoA), that is, on or before 19.03.2015.
3. The petitioner completed the said works on 16.03.2015.
4. The petitioner claims that the respondent had failed and neglected to release the payment due in respect of the aforesaid Contract. In the said context, the petitioner issued a letter dated 23.02.2016 requesting the concerned Superintendent Engineer to resolve the disputes and/or take further steps in accordance with Clause 25 of the General Conditions of Contract (GCC) as applicable to the Contract between the parties. Thereafter, the petitioner also approached the Chairman of the Dispute Resolution Committee (DRC) in terms of Clause 25 of the GCC. However, the disputes remain unresolved.
5. Thereafter, by letters dated 10.09.2018 and 11.12.2019, the petitioner requested the concerned Chief Engineer to appoint an Arbitrator for adjudication of the disputes. The petitioner's request for the appointment of an Arbitrator was denied on the ground that the petitioner had not invoked the Dispute Resolution Clause within a period of one hundred and twenty days from the date of preparation of the Final Bill.
6. Mr. Khan, learned counsel appearing for the respondent, submits that the claims made by the petitioner are also barred by limitation as the same were made beyond the period of three years from the date of completion of the work. Clause 25 of the GCC, which is applicable to the Contract in question, reads as under:
"CLAUSE 25
Except where otherwise provided in the contract, all questions and disputes relating to the meaning of the specifications, design, drawings and instructions here-in before mentioned and as to the quality of workmanship or materials used on the work or as to any other question, claims, right, matter or thing whatsoever in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works or the execution or failure to execute the same whether arising during the progress of the work or after the cancellation, termination, completion or abandonment thereof shall be dealt with as mentioned hereinafter:
(i) If the contractor considers any work demanded of him to be outside the requirements of the contract, or disputes any drawings, record or decision given in writing by the Engineer-in-Charge on any matter in connection with or arising out of the contract or carrying out of the work, to be unacceptable, he shall promptly within 15 days request the Superintending Engineer in writing for written instruction or decision. Thereupon, the Superintending Engineer shall give his written instructions or decision within a period of one month from the receipt of the contractor's letter.
If the Superintending Engineer fails to give his instructions or decision in writing within the aforesaid period or if the contractor is dissatisfied with the instructions or decision of the Superintending Engineer, the contractor may, within 15 days of the receipt of Superintending Engineer's decision, appeal to the Chief Engineer who shall afford an opportunity to the contractor to be heard, if the letter so desires, and to offer evidence in support of his appeal. The Chief Engineer shall give his decision within 30 days of receipt of contractor's appeal. If the
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The main legal point established in the judgment is that failure to follow the prescribed procedure and a claim being hopelessly barred by time can lead to the dismissal of a petition seeking the con....
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