1. The applicant-Company which is involved in the business of construction as contractor was awarded a contract by the Indian Oil Corporation Limited for main line laying works for 132 KM 32" dia Cross Country R-LNG and combine 1 station works for Dadri-Panipat R-LNG pipeline project as per the Work Order dated 12. 2008. The applicant has given a part of the work to the respondent being the sub-contractor under the letter of intent dated 19. 2008. By a subsequent letter of intent dated 111. 2008, the work of submerged crossing and cased crossing work was entrusted to the respondent and thereafter, a Work Order was issued on 12. 2008, as per which the work should be completed before 10.01.2009.

2(a). As per the terms, if the work is delayed beyond the time, the applicant is entitled for liquidated damages at the rate of 1% per week subject to the maximum of 5% of the contract value. The work order also provides for arbitration and it is also stated that the Courts in Chennai only will have jurisdiction. The respondent has to arrange for adequate equipments along with tools and tackles, spares and also manpower with experienced operators, Engineers and Supervisors to ensure