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ANAND PATHAK
Sugam Constructions (P) Ltd. – Appellant
Versus
Union of India through Secretary, Ministry of Railways, New Delhi – Respondent
ORDER :
1. The present application is preferred by applicant under Section 11 of Arbitration and Conciliation Act, 1996.
2. Precisely stated facts of the case are that applicant is a Private Limited Company registered under the Companies Act, 1956 and is engaged mainly in the work of Civil Construction and specializes in construction of railway related works. Respondent No. 1-is the Union of India, Ministry of Railways and invited the bid for tender for construction of road under a bridge in lieu of level crossing No. 429 between STLI-DHO Section (by box pushing method) vide its notice dated 9/10/2013. Respondents No. 2 and 3 are the Officers of North Central Railways.
3. Respondent No. 1 issued Notice Inviting Tender (NIT) on 9/10/2013 for construction of road as referred above in which applicant responded by quoting its rates vide letter dated 19/11/2013 and negotiations ensued. Later on work was awarded to applicant vide letter dated 24/2/2014 vide Annexure A/2. Letter of Acceptance (LOA) was issued on 7/4/2014 in which applicant was directed to deposit Performance Guarantee (PG) as per subject condition of Contract (Part 1).
4. Applicant completed the formalities as per the contrac
Disputes arising from a construction contract are arbitrable, and failure to follow conciliation procedures does not bar the appointment of an arbitrator.
The court upheld the right to arbitration as per the terms of the contract, emphasizing the importance of adherence to contractual dispute resolution mechanisms.
The court emphasizes the right to arbitration under the contractual agreement when disputes arise, affirming the appointment of arbitrators for effective resolution.
The court emphasized the requirement for the arbitrator to assign reasons in support of the award and the limited scope of interference by the court in arbitration awards.
The Arbitral Tribunal has considerable discretion in evaluating evidence and interpreting contract clauses, and its decision cannot be interfered with unless found to be patently illegal or in confli....
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