Arb. P. No.499/2015; OMP (I) Nos.290/2015 & 416/2015

Page 1 of 16

$~

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

+

ARB. P. 499/2015

+ OMP (I) 290/2015 & IA Nos. 16141/2015, 23120/2015, 850/2016

GEO MILLER & CO. PVT. LTD.

..... Petitioner

Through:

Mr. S.D. Singh, Mr. Rahul K. Singh &

Mr. Jitender Singh, Advocates.

versus

BIHAR URBAN INFRASTRUCTURE DEVELOPMENT

CORPORATION LIMITED & ANR

..... Respondents

Through:

Ms. Shilpa Singh & Mr. Rahul

Madhvani, Advocates.

+

OMP (I) 416/2015

PATNA WATER SUPPLY DISTRIBUTION

NETWORKS PVT. LTD. & ANR

...... Petitioners

Through:

Mr. S.D. Singh, Mr. Rahul K. Singh &

Mr. Jitender Singh, Advocates for

Petitioner No.2.

versus

UNITED BANK OF INDIA & ANR

..... Respondents

Through:

Mr. Pankul Nagpal, Advocate for R-1.

Ms. Shilpa Singh & Mr. Rahul

Madhvani, Advocates for R-2.

CORAM: JUSTICE S. MURALIDHAR

O R D E R

%

06.12.2016

1. These three petitions arise out of a common set of facts and are being

disposed of by this common order.

Arb. P. No.499/2015; OMP (I) Nos.290/2015 & 416/2015

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2. Arb. P. No.499/2015 is a petition under Section 11(6) of the

Arbitration and Conciliation Act, 1996 ('Act') filed by Geo Miller &

Co. Pvt. Ltd. ('Geo Miller') against Bihar Urban Infrastructure

Development Corporation Limited (BUIDCO) seeking appointment of

an Arbitrator to adjudicate the disputes between the parties arising out of

a notice inviting tender (NIT) floated by BUIDCO for design,

construction, installation, commissioning, management, operation and

maintenance of intake, RWPH, 220 MLD water treatment plant and

water supply distribution network in Patna, Bihar.

3. OMP (I) No.290/2015 is a petition under Section 9 of the Act filed by

Geo Miller against BUIDCO and its Managing Director (MD) seeking

the setting aside of orders dated 26^th October, 2013 and 27^th May, 2015

relating to the debarment and blacklisting of Geo Miller. It seeks other

interim reliefs incidental thereto including staying the operation of the

said orders.

4. OMP (I) No. 416/2015 is by Patna Water Supply Distribution

Networks Pvt. Ltd. (PWSDNPL), a special purpose vehicle (SPV)

constituted by the joint venture (JV)/consortium of Geo Miller and

Gammon India Limited (Gammon India), which was in fulfilment of the

essential condition of the said consortium being awarded the

aforementioned contract. The main prayer as far as OMP (I) No.

416/2015 is concerned is to quash the invocation letter dated 7^th August,

2015 issued by BUIDCO seeking to encash the bank guarantee (BG)

dated 15^th September, 2012 for a sum of Rs.2,48,00,950.00 issued in

favour of BUIDCO. For easy reference, PWSDNPL, the Petitioner in

Arb. P. No.499/2015; OMP (I) Nos.290/2015 & 416/2015

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OMP (I) No. 416/2015, will hereafter be referred to as the SPV. In the

said petition by an order dated 10^th August, 2015 an interim order was

passed restraining the issuing bank, i.e., United Bank of India (UBI)

from releasing the said BG to BUIDCO unless such payment had

already been made.

5. This is effectively the second round of litigation. The background

facts are that bids were invited by BUIDCO for the above project on a

design, build and operate basis. Geo Miller and Gammon India formed

a consortium by entering into an inter se agreement on 12^th January,

2012. Under Clause 8.1 it was stated that both Geo Miller and Gammon

India as members of the said consortium “shall at all times, until

completion of the Project, be liable jointly and severally for all

obligations under the Project to the Employer.” Further they were to be

individually responsible for the performance of the project and to bear

all technical, commercial and financial risk involved with therein. The

lead member of the consortium was Gammon India holding 74% equity

and Geo Miller held 26% equity participation. The said consortium