SIMPLEX INFRASTRUCTURE LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The present appeal arises from the judgment of a learned Single Judge of the High Court of Calcutta by which the respondent's application for condoning a delay of 514 days in filing an application under Section 34 of the Arbitration and Conciliation Act, 1996 ('the 1996 Act') was allowed.

(2.) The appellant, who is a contractor, entered into an agreement for the construction of 821 units of permanent shelters in the tsunami-hit Andaman and Nicobar Islands with the Union of India, represented by the Executive Engineer, Andaman Central Division, Central PWD, Port Blair. The scope of work involved the construction of single storied permanent shelters, including internal water supply, sanitary installation and internal electrification. Due to differences with regard to the performance of the construction work, the parties were referred to arbitration. On 27 October 2014, the arbitrator made an award in favour of the appellant and directed the respondent to pay a sum of Rs. 9,96,98,355/- with simple interest @ 10% per annum from 1 January 2009 till actual payment. The respondent received the copy of the award on 31 October 2014.

(3.) Aggrieved by the award, the respondent filed an application (O.A No.2/2015) under Section 34 of the 1996 Act on 30 January 2015 before the District Judge, Port Blair for setting aside the arbitral award. During the pendency of the arbitration proceedings, the appellant had filed an application (AP No 91 of 2008) under Section 9 of the 1996 Act before the High Court of Calcutta praying for an injunction on encashment of bank guarantee against the respondent and the application was duly contested by the respondent.