DEVI CONSTRUCTIONS Vs. FOWLER WESTRUP (INDIA) PRIVATE LIMITED

JUDGEMENT

(1.) The petitioner has filed a present Civil Miscellaneous Petition under the provisions of Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short the 'Act') for appointment of Sole Arbitrator to adjudicate the dispute between the parties in terms of clause 1.5.4.36 of the agreement entered into between the parties on 22/10/2011.

(2.) It is the case of the petitioner that the petitioner is a Partnership Firm engaged in the business of construction and property development. The respondent was desirous of having its factory constructed in Malur, Karnataka and consequently had floated a tender on 17/08/2011 inviting bids for the construction project. The petitioner's Associate Company by name M/s. URC Constructions Private Limited., had participated in the tender and submission of tender was made on 26/08/2011 and final offer was finalized on 26/09/2011 and M/s. URC Constructions Private Limited was declared as a successful bidder. Thereafter, the successful bidder has requested the respondent that the contract be executed by the petitioner in their final offer letter dated 26/09/2011. Accordingly, both the parties have entered into an agreement (construction contract agreement) dated 22/10/2011. The details of the work to be executed and the manner it had to be carried out were detailed in the said agreement. Clause 16(b) of the said agreement makes it clear that all other conditions governing the relationship between the petitioner and the respondent would be as per the tender document. In addition to the work order dated 22/10/2011, the petitioner and the respondent entered into an agreement, which clearly stated that all previous contract documents floated by the petitioner in conjunction with addendum to the tender document would be deemed to form and be read and construed to be a part of the agreement dated 22/10/2011.

(3.) It is further case of the petitioner is that the work order dated 22/10/2011 stipulates that the commencement of work was 15 days from the date of issue of work order and date of completion was 13/07/2012 i.e., 250 days from the date of issue of work order including mobilization period. The contract amount as per the work order was Rs.30,65,51,682/-. It is also the terms of the contract under 2.9 of the conditions of the contract clause-9 that the contractor shall also conform exactly, fully and faithfully to the designs, drawings and instructions in writing relating to the work signed by the project consultant or other competent Authority.