BHARAT ALUMINIUM COMPANY Vs. ENGINEERING PROJECTS INDIA

JUDGEMENT

(1.) Writ petitions under Article 226 and 227 of the Constitution of India W.P. No.1398 of 2002 (for short "the first petition") & W.P. (C) No.1781 of 2007 (for short "the second petition"), involve the same question of law and common facts and as such they are being considered and disposed of by this common order. However, for the purpose of this order the facts, as mentioned in the first petition are being referred.

(2.) The indisputable facts, in nutshell, as projected by the petitioner - Bharat Aluminium Company Ltd. (for short "BALCO"), are that vide invitation to tenders dated 6-11- 1997 & 7-11-1997 (Annexures - P/1 & P/2, respectively to the first petition), BALCO invited tenders from the interested parties for civil and structural works for installation of New Cold Rolling Mills Project at Korba Aluminium Complex. Pursuant to the said tender notices, the respondent - Engineering Projects (India) Limited (for short "EPIL") submitted its offer to the aforesaid works on 23-12-1997 & 24-12-1997 (Annexures - P/3 & P/4, respectively to the first petition). On due consideration, vide letter of intents dated 16-7-1998 (Annexures - P/5 & P/6 to the first petition) BALCO placed the order in favour of EPIL. Thereafter, both the companies executed agreements on 7-1-1999 & 1-2-1999 (Annexures - P/7 & P/8, respectively to the first petition). Under clause 9.22.1 of the general terms & conditions of the contract i.e. Schedule 9 of the contract agreement, they agreed to resolve the disputes and differences arising out of contract by way of arbitration (for short "the arbitration agreement") (Annexure - P/9 to the first petition).

(3.) On 2-3-2001 Government of India divested 51% of its shareholding in BALCO in favour of Sterlite Industries (India) Ltd. (for short "Sterlite") and accordingly the management of BALCO was transferred in favour of Sterlite. Therefrom BALCO has ceased to be a Public Sector Undertaking (for short "PSU"), and became joint venture.