LAWS(CHH)-2020-2-86

ARSS-SIP (JV) Vs. UNION OF INDIA

Decided On February 24, 2020
Arss-Sip (Jv) Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) Annexure P/1 order dated 02.01.2020 terminating the contract awarded to the Petitioner, referring to the laxity and non-attaining any progress in the work is under challenge. It is contended as arbitrary, insofar as the time for completion of the work was being extended from time to time under para 17-A of the General Conditions of Contract (for short 'the GCC') involving a circumstance where the delay is on the part of the Railways/awarder (unlike the case covered by para 17-B where the delay is on the part of the Contractor). Termination of the contract on 02.01.2020 is stated as arbitrary in all respects; since, as per Annexure P/6 dated 07.11.2019, the time to complete the work was extended till 31.03.2020.

(2.) We heard Shri Amrito Das, the learned counsel appearing for the Petitioner as well as Shri H.S.Ahluwalia, the learned Standing Counsel representing the Respondent/Railways.

(3.) The sequence of events reveal that Annexure P/3 notification inviting tender (for short 'the NIT') dated 29.12.2015 was issued by the 2 nd Respondent for various works such as soil investigation, design of bridges, execution of earth work, minor bridges, major bridges, RUBs, extension of FOB, Staff Quarters and other service buildings, supply of ballast and other miscellaneous works in Lajkura-Raigarh section in connection with the construction of 4th line between Jharsuguda-Bilaspur, covering a distance of about 59 KMs. The Petitioner-Joint Venture undertaking participated in the bid and on coming out successful, Annexure P/4 Letter of acceptance (for short 'the LoA') dated 21.09.2016 was issued to them. In furtherance to this, agreement dated 13.06.2017 came to be executed between the Petitioner and the Railways and as per the specific terms, the work had to be completed within a total span of 24 months.