BHARAT SANCHAR NIGAM LTD Vs. S. D. CONSTRUCTIONS

JUDGEMENT

(1.) The instant appeal is against the judgment dtd. 19/2/2018 passed by the Commercial Court (District Level) Raipur whereby the arbitral award dtd. 12/2/2017 passed by the Sole Arbitrator u/s 34 of The Arbitration and Conciliation Act, 1996 was affirmed.

(2.) The brief facts of the case are that on 30/10/2006, a Notice Inviting Tender (NIT) for construction of rehabilitation pole- less activities and associated works in external plant of Raipur City was invited and thereafter in the month of November, 2006 the bids were opened and the tender work was awarded to M/s. S.D. Construction Ambikapur for Rs.1,09,13,400.00. Subsequently, the contract agreement was executed between the appellants and respondent S.D. Construction on 11/6/2007. The contract period was extended from time to time. Firstly it was extended from 11/6/2008 to 10.092008, thereafter from 11/9/2008 to 10/12/2008 and lastly from 11/12/2008 to 31/1/2009.

(3.) The respondent S.D. Construction claimed the amount for enhanced estimated cost, but since it was in dispute, the money was not released with respect to balance payment, as such, the arbitration clause was invoked by the respondent. Since the arbitrator was not appointed, consequently on application being filed u/s 11(6) of the Arbitration and Conciliation Act, 1996 (for short the "Act of 1996"), the sole arbitrator was appointed by this High Court vide order dtd. 13/3/2013 for resolution of dispute between the parties. Pursuant to the arbitration proceedings, the statement of claim was filed by the respondent and thereafter, reply thereto was filed by BSNL/ appellants herein on 7/2/2014. In the meanwhile, the arbitrator laid down the process of business and the affidavit was initially filed by the claimant/respondent on 10/10/2014. Thereafter, the final affidavit was filed on 5/8/2015 in lieu of examination-in- chief and reliance is placed on it. The appellants sought for production of documents from the claimant contractor on 2/1/2016 and also filed an application on 8/5/2016 seeking opportunity to cross-examine the claimant witnesses. The learned sole arbitrator rejected the application of the BSNL/ appellant and subsequent thereto, the affidavit of respondent was filed on 15/7/2016. Thereafter, the arbitral award was passed on 12/2/2017. Being aggrieved by the arbitral award, it was challenged by the BSNL before the Commercial Court wherein the impugned order dtd. 19/2/2018 was passed by the Commercial Court. Hence this appeal.