AULIA INFRASTRUCTURE Vs. G.S. EXPRESS PVT. LTD

JUDGEMENT

(1.) This is an application under Sec. 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator.

(2.) The facts, in brief, as projected by the applicant are that the applicant is a proprietorship firm and is regularly and actively engaged in the business of construction works for various governmental/non-governmental tenders and projects. Mr. Shahid Navaz is the proprietor and authorized signatory of the applicant. The respondent company is a construction company, engaged in construction business of various Government and other projects and is represented by its Managing Director Mr. Sandeep Anand. vide agreement no. 31/DL 17-18 dtd. 9/8/2014 (Tender no -18322), the respondent was awarded with the work of construction of Railway Underbridge at Fafadih, Raipur at KM RSD 176-177 (1.036) from the Public Work Department. The respondent executed Memorandum of Understanding, registered and dtd. 5/2/2021 in favour of the Applicant ("MOU"), thereby awarding the execution of the balance construction works for Railway Under-Bridge at Fafadih, Raipur at KM RSD 176-177 (1.036) ("Site") on Sub-contract basis in connection with the Respondent's Agreement No. 31/DL 17-18 dtd. 9/8/2014, Tender No. 18322 with Public Works Department ("PWD"), for a total Value of Rs.25,40,00,000.00 (Rupees Twenty Five Crores Forty Lacs Only).

(3.) Mr. Gary Mukhopadhayay, learned counsel for the applicant submits that the applicant had sincerely executed the work allotted in respect of the Project Site in terms of the MOU and on the basis of instructions issued to by the respondent from time to time. As per the Clause 5 of the MOU, the respondent i.e. GSEPL had the obligation to obtain time extensions from PWD, at which they have failed to obtain promptly on such instances, which has severely hampered the work progress to be carried out by the applicant and thereby also resulting in huge infrastructure costs on account of staff salaries, labour payments, idle charges of the machinery etc. occurred to the Applicant. In respect of the construction work carried out by the Applicant on the site, they had dumped several materials on the site, the ownership of which belonged to the applicant. These materials amounting to Rs.26,50,000.00 were illegally lifted by the Respondent from the Project Site, belonging to and the property of the Applicant, in respect of which the Respondent is liable to pay compensation to the Applicant to the tune of Rs.26,50,000..00