SOUTH EASTERN COALFIELDS LIMITED Vs. SHRIKISHAN AND CO ENGINEER AND CONTRACTORS, TAHSIL AND DISTRICT KORBA, CHHATTISGARHLABIC

JUDGEMENT

(1.) This application has been made under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act, 1996') for appointment of arbitrator.

(2.) Briefly stated the facts of the case are that in response to the Notice Inviting Tender (NIT) No. SECL/GA/SO(C)/NIT/05/2240 issued by the Applicants on 05.03.2005, respondent No.1 / Ms. Shrikishan & Co. has participated and its tender was accepted by the applicants/SECL and accordingly the Work Order No. GM(C)/SECL/BSP/WO/GVR/2005/4271 was issued to respondent No.1 /Ms. Shrikishan & Co. on 30.11.2005 and an Agreement bearing No. SECL/BSP/GM(C)/AGT/5/562 was executed between the parties on 02.02.2006 under certain terms and conditions stipulated therein for work of "Black Topping of Coal Tipper Road including maintenance for 03 years from CHP-BSES Junction of Dipka Expansion Project to Dy. GM Office Gevra Project in Gevra Area", District-Korba (C.G.). Total value of contract was Rs. 5,33,10,612.56 and completion period of it was twelve months.

(3.) The aforesaid contract for the said work was cancelled by the Applicants/SECL vide order dated 02.07.2009 as the terms and conditions of the alleged agreement was violated by respondent No.1/Ms. Shrikishan & Co. while forfeiting its EMD, security deposits of Rs. 54,31,698.98/- and directed to pay an amount of Rs. 53,31,061.26/- on account of compensation, i.e., 10% of the total contract value as per the clause 6.2 of the said Agreement.