SENBO ENGINEERING LTD Vs. AHLCON READY MIX CONCRETE

JUDGEMENT

(1.) The challenge in this petition under Section 34 of the Arbitration and Conciliation Act, 1996 ('Act') by Senbo Engineering Ltd. ('SEL') is to an Award dated 1st August 2011 passed by the learned Sole Arbitrator allowing the claims of the Respondent Ahlcon Ready Mix Concrete ('ARMC'), a Division of Ahluwalia Contracts (India) Ltd. ('ACIL') which was succeeded by Ahlcon Ready Mix Concrete Pvt. Ltd. ('ARMCPL'). By the impugned Award, the learned Arbitrator held that SEL should pay the Respondent Rs. 1,11,49,108/-, consolidated costs of Rs. 1,12,000/- and interest on Rs. 81,98,063/- at 9% per annum with effect from 1st August 2011 till realization. By the said impugned Award all the counter-claims of SEL were rejected.

(2.) On 20th February 2006 SEL was awarded the contract of BC-2 Project by the Delhi Metro Rail Corporation ('DMRC'). According to the SEL, O.M.P. No. 898 of 2011 Page 1 of 13 it required ready mix concrete ('RMC') to enable it to meet the deadline for the completion of the DMRC project. For this purpose on 28th February 2007 a Memorandum of Understanding ('MoU') was entered into between SEL and ARMC, a Division of ACIL. Certain clauses of the MoU which are relevant for the present dispute read as under:

(3.) The responsibilities of SEL under the MoU were inter alia to plan and O.M.P. No. 898 of 2011 Page 3 of 13 procure requisite quantities of the raw materials, viz., cement, coarse aggregates, sand and admixture required for the manufacture and processing of RMC, ensuring that quality specifications for manufacture and processing of RMC of DMRC are met from the Laboratory of the Respondent, provide indent to the Respondent for manufacture and processing of RMC on a regular basis. Among the responsibilities of the Respondent was to ensure uninterrupted manufacture, processing, transportation and pumping of RMC on 24-hour basis, seven days in every week, manufacture, process, transport and pump the said RMC strictly in accordance with the technical specifications provided by the DMRC, providing SEL with existing warehouse for manufacturing and allied facilities at the site, providing all the existing manufacturing and infrastructural facilities at the site to SEL.