GAIL (INDIA) LIMITED Vs. BANSAL INFRATECH SYNERGIES LIMITED

JUDGEMENT

(1.) Gail (India) Limited (hereinafter 'GAIL') has filed the present petition impugning an arbitral award dated 10.12.2020 (hereinafter 'the impugned award') rendered by an Arbitral Tribunal constituted by Justice (Retd.) Badar Durrez Ahmed as the Sole Arbitrator. The said award was rendered in respect of disputes that had arisen between the parties in connection with the contract for 'Civil and Structural WorksII (OFFSITES)' at GAIL's Petrochemical Complex-II at Pata, Uttar Pradesh (hereinafter 'the Project').

(2.) Gail had appointed Engineers India Limited (EIL) as the consultant for implementation of the Project. EIL invited bids for the Project on behalf of GAIL and the respondent had submitted its bid pursuant to the said invitation. The respondent's bid for a contract value of Rs. 67,09,29,050 /- was accepted and the same was communicated to the respondent by a Fax of Acceptance (FAO) on 31.05.2011. Subsequently, on 14.06.2011, a detailed letter of acceptance (DLOA) was issued to the respondent. The works were required to be completed within a period of seventeen months with effect from the date of issuance of the FOA; that is, by 31.10.2012. The time for completing the works was extended and the respondent finally completed the same on 30.06.2014. Thereafter, on 15.06.2015, the respondent submitted its Final Bill to EIL. The Final Bill was forwarded by EIL to GAIL and payments against the same were made on the recommendations of EIL. The last payment was made to the respondent on 04.10.2017.

(3.) Shortly after receiving the last payment, the respondent invoked the Arbitration Clause and issued a notice dated 12.10.2017. GAIL did not take any steps for either resolving the disputes or constituting the Arbitral Tribunal pursuant to the aforesaid notice, as according to it, there were no disputes between the parties. According to GAIL, the contract stood discharged by accord and satisfaction in view of the No Claim Certificate (hereinafter 'the NCC') issued by the respondent.