RAGHUVIR BUILDCON PVT LTD Vs. IRCON INTERNATIONAL LIMITED

JUDGEMENT

(1.) By order dated 11th October, 2019 in OMP (I) (Comm) 336/2019, OMP (I) (Comm) 337/2019 and order dated 14th October, 2019 in OMP (I) (Comm) 343/2019, a learned Single Judge of this Court referred the disputes, arising between the appellant and the respondent, to arbitration by an eminent retired Chief Justice of the High Court of Jammu and Kashmir. The appellant is the claimant in the said arbitral proceedings, and the respondent before me is also the respondent therein. These appeals, under Section 37(2)(a) of the Arbitration and Conciliation Act, 1996 ("the 1996 Act") impugn the order, dated 5th March, 2021, passed by the learned Arbitrator on applications, preferred before him by the respondent under Section 16 of the 1996 Act.

(2.) The offer of the appellant, in response to the notice, dated 24th March, 2019, of the respondent, inviting tenders for certain civil works, was accepted by the respondent vide Letter of Acceptance dated 11th May, 2017. As required by the conditions stipulated in the notice inviting tender and the Letter of Acceptance, Performance Bank Guarantees No 17793BG00038, 17793BG00040 and 17793BG00041, dated 17th July, 2017, 31st August, 2017 and 31st August, 2017 respectively (collectively referred to, hereinafter, as "the BGs") and extended subsequently, were furnished by the appellant. Formal contracts, between the appellant and the respondent were executed on 26th September, 2017. Clauses 8.4, 50 and 50.2 of the General Conditions of Contract (GCC) are relevant, and the relevant parts thereof may be reproduced thus:

(3.) In respect of packages SS3-A, SS3-B and SS2-C, of the work allotted to the appellant under the aforesaid contracts, the respondent issued, in the first instance, 7-day notices of default and, in the second, 48 hour notices of default, after which the contract was terminated. The dates of the 7-day notices, 48 hour notices and notices of termination, in respect of these three packages, may be depicted, in a tabular form, thus: