SUGAM CONSTRUCTION P LTD Vs. NORTHERN RAILWAY ADMINISTRATION

JUDGEMENT

(1.) THIS is a petition under Section 11(5) of the Arbitration and Conciliation Act, 1996 ('Act') filed by the Petitioner Sugam Construction Private Limited seeking the appointment of an Arbitrator in the disputes between the Petitioner and the Respondent Northern Railway Administration arising out of an agreement dated 3rd October 2001 for the execution of the work of design and construction of New Box culvert No. 469-A consisting 01 No. of RCC twin box with internal dimension (opening) of 2 x 3.80 m x 3.80 m under railway track at km. 684/12-14 between Jeonathpur and Ahraura Road stations on Mughalsarai ­ Allahabad section by Box Pushing method on Allahabad Division under Contract bearing 75-W/48/Dy.CE/C/ALD.

(2.) THE case of the Petitioner is that the Respondent created hindrances and acted in breach of its obligations. As a result, the contract was closed on administrative grounds. Despite the Petitioner's letter dated 10th November 2005 to the Respondent listing out in detail its various claims arising out of the contract amounting to over Rs. 4 crores, the Respondent failed to pay the outstanding amounts. By a letter dated 1st July 2006 the Petitioner called upon the Respondent to appoint an Arbitrator. THEreafter, the present petition was filed on 7th March 2008.

(3.) A rejoinder was filed by the Petitioner on 8th May 2012 stating as under: