KAPCO ERECTORS Vs. FLEX ENGINEERING LTD

JUDGEMENT

(1.) M/s Kapco Erectors has filed this petition under Section 34 of the Arbitration and Conciliation Act, 1996 ('Act') challenging an Award dated 28th February 2005 passed by the sole Arbitrator in the disputes between it and the Respondent No. 1 Flex Engineering Ltd. arising out of an order dated 9th February 2001 placed by the Respondent No. 1 on the Petitioner for fabrication and erection of pre-fab steel canopies at its various retail outlets.

(2.) IN terms of the Agreement between the parties, pre-fab steel canopies were to be erected by the Petitioner at the following stations:-

(3.) THE Petitioner states that it wrote a letter to the Respondent No. 1 on 10th April 2001 pointing out to the various difficulties faced by the Petitioner in carrying out the work successfully. It is stated that Respondent No. 1 neither released the balance payment nor permitted the Petitioner to complete the work. Further the specifications and drawings were changed arbitrarily as a result of which the Petitioner was unable to collect the roofing material for which the Petitioner had already paid advance. By letters dated 21st August 2001 and 27th October 2001 the Respondent No. 1 informed the Petitioner that they were trying to sort out the problems with the executives of M/s BPCL and would inform the Petitioner thereafter. After no further payment was received, the Petitioner sent a legal notice dated 15th April 2002 in response to which the Respondent No. 1 terminated the contract. THE disputes between the parties were referred to the arbitration of the sole Arbitrator.