WISHWA MITTAR BAJAJ Vs. BPTP LTD

JUDGEMENT

(1.) THIS is a petition under Section 11 (5) of the Arbitration and Conciliation Act, 1996 ('Act') filed by the Petitioner Wishwa Mittar Bajaj and Sons (Constructions) Private Limited seeking reference to arbitration of its disputes with the Respondent BPTP Limited arising out of a contract awarded by the Respondent to the Petitioner for construction of Towers (G, H, J and K) for Park Grandeura-Group Housing Project at Sector-82, Faridabad to the Petitioner by a letter of intent dated 18th April 2007.

(2.) THE case of the Petitioner was that the non-completion of the work was attributable to the Respondent; payments of outstanding bills/R.A. bills were not made on time and there was delay in supply of ready mix cement as well as steel. According to the Petitioner although it continued to perform its obligations, the Respondent asked it to stop work on 30th April 2010 and foreclosed the contract. THE Petitioner states that it submitted the final bill for the tower area for a sum of Rs.63,54,506.01 and for the non-tower area for a sum of Rs.9,88,628.71. THE Petitioner further states that since it was in desperate need of finances, it accepted the final bill for the tower area for a sum of Rs.16,59,640 and the non-tower area for a sum of Rs. 5,14,106 by letters dated 17th July 2010 addressed to the Respondent. However, despite the Petitioner accepting a substantially reduced amount, the Respondent did not release payments and the final instalment of the payment in terms of the reduced final bill was made only in April 2011.

(3.) IN its reply filed on 2nd February 2012, the Respondent states that after the parties executed the settlement deed on 11th April 2011 on the basis of the joint measurement of the work, the dues of the Petitioner had been fully and finally settled. Reference is also made to the indemnity bond executed by the Petitioner on the same date. The Respondent denied the allegation that the Petitioner was under pressure to give the undertaking. Reference was made to the decision of the Supreme Court in National INsurance Company Limited v. Boghara Polyfab Private Limited (2009) 1 SCC 267. It is further stated that in its letter dated 23rd April 2011 the Respondent refuted the allegation that the Petitioner was put under duress and coercion to sign the indemnity bond and affidavit.