DLF LTD. Vs. IL&FS ENGINEERING AND CONSTRUCTION COMPANY

JUDGEMENT

(1.) The present petition has been filed under Sec. 11 of the Arbitration and Conciliation Act, 1996 ("Act of 1996", hereinafter) seeking appointment of a sole arbitrator for the resolution of disputes between the parties under a Contract dated June 21, 2012.

(2.) At the outset, I may briefly narrate the facts which have lead to the filing of the present petition. The petitioner entered into a cost sharing agreement with Haryana Urban Development Authority ("HUDA", hereinafter), for external development works for improvement of certain road networks in Gurgaon, Haryana. The respondent presented itself as a prominent infrastructure development company to the petitioner and based on its representation, the petitioner awarded development works to be carried out in the project to the respondent.

(3.) Subsequently, the petitioner entered into a separate contract agreement dated June 21, 2012 ("contract", hereinafter) with the respondent. The term of the contract period was for 24 months and total price of the contract was Rs.394,30,00,000.00. However, the said project was not completed because of various defaults on the part of the respondent, and the project timelines were extended till June 30, 2017. A major portion of the works were de-scoped, vide agreement dated May 11, 2018 as the respondent was unable to complete the work on time and further did not carry out the maintenance works; which in terms of the contract, the respondent was liable to do for five years. The maintenance work of the project is still ongoing and is being carried out through some other agencies at the risk and cost of the petitioner. Due to the delay caused by the respondent, and the subsequent de-scoping, the petitioner incurred additional expenses. The respondent also failed to adhere by the quality and safety norms set out in the agreement and the petitioner even imposed a fine on the respondent for its failure to adopt the safety measures in terms of the contract.