SAP ELECTRO CONTRACTS (PVT) LTD. Vs. THE REIYUKAI

JUDGEMENT

(1.) The present petition has been filed under Sec. 11 of the Arbitration and Conciliation Act, 1996 seeking appointment of sole Arbitrator to adjudicate the disputes inter-se the parties.

(2.) According to petitioner, respondent was awarded the work order for Internal Electrical Works for Institutional Religious Building "Eternal Oasis" for total amount of Rs.82,60,000.00 inclusive of all taxes e.g. Labour Cess, WCT and GST as applicable on the basis of Schedule of Rates enclosed with the work order for supply, installation, testing and commissioning of Internal Electrical Works at the project site and a Contract Agreement was signed with all terms and conditions including BOQ. Petitioner claims to have started the said work according to the specification as per BOQ and satisfaction of respondent's consulting Engineers/Project Managers and thereafter drawings were made final from respondent's side and mobilization advance received. Thereafter on 18/4/2018, respondent awarded new work order to the petitioner for supply, installation, testing and commissioning of High Side Electrical Works Institutional Religious Building "Eternal Oasis" for total amount of Rs.44,25,000.00 exclusive of GST and Labour Cess and contract agreement was also signed with all terms and conditions including BOQ. Again, petitioner started the said work according to the specification as per BOQ and satisfaction of respondent's consulting Engineers/Project Managers and thereafter drawings were made final from respondent's side and mobilization advance received. After the start of work, respondent started providing fresh drawings for those work which was already completed and directed the petitioner to dismantle everything and again carry out the work order according to the new drawings. Petitioner did so for which respondent paid extra to the petitioner. Petitioner raised the running bills for both the work order and paid the GST as per applicable rate and respondent certified the payment and released part payments.

(3.) Suddenly, on 20/5/2021, respondent terminated the contract in violation of the terms and conditions of the GCC clause and work order. Petitioner contacted the respondent and demanded the payment of outstanding amount, however, respondent refused to pay the same. Subsequently, various disputes arose between the parties regarding illegal termination of the contract/work orders and non-payments of outstanding against the certified invoices/bills.