LAWS(DLH)-2013-7-13

HINDUSTAN CONSTRUCTION COMPANY LTD Vs. IRCON INTERNATIONAL LTD

Decided On July 01, 2013
HINDUSTAN CONSTRUCTION COMPANY LTD Appellant
V/S
IRCON INTERNATIONAL LTD Respondents

JUDGEMENT

(1.) By this common order, I propose to decide the two abovementioned petitions filed by the petitioner, under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act") for appointment of an independent person as sole Arbitrator for resolving the disputes and differences which have arisen between the parties in relation to Contract Nos.IRCON/1014/J&K.KQ/Zone-VB/60 and IRCON/1014/J&K.KQ/ZoneVA/59, dated 18th February, 2006.

(2.) In Arb.P.No.31/2013, the petitioner raised the principal claim for additional cost and expenses incurred during the extended period of the contract from 24th April, 2009 to 28th February, 2011 amounting to Rs. 48,88,96,602/- whereas in Arb.P.No.32/2013, the claim for additional cost and expenses incurred during the extended period of the contract from 10th April, 2009 to 28th February, 2011 amounting to Rs. 64,36,06,524/- was raised, before the Engineer in Charge as well as the respondent on various occasions, including the claim for rate revision of excavation due to instructed change in methodology for south portal excavation amounting to Rs. 5,37,48,687/-.

(3.) Various attempts have been made by the parties through correspondences and meetings. However, dispute between the parties could not be resolved. On 12th June, 2012, the respondent had rejected the petitioner's claim for additional cost and expenses incurred during the extended period. The petitioner issued notice of dispute dated 28th June, 2012 to the respondent which was delivered in person to the General Manager of the respondent at its office on 20th July, 2012. There was no response to the said notice of dispute.