MODI CONSTRUCTION COMPANY Vs. IRCON INTERNATIONAL LIMITED

JUDGEMENT

(1.) In the aforesaid Petitions under Sec. 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the A and C Act, 1996) has been filed to challenge the Award dtd. 18/11/2020 with corrections made on 12/12/2020 passed by the Majority Arbitral Tribunal.

(2.) The facts in brief are that Government of Andhra Pradesh awarded a contract for the project "Widening and Strengthening of the Warangal-Karimnagar-Raiputnam Road (APSH 1)" to the respondent. The respondent in turn divided the project into two parts: first sec. from Warangal to Karimnagar (km 06.00 to 66.00) denoted as APSH-1(a) and other from Karimnagar to Raiputnam (km 164.00 to 219.10) denoted as APSH-1(b). For the execution of the contract and works connected to the project, the respondent awarded several contracts to other agencies. The entire work of APSH-1 (a) was entrusted to the petitioner through two contracts, the breakup being, the first one for the widening and strengthening of the Road (excluding Bill No.5 " Bitumen Work and Bill No.8 " Road Furniture) dtd. 5/5/1998 and the second one for the asphalting work involved dtd. 29/8/1998. After entering into above two Contract Agreements, execution of work from both the contracts from km 6.00 to 22.00 was withdrawn from the petitioner and was given to another agency by a tripartite Agreement dtd. 5/8/1999. The petitioner thus, executed work only from km 22.0 onwards.

(3.) During the course of execution of the two contracts, disputes arose between the parties. The Contract provided for referral of disputes to a Disputes Review Board, but it was never constituted by mutual consent. The matter was referred to a Conciliator who was appointed by the Respondent vide letter dtd. 19/8/2003. However, the conciliation proceedings were terminated by the Conciliator on 29/8/2006. Thereafter, the Petitioner invoked Arbitration under clause (Sub Clause 67.3, Conditions of Particular Application) by its letter dtd. 10/5/2007 and eventually three Member Arbitral Tribunal was constituted.