LARSEN AND TOUBRO LIMITED Vs. ABHISHEK INDUSTRIES LIMITED

JUDGEMENT

(1.) THIS IS AN APPLICATION UNDER SECTION 9 OF THE ARBITRATION AND CONCILIATION ACT, 1996 (HEREINAFTER CALLED AS "THE ACT") READ WITH SECTION 151 CPC SEEKING THE FOLLOWING RELIEFS:

(2.) A WORK CONTRACT DATED 14.11.2003 WAS EXECUTED BETWEEN THE PARTIES AT LUDHIANA. THE PETITIONER'S CASE IS THAT IT HAD EXECUTED ABOUT 85% OF THE WORK FOR THE RESPONDENT, STILL THE CONTRACT HAD BEEN ILLEGALLY AND ARBITRARILY TERMINATED. THE RESPONDENT OWES SEVERAL CRORES OF RUPEES TO THE PETITIONER UNDER THE SAID CONTRACT BUT THE RESPONDENT HAS INVOKED AND ENCASHED THE BANK GUARANTEE TO THE TUNE OF MORE THAN RUPEES THREE CRORES EXECUTED BY THE PETITIONER IN FAVOUR OF THE RESPONDENT. IT IS FURTHER ALLEGED THAT THE RESPONDENT IS INDULGING IN VARIOUS ACTS OF HIGH-HANDEDNESS SO MUCH SO THAT THE VALUABLE EQUIPMENTS AND MACHINERY OF THE PETITIONER WORTH CRORES OF RUPEES, WHICH IT HAD INSTALLED AT THE CONSTRUCTION SITE, IS STILL LYING THERE AND THE RESPONDENT IS USING THE SAME THROUGH ANOTHER CONTRACTOR.

(3.) IT IS THE CASE OF THE PETITIONER THAT THE CONTRACT DATED 14.11.2003 CONTAINS AN ARBITRATION AGREEMENT FOR THE SETTLEMENT OF THE DISPUTES/DIFFERENCES RELATING TO THE CONTRACT THROUGH ARBITRATION, WHICH IS CONTAINED IN CLAUSE 28, WHICH IS TO THE FOLLOWING EFFECT: