CONSORTIUM OF DEEPAK CABLE INDIA LIMITED & ABIR INFRASTRUCTURE PRIVATE LIMITED Vs. TEESTAVALLEY POWER TRANSMISSION LIMITED

JUDGEMENT

(1.) Since factual backdrop is common to the two captioned appeals they are being decided by a common order. Challenge in FAO(OS) No.397/2014 is to the order dated September 03, 2014 passed by the learned Single Judge dismissing application filed by the appellant under Section 9 of the Arbitration and Conciliation Act, 1996 seeking to restrain the respondent from invoking the letter dated May 30, 2014 terminating two Supply and Service Agreements : TPTL/Tower-A1/01 and TPTL/Tower-A2/01 dated February 22, 2010, modified by two Supplementary Agreement(s) dated May 10, 2010; finding a reflection by way of Amendment-1 dated July 05, 2010 to the agreement(s) dated February 22, 2010. Challenge in FAO (OS) No.398/2014 is to an order dated September 03, 2014, dismissing a petition filed by the appellant under Section 9 of the Arbitration and Conciliation Act, 1996, praying that the notice dated May 30, 2014, terminating the two contracts be stayed and the respondent be directed to maintain status quo in respect of the works pending adjudication of the dispute regarding the termination of the contract before an Arbitral Tribunal, since the contract(s) between the parties had an arbitration clause.

(2.) On November 18, 2009 the letter of intent was issued to the appellant resulting in a binding agreement for the Tower Packages A1 and A2, and as per the terms of the offer, requiring the works to be completed by October 17, 2011 for the reason completion time was 23 months.

(3.) Undisputedly, time for completing the works was extended thrice - on November 11, 2011, November 30, 2012 and lastly on July 04, 2013. As per the last extension dated July 04, 2013, the scheduled date for completion of the works was October, 2014; and we take it to be October 31, 2014. While granting extensions no liquidated damages were levied, but the right to levy the same was reserved.