ESSAR PROJECTS (INDIA) LTD Vs. GAIL (INDIA) LTD

JUDGEMENT

(1.) By this order I propose to decide the present petition filed by the petitioners under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of Arbitral Tribunal to adjudicate all disputes between the parties in terms of Clause 59 of the Contract dated 24th December, 2008 (hereinafter referred to as "the Contract").

(2.) The case of the petitioners is that the petitioners Consortium (the Contractor) and respondent (the Employer) entered into the Contract for laying, testing and commissioning of Vijaipur-Dadri Pipeline Section and Associated Facilities (Section-C) for Vijaipur-Dadri-Bawana Pipeline Project of the respondent that was awarded to the consortium on 12th September, 2008.

(3.) It is submitted by the petitioners that while the petitioners consortium has duly fulfilled its obligations under the contract, the respondent and its consultant Engineers India Ltd. (EIL) failed to duly fulfil its obligations. As a result, there was delay in completion of the project for reasons wholly attributable to the respondent and its consultant, due to which the petitioners have suffered a huge loss for which they have unjustly not been compensated by the respondent despite several requests, representations and reminders. As a result, disputes have arisen between the petitioners/contractor and the respondent/employer that can be resolved only through arbitration as agreed by the parties in the said contract dated 24th December, 2008.