AJANTA BUILDERS Vs. BHARAT HEAVY ELECTRICALS LTD

JUDGEMENT

(1.) Disputes arose between M/s Ajanta Builders, the petitioner herein who was the claimant before the arbitrator on the one hand and M/s Bharat Heavy Electricals Limited, respondent on the other, in respect of a contract awarded as a sub-contractor to the petitioner by the respondent. This matter was referred for arbitration to Justice Y.V.Chandrachud (Retired) who made and published an award dated 8th November, 1997. This award was filed before this court by the petitioner herein and has been registered as Suit No. 2520A/1997. The petitioner herein has filed objection to this award under Sections 30 and 33 of the Arbitration Act, 1940 which have been registered as IA 1497/1998. By this order, I propose to dispose of this suit and application.

(2.) The respondent had invited tenders for construction of 67.6 MW capacity power units at Rajghat, New Delhi numbering two for implementation of a turn key contract which was awarded to it by the then Delhi Electric Supply Undertaking on cost plus percentage basis. The petitioner herein submitted an offer on 15th May, 1986 which was accepted by the respondent. A letter of intent was issued by the respondent on 13th November, 1986. The total value of the work which was initially Rs. 4,75,75,173.00, was increased to Rs. 6,51,76,800/-. A formal contract was signed by the parties on 18th February, 1987 wherein, it was stipulated that the date of commencement of the contract would be 13th November, 1986 while it was to be completed within eighty two weeks i.e. before 8th June, 1988.

(3.) The petitioners attributed delays to the respondent resulting in it becoming impossible for the petitioner to execute the work according to the prescribed schedule. The respondent terminated the contract by a letter dated 10th August, 1988 with effect from 29th July, 1988. As a result of the default on the part of the respondent, the petitioner raised claims against the respondent before the arbitrator.