PUNJ LLOYD LTD. Vs. GAIL INDIA LTD.

JUDGEMENT

(1.) This is a suit for recovery of Rs.29,15,07,084.80/ - filed by the plaintiff/M/s Punj Lloyd Ltd against the defendant/Gail India Ltd. The suit amount claimed is the amount which the defendant has deducted towards interim liquidated damages as per Clause 57.2 of the Special Conditions of Contract (SCC). Putting it in other words the plaintiff claims through this suit the value of the work done by the plaintiff for the defendant but unpaid to the plaintiff on account of the liquidated damages deducted by the defendant for interim stages delays in completion of works in exercise of defendants rights under Clause 57.2 of the Special Conditions of Contract (SCC) from the bills of the plaintiff.

(2.) The facts of the case are that the defendant was to lay down gas pipelines for transportation of re -gasified natural gas originating from Petronet LNG Terminal at Dahej in the State of Gujarat and terminating at Vijaipur in the State of Madhya Pradesh. The laying of the pipelines and other associated facilities was called the DAHEJ -VIJAIPUR Pipeline Project (DVPL Project) and the same comprised of four spreads/parts. These four parts called spreads as per the invitation for bids were as under: -

(3.) Plaintiff submitted its bid for spreads I, II and III from DAHEJ to Jagoti for a pipeline length of 423 kms comprised in spreads I, II and III. Plaintiff also submitted bids for overall commissioning of the four spreads for the DVPL Project. Plaintiff was awarded the laying of pipeline work for the spreads I, II and III. Spread IV was awarded to another bidder M/s RNGS. Plaintiff was however awarded the commissioning contract for the entire DVPL Project for all the four spreads. The defendants Fax of Intent (FOI) intimating the plaintiff with respect to grant of contract for laying of the pipelines for the three spreads and for the commissioning of the entire pipelines of the four spreads is dated 5.5.2003 (Ex.PW2/2). The detailed Letter of Acceptance is dated 14.5.2003 (Ex.PW2/3). The Contract Agreement is dated 31.5.2003 (Ex.PW2/4). As per the contract awarded to the plaintiff for spreads I, II and III for laying pipeline, the completion schedule/period prescribed was as under: -