IRCON INTERNATIONAL LIMITED Vs. SATYA PRAKASH BUILDERS LIMITED

JUDGEMENT

(1.) - Introduction The challenge in this petition under Section 34 of the Arbitration & Conciliation Act, 1996 ('the Act') by IRCON International Limited ('IRCON') is to an Award dated 27th January, 2015 passed by the Sole Arbitrator in the disputes between IRCON and the Respondent - Satya Prakash Builders Limited - arising out of a contract dated 20th December, 2004 for "construction of 811 dwelling units for the Married Accommodation Project ('MAP') for the Ministry of Defence at New Cantonment, Allahabad". Background facts

(2.) The contract was a 'fixed rate contract'. The bid of the Respondent was accepted at 37% above the Bills of Quantity ('BOQ') rates. It is stated that the BOQ rates were to remain firm till completion save and except as provided by statutory variations in tax / cess or imposition of any fresh tax/cess. According to IRCON, the rates were all inclusive. It did, however, provide for payment when quantity varied or when any job included in the BOQ was ordered and executed. The contract also prohibited claiming any damages on account of extension of time (EOT), which too would be granted only if the contract itself was extended.

(3.) The scheduled date of completion was 20 months after the date of the contract, i.e. 4th July, 2006. The contract was completed on 31st December, 2008. According to IRCON, the 51st Running Account ('RA') Bill and Final Bill was submitted by the Respondent on 20th April, 2009 and was paid for on 23rd March, 2009, 20th October, 2009 and 21st November, 2009.