BHARAT HEAVY ELECTRICALS LIMITED Vs. GARG BUILDERS

JUDGEMENT

(1.) Bharat Heavy Electricals Limited (hereafter 'BHEL') has filed the present petition under section 34 of the Arbitration and Conciliation Act, 1996 (hereafter 'the Act') assailing the arbitral award dated 15.07.2016 (hereafter 'the impugned award').

(2.) The impugned award was rendered by the sole arbitrator in respect of disputes that had arisen between the parties in relation to an agreement dated 24.10.2008 (hereafter the 'Agreement').

(3.) BHEL floated a tender for construction of "Complete Plant Boundary Wall including Gates at 2X750 MW Pragati III Combined Cycle Power at Bawana, Delhi" (hereafter 'the works'). Garg Builders submitted its bid which was accepted by issuance of the Letter of Intent dated 09.09.2008 (hereafter 'the LOI'). Thereafter, on 24.10.2008, the parties entered into an Agreement. The stipulated period of completion of the works was seven months; the date of commencement of the works being 24.09.2008 and date of completion being 23.04.2009. Garg Builders furnished a bank guarantee towards security deposit for a sum of Rs. 11,13,550/- dated 01.10.2008 (hereafter 'the BG') issued by the Axis Bank.