SIVALAYA CONSTRUCTION COMPANY PVT LTD Vs. DELHI STATE INDUSTRIAL AND INFRASTRUCTURE DEVELOPMENT CORPORATION LTD

JUDGEMENT

(1.) The short question that arises in this case is as to whether the Petitioner-Claimant had given up its claims against the Respondent. The brief background is that the Petitioner was awarded a contract by the Delhi State Industrial and Infrastructure Development Corporation Ltd. (hereinafter "DSIIDC") for "Construction of IT-cum-Flatted Factory Complex at Okhla Phase-I, New Delhi." Disputes arose between the parties. The Sole Arbitrator entered reference on 28th August, 2013 and rendered a nil award, by which the claims of the Petitioner were rejected.

(2.) Tenders were invited by the DSIIDC and the Petitioner-contractor had bid for the same. Being the lowest tenderer, the letter of acceptance was issued to the Petitioner on 29th February, 2012. The time for executing the works, as per the letter of acceptance, was 24 months. Pursuant to the award of tender, the Petitioner had submitted a performance bank guarantee for a sum of Rs.1,88,72,000/-. Security deposit, as per the tender, had also been made to the extent of 5%.

(3.) Immediately after the award of tender, various letters were exchanged between the parties including letters dated 2nd August, 2012 and 30th October, 2012 written by the Petitioner-Claimant. In the letter dated 30th October, 2012, the Claimant stated that there were several delays in handing over of the site by the DSIIDC and in view of these delays, the contractor wanted to suspend the work, without prejudice to its rights. The Relevant excerpts from the said letter is set out below: -