COLLAGE ESTATES PVT LTD Vs. BLUE STAR LTD

JUDGEMENT

(1.) This petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Arbitration Act) seeking to impugn the Award dated 06.03.2017. The petitioner Company is said to be working in the real estate sector. The respondent Company is engaged in providing services of central air conditioning.

(2.) The petitioner invited tenders for installation and commissioning of a HVAC (Heating, Ventilation and Air Conditioning) system in Viva Collage Mall situated at 12 KM Jalandhar-Phagwara Road, Jalandhar, Punjab in 2008. The contract was awarded to the respondent for a total contract price of Rs.12,71,40,000/-. A contract agreement was executed on 08.02.2008. It is contended by the petitioner that as per the contract, the respondent Company had to supply/install, test and commission 4 chillers, 3 imported centrifugal water cooled chilling machine of 650 TR capacity and 1 Rotary screw water cooled chilling machine of 220 TR capacity. An order dated 11.02.2018 was issued to the respondent.

(3.) It is also the contention of the petitioner that the respondent Company commissioned 3 out of the 4 machines on 23.04.2010. Out of 3 the chillers of 650 ton, only two chillers were commissioned and one chiller has not been commissioned. However, soon problems arose in the performance of the machines installed by the respondent Company. It is stated that every other day, there were some or other problems arising with the chillers compelling the petitioner Company to send a snag list from time to time to the respondent Company requesting it to resolve the problems. The grievance of the respondent was that despite having completed all the work and having commissioned the project, the petitioner did not pay the respondent a balance sum of Rs.1,78,27,556/-.