SUBHASH INFRAENGINEERS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') has been filed by the petitioner challenging the Award dated 24.08.2017 passed by the Sole Arbitrator in the Arbitration Proceedings held between the parties.

(2.) The disputes between the parties relate to the Award of work of earth work in filing, embankment and cutting, provision of the blanketing material, construction of bridges and other allied works between K.M 49.00 to K.M 74.4 on Rewari - Jhajjar - Rohtak section in connection with Rohtak - Jhajjar - Rewari new railway line in favour of M/s Subhash Chander & Co. (the predecessor of the petitioner, herein).

(3.) The entire work were required to be completed within 18 months from the date of issue of acceptance letter dated 04.07.2007 i.e. on or before 001.2009. The work was, however, completed on 28.02.2011. During the execution of the work, the respondent granted the first Extension of Time vide its letter dated 12.02.2009 without levy of penalty and with the benefit of Price Variation Clause (PVC). Thereafter, further extension was granted vide letters dated 04.08.2009, 07.08.2009, 10.02010 and 20.06.2010, again without penalty, however, without the benefit of PVC. By letter dated 17.02011, ex post facto extension was granted by the respondent, again without penalty, however, without the benefit of PVC. The second and final Addendum cum Corrigendum to the Contract Agreement was executed between the parties on 14.10.2011 and the final payment of Rs.54,59,691/- was released in favour of the petitioner.