UNION OF INDIA Vs. AWALESH KUMAR SINGH

JUDGEMENT

(1.) Present petition has been filed challenging the award dated 26th March, 2007 passed by the learned Arbitral Tribunal.

(2.) Briefly stated, tenders were invited by the Petitioner, Northern Railway, Chandigarh in April, 2001 for filling, construction and other work in Zone-7 from Kms.20 to Kms.25 in Punjab area in connection with new B.G. Rail Link from Chandigarh to Ludhiana. The Respondent submitted its tender. On 17th July, 2001 the acceptance letter was signed. As per the Petitioner, the Respondent did not start work despite repeated letters and notices and neither was there any mobilisation done on site. In fact, Respondent failed to deposit even the Security deposit and various letters were issued, calling upon the Respondent to deposit the said sum of Rs. 5 Lakhs. Since the Respondent did not mobilise the resources and commence the work, the Petitioner proceeded to terminate the contract vide letter dated 5th November, 2001 in terms of the General Conditions of contract. The Petitioner then carried out work through some third party at the Respondent's risk and costs.

(3.) Challenging the termination, the Respondent invoked the arbitration clause in the contract. It filed its claim for Rs. 50,000/- and the Petitioner filed a counter claim to the tune of Rs. 1,20,98,000/-, subsequently modified to Rs. 89,95,348/-. Learned Arbitral Tribunal rejected both the claims and the counter claims.