PROGRESSIVE CONSTRUCTIONS LTD Vs. NATIONAL HYDROELECTRIC POWER

JUDGEMENT

(1.) Application under Section 11(6) of the Arbitration Act 1996 is preferred for appointment of an arbitrator to adjudicate the disputes and differences accrued between the parties with respect to the agreement dated 31st March, 1989/12th April, 1989. The respondent had, vide the said agreement, awarded to the petitioner work for construction of Power Channel Package at Tanakpur plant of the respondent in the State of Utter Pradesh. It is not in dispute that the scheduled date of completion of the said work was 4th April, 1990 and the actual date of completion of the work was 30th April, 1993. It is also not in dispute that the defect liability period was for a term of one year only and which expired on 30th April, 1994.

(2.) The present application was filed on 19th March, 2007 i.e., after nearly 14 years from the actual date of completion and 13 years from the expiration of the defect liability period. The respondent has, in its reply, opposed the application inter alia on the ground that the claims now sought to be agitated are palpably barred by time.

(3.) It is the case of the petitioner that it had, after entering into the agreement dated 31st March, 1989/12th April, 1989 with the respondent, assigned the works thereunder to M/s Sharma and Associates Contractors Pvt Ltd (hereinafter referred to as "Sharma Associates") vide contract dated 18th April, 1989. The petitioner claims such assignment to be with the consent of the respondent. The respondent controverts the same. It is the case of the petitioner that, as per its agreement with M/s Sharma Associates, the said M/s Sharma Associates only were to deal with the respondent; that due to non- payment of bills and clearing of dues by the respondent, M/s Sharma Associates raised certain claims against the petitioner.