LAWS(DLH)-2019-2-315

THDC INDIA LTD Vs. JAI PRAKASH ASSOCIATES LIMITED

Decided On February 26, 2019
Thdc India Ltd Appellant
V/S
JAI PRAKASH ASSOCIATES LIMITED Respondents

JUDGEMENT

(1.) The present Section 34 petition has been filed challenging arbitral Award dated 22nd January, 2011 passed by a three-member Tribunal. The Respondent-contractor was awarded a contract for construction of "Chute and Shaft Spillways at Tehri for the Tehri Dam for the Tehri Hydro Development Corporation (THDC)." The Letter of Intent was issued on 15th December, 1998. The date of commencement of the work was 29th December, 1998, with a completion period of 54 months. The scheduled date of completion was 28th June, 2003. However, the actual date of completion was 31st December, 2007. The total value of the contract was Rs.474,81,53,760/-. Disputes had arisen between the parties, and the contractor raised various claims. The Arbitral Tribunal was constituted vide THDC's letter dated 31st July, 2007. Vide the impugned Award, the Arbitral Tribunal decided various claims and awarded a total sum of Rs.14,98,94,329/-. Some amounts were also awarded to THDC against claim No.7. The relevant portions of paragraphs 5.2 and paragraph 6 are recorded herein below: -

(2.) The objections before this Court under Section 34 relate to the following issues: -

(3.) The contractor claimed a sum of Rs.65,70,529/- on the ground that entry tax was levied by the State of U.P. on movement of vehicles, after the submission of bids by the contractor. The said tax was levied vide an Ordinance of 31st October, 1999. It was the contractor's case that any newly imposed tax is liable to be reimbursed to the contractor as per clause 30 of the General Conditions of Contract (GCC). The Arbitral Tribunal, after perusing the documents and the contract, awarded a sum of Rs.60,72,164/- in favour of the contractor.