PRESTRESS WIRE INDUSTRIES Vs. UPPAL BUILDERS PVT. LTD.

JUDGEMENT

(1.) By way of the present appeal filed under Section 37 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as the Act) the appellant/non-claimant impugns order dated 09.02.2018 made by the learned Single Judge in O.M.P. No.1588/2014, which was a petition under Section 34 of the Act, whereby the Award dated 17.04.2014 rendered by the Sole Arbitrator has been upheld.

(2.) M/S Prestress Wire Industries/non-claimant (hereinafter referred to as Prestress) and M/s Uppal Builders Pvt. Ltd (hereinafter referred to as Uppal Builders or contractor) entered into agreement dated 24.01.2009 whereby Prestress awarded to Uppal Builders work of construction of a factory building at Bajpur.

(3.) An important aspect of the transaction was, that to begin with, Uppal Builders was not the lowest bidder in the tender. However, Uppal Builders reduced its quote and gave a discount of 6.7%, which offer was accepted by reason of discount. The total value of the contract was Rs. 2.28 crores; the date of commencement of work was 21.1.2009; and the date of completion was 3.8.2009. According to Prestress, Uppal Builders was unable to complete the work within time; and therefore Prestress had to hire a third party to complete the project. It is Prestress's contention that Uppal Builders abandoned the site on 22.7.2010.