KIDDE INDIA Vs. NTPC

JUDGEMENT

(1.) The present petition, under the provisions of the Indian Arbitration Act, 1940 (hereinafter, "Arbitration Act") has been commenced after receipt of award dated 9th December, 2008 filed by the Arbitral Tribunal in this Court, for passing of a decree in terms of the award. Objections were filed by the Respondent, NTPC (hereinafter, "NTPC") vide I.A. No. 5570/2009 under Sections 30 and 33 of the Arbitration Act. The same are being disposed of by way of the present order.

(2.) One M/s Vijay Machinery Store (hereinafter, "Contractor") was awarded a contract for installation of fire protection systems, against prescribed specifications for the Ramagundum, Super Thermal Power Project, Stage I vide letter 01/CC/32-133/AC dated 24th March, 1982. The said contract contained an arbitration clause which reads as under:

(3.) The works were executed by the contractor, and the systems were taken over by NTPC on 4th August, 1986. On 14th October, 1987, vide a telex message sent to the Contractor, it was informed that all the pending bills of the Contractor were already cleared by NTPC. However, on 23rd November, 1987, the Contractor raised claims towards extra works, which it claimed to have undertaken. The claims raised by the Contractor were denied by NTPC on 21st June, 1988. NTPC gave detailed reasons as to why each of the claims of the Contractor was not maintainable. On 6th March, 1989, the contractor raised a total claim of Rs.74,80,122.97/- along with 18% p.a. to be computed from 1st June,1983 to 28th February, 1989. In this letter, the contractor relied upon several letters/messages exchanged between the parties. Vide this letter, the contractor informed NTPC that if the claims are not settled, it would be invoking arbitration.