JAMIA MILLIA ISLAMIA Vs. AIRWAVES ENGINEERS PVT LTD

JUDGEMENT

(1.) This petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') challenging the Award dated 25.03.2015 passed by the Sole Arbitrator adjudicating the disputes that have arisen between the parties in relation to the Agreement dated 14.06.2011 by which the petitioner had awarded the work of 'Air-conditioning and Associate Civil & Electrical Works at Centre for Interdisciplinary Research in Basic Science Building at Jamia Milia Islamia' to the respondent.

(2.) The Scheduled Date of Commencement of work was 21.06.2011 and the work was to be completed within a period of three months. It is important to note at this stage itself that though the estimated cost of the work was Rs.2,23,30,347/-, the respondent had submitted its bid only at Rs.1,66,52,193/-, which was 25.42% lesser than the estimated cost and the same had been accepted by the petitioner.

(3.) It is the case of the petitioner that the respondent having bid below the cost price and having obtained the Contract, first submitted defective drawings to the petitioner, which could not be approved by the petitioner, leading to the petitioner calling upon the respondent to revise the same. It was only on 17.01.2012 that the respondent finally submitted the corrected drawings and the same were approved on the same day by the petitioner. In spite of approval of the drawings, the respondent did not carry out any work forcing the petitioner to issue a Show Cause Notice dated 16.03.2012 to the respondent asking it to show cause why the Contract be not terminated. The respondent did not give any reply to this notice and the petitioner, left with no other option, terminated the Contract by its letter dated 24.04.2012. It is only after the termination of the Contract that the respondent raised its claims challenging the said termination.