LAWS(DLH)-2019-7-71

PATNA WATER SUPPLY DISTRIBUTION NETWORK PVT. LTD. Vs. BIHAR URBAN INFRASTRUCTURE DEVELOPMENT CORPORATION

Decided On July 01, 2019
Patna Water Supply Distribution Network Pvt. Ltd. Appellant
V/S
Bihar Urban Infrastructure Development Corporation Respondents

JUDGEMENT

(1.) The Petitioner by way of the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'Act') challenges the orders dated 25th April 2019, 4th April 2019 and 6th March 2019, passed by the Arbitral Tribunal in the ongoing arbitration between the parties.

(2.) Petitioner is a Special Purpose Vehicle (SPV) incorporated under the provisions of the Companies Act, 1956, by Gammon India Ltd. (majority member) and Geo Miller Pvt. Ltd. (minority member, hereinafter referred to as 'Geo Miller'). Gammon India Ltd and Geo Miller are members of the 'Gammon-Geo Miller Consortium', which was awarded the Contract in question by the Respondent. The Petitioner SPV was constituted in terms of clause 1.14 of the Conditions of Contract, for the purposes of execution of the work of designing, building, operating, managing and maintaining the water supply system in Patna, Bihar. Gammon India Ltd., is the lead member of the Gammon-Geo Miller Consortium along with Geo Miller as the minority member. The said Consortium was constituted vide Contract dated 12th January 2012 (hereafter referred as the "Consortium Agreement"). Both consortium members are companies incorporated under the Companies Act, 1956. Gammon-Geo Miller Consortium was awarded the work by the Respondent, vide Letter of Acceptance (hereinafter referred to as 'LOA') dated 27th February 2012.

(3.) Pursuant to the issuance of the LOA, submission of the Bank Guarantees, mobilization of manpower and equipment, a Formal Agreement dated 28th March 2012 was entered into between the Respondent, both the members of the consortium as aforesaid and Patna Nagar Nigam (as the beneficiary of the Project). By way of the said agreement, it was agreed that on incorporation of the Petitioner SPV, a fresh agreement shall be executed and the present agreement shall form a part of that agreement. Thereafter, on incorporation of the Petitioner SPV on 21st May 2012, a fresh Agreement dated 24th September 2012 was executed between the parties. All the aforesaid agreements form part of the Contract between the parties (referred to as 'the contract').