VA TECH WABAG LIMITED Vs. KERALA WATER AUTHORITY

JUDGEMENT

(1.) This is an arbitration request filed under Section 11(6) of the Arbitration and Conciliation Act, 1966. The applicant is a Company engaged in the business of water treatment plants. The applicant was awarded by the opposite party, a work relating to a water treatment plant. Annexure A2 is the agreement entered into between the applicant and the opposite party in connection with the award. It is alleged by the applicant that though they have executed the work awarded to them satisfactorily, large amounts payable to them are withheld by the opposite party without any justifiable reason. It is the case of the applicant that, in terms of the agreement, disputes of this nature are required to be resolved by recourse to arbitration. It is alleged by the applicant that they have though required the opposite party to take necessary steps to resolve the dispute raised by them by recourse to arbitration, the same is not being considered by the opposite party.

(2.) A counter affidavit has been filed by the opposite party contending, mainly, that the bills raised by the applicant have not been honoured in full as various defects were noticed in the work. It was also contended in the counter affidavit that the request for initiation of arbitration proceedings was belated and the same was not in accordance with the arbitration agreement. The fact that Annexure A2 agreement contains an arbitration clause is not, however, denied or disputed by the opposite party in the counter affidavit filed by them.

(3.) Heard the learned senior counsel for the applicant as also the learned Standing Counsel for the Water Authority.