SADBHAV ENGINEERING LIMITED Vs. EFFTECH INFRA ENGINEERS

JUDGEMENT

(1.) Heard Mr. Unmesh Shukla, learned Senior Advocate appearing for Thakkar and Pahwa Advocates for the appellant and Mr. Shalin Mehta, learned Senior Advocate assisted by learned advocates Mr. Sauin A. Mehta and Mr. Krishal H. Patel for the defendant.

(2.) The present First Appeal impugns the judgment and order dtd. 27/10/2023 passed by the learned Commercial Court at City Civil Court, Ahmedabad in Commercial Civil Misc. Application No.170 of 2023 whereby the learned Court has allowed the application under Sec. 9 of the Arbitration and Conciliation Act, 1996 ["Act of 1996" for short] and directed the appellant to furnish a bank guarantee of Rs.34,88,713.00.

(3.) The brief facts of the case are that the appellant herein was awarded a contract by the National Highway Authority of India ["NHAI" for short] for 'augmenting existing road from 7.9 km to 53.585 (design chainage from 6.945 km to 54.990 km) on the Bhavnagar-Talaja Sec. of National Highway No.8E in Gujarat by four laning'. The total project cost was Rs.802.11 crores. The appellant further subcontracted the said work to the respondent company vide Work Order bearing No.SEL/SBHPL/FY17-18/ WO/03841 dtd. 10/2/2018. The respondent carried out the work for the appellant under the said work order. Accordingly, inspections came to be made and running bills were raised by the respondent. Further, for the period between 1/1/2018 to 31/10/2022, the respondent raised invoices and accordingly, payment certificates came to be issued by the appellant herein in favour of the respondent. Thus, as per the agreement between the parties, the respondent concluded the work order and a sum of Rs.33,18,808.00 remained due and payable to the respondent by the appellant. Despite several reminders, the appellant did not make the payment of the outstanding dues. The respondent also proposed a settlement with the appellant, but it did not make any payment even as per the settlement proposed by the respondent. It is the case of the respondent that the appellant is liable to pay a sum of Rs.34,88,713.00 in total towards the outstanding dues.