KAP (INDIA) CONSTRUCTION Vs. WATERBASE LTD

JUDGEMENT

(1.) This application has been filed to appoint the Sole Arbitrator to arbitrate the dispute between the applicant and the respondents as per the Arbitration Agreement 1 and 2, dated 19.02.1991 and 18.06.1991, under the provisions of the Arbitration Act, 1940.

(2.) It is stated that the applicant is M/s. Kap (India) Constructions. The respondent had invited tenders for construction of Civil Works including buildings, bridges and other structures for its Prawn Aquaculture Project at Nellore, in Andhra Pradesh. In response to the invitation, the applicant had submitted two separate tenders one for Civil Works, relating to construction of buildings and structures and another for Civil Works, relating to the project. The respondent by its letter, dated 10.07.1990, had awarded works relating to the construction of buildings and structures for an approximate value of Rs. 2,69,68,090/-, to the applicant. The applicant had also remitted the security deposit of 2 1/2 per cent of the value which was Rs. 6,74,200/-. By another letter, dated 04.04.1991, the respondent had awarded the second work of construction of bridges for an approximate value of Rs. 64,57,951.03 and the applicant had remitted the security deposit of Rs. 1,64,450/-.

(3.) The contract entered into between the applicant and the respondent, inter alia, provided for an Arbitration Agreement under Clause 8.20 of the tender documents. Due to various reasons, there was a delay in carrying out the construction works by the applicant. The respondent had failed to pay the amounts due to the applicant. Therefore, disputes had arisen between the applicant and the respondent and they could not be resolved mutually. Therefore, there were demands and counter demands from both sides.