UNION OF INDIA Vs. AWADH TRANSFORMERS PVT LTD

JUDGEMENT

(1.) Heard Shri O.P. Lohia appearing for the Union of India. Shri Shambhavi Nandan appears for the Respondent-contractor.

(2.) In this First Appeal From Order, the Union of India is aggrieved by the order of the District Judge, Allahabad dated 6.7.2010 in Misc. Arbitration Case No. 254/ 2010, Awadh Transformers Pvt. Ltd v. Union of India and Ors. Misc. Arbitration Case No. 254/ 2010, by which while issuing notices to the opposite party on the date fixed, the District Judge has by an ex-parte order restrained the opposite party from terminating the impugned agreement and also invoking Bank Guarantees No. 63/41 and 63/53 issued by Central Bank of India, Sultanpur

(3.) Shri O.P Lohia appearing for the Union of India submits that electrification of Barabanki-Gorakhpur-Barauni route of Railway track of North Eastern Railway and East Central Railway was sanctioned by Government of India in 2007-08 for increasing the fine capacity of the section. To materialise the proposed project, tenders were invited for design, supply, erection, testing and commissioning of 132/25 KV traction sub-station feeding post and shunt capacitor banks. An agreement was executed between the Appellant Railway Electrification and the Respondent contractor on 5.12.2008. The work was to be finished in nine months from the date of issue of letter of acceptance dated 10.7.2008. It was found that there was delay in completing the works, and that the Respondent firm had stopped the work for last ten months on which a notice was given to the contractor terminating the contract. Para 12.54 of the conditions of Contract provides for applicability of Clause-64 of the General Conditions of Contract, for a detailed procedure regarding arbitration. The contractor has an opportunity to raise all the claims within 120 days of the day of receipt of the claims.