SHYAM LALIT DUBEY Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal is directed against the judgement dtd. 28/6/2023 passed by the Commercial Court, Lucknow whereby the petition filed by the respondents under Sec. 34 of the Arbitration and Conciliation Act, 1996 (for short the 'Act, 1996') has been allowed and the arbitral award dtd. 6/11/2020 has been set aside.

(2.) Tender offer of the appellants for the work of rebuilding of Bridge No. 70 at Km 34/13-14 between Lalgopalganj (LGO) and Bhadri (BHDR) Station on ARC Sec. under ADEM/PRG of Lucknow Divison was submitted in pursuance of the tender notice dtd. 21/12/2016, which was accepted by the competent authority at the offered rates. The total cost of assigned work was Rs.2,50,86,758.87P.

(3.) Pursuant to the said acceptance, Letter of Acceptance (LoA) dtd. 1/5/2017 was issued. Pursuant to the terms of the contract, earnest money deposited by the appellants with the tender documents was retained and balance security deposit was to be recovered from the progressive bills @ 10% till full security amount was recovered. A performance guarantee of Rs.12,54,340.00 was required to be submitted, which was submitted in the shape of FDRs by the appellants. A formal agreement was entered into between the parties to which the general conditions of Railways contract ('GCC') were applicable. Under the agreement, the appellants were required to complete the work within eight months from the date of issue of LoA i.e. by 31/12/2017 in conformity with the approved drawing.