KARAM CHAND THAPAR Vs. HINDUSTAN CONSTRUCTION COMPANY LTD

JUDGEMENT

(1.) This Petition under Section 9 of the Arbitration and Conciliation Act, 1996 has been filed by a sub contractor against the contractor and principal relief which is sought is that the Respondent shall not invoke, encash or receive any monies under the Performance Bank Guarantee of Rs. 15.95 Crores issued by the HSBC Bank on behalf of the Petitioner to the Respondent.

(2.) It is not dispute that Sardar Sarovar Narmada Nigam Limited (SSNNL) has awarded a contract of Constructing, Canal Earthwork, Canal Lining, Structures and Services Roads of Distributaries and minors of Limbdi branch Canal including maintenance and operation for 5 years to the Respondent HCC Ltd. The Contract Agreement is dated 26 th April, 2011. Clause 62 of the Contract provides that entire contract shall not be assigned or sub let, but the Chief Engineer may allow to sublet the part or portion of the work not exceeding up to 40% of Tender costs, if the sub contractor satisfies the requirement of the work to be sub let. The said clause further provides that if the contractor shall assign or sub let his contract or attempt to do so, the Engineer in charge may rescind the contract by a notice in writing.

(3.) The Respondent thereafter issued a Letter of Intent in respect of the said main contract in favour of the Petitioner appointing the Petitioner as a sub contractor. The said Letter of Intent is at Exh. C and the same clearly recites as under :