MAHANAGAR TELEPHONE NIGAM LTD Vs. ASCO ENGINEERING

JUDGEMENT

(1.) By this petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short "the said Arbitration Act"), the petitioner has impugned the arbitral award dated 29th March 2011 in so far as the Claim Nos.1, 4, 6, 8, 12 and 13 are concerned. Some of the relevant facts for the purpose of deciding this petition are as under :-

(2.) The petitioner was the original respondent in the arbitral proceedings. The respondent was the original claimant in the arbitral proceedings. On or about December 2003, the petitioner invited tenders for the work of providing and installation of false ceiling in its office areas at Cumbala Hill, Telephone Exchange building with the estimated cost of the said work at Rs.21,08,388/- and with the stipulated period for completion of work at three months. Pursuant to the said tenders invited by the petitioner, the respondent submitted its bid at Rs.28,12,500/- which was 33.39% above the estimated cost of the tender.

(3.) It was the case of the petitioner that though the stipulated date of completion of work was 15th April 2003, the respondent completed the work awarded only on 24th February 2007 i.e. after the period of about four years from the stipulated date of completion. According to the petitioner, the petitioner paid various running accounts bills raised by the respondent from time to time.The respondent, however, never raised any kind of grievance in respect of the said payments of bills and accepted the amounts unconditionally. The respondent did not submit any final bill with the petitioner though under the contract, it was the responsibility of the respondent to submit a final bill.