OIL AND NATURAL GAS COMMISSION NOW OIL AND NATURAL GAS CORPORATION LTD Vs. NEW INDIA CIVIL ERECTORS PVT LTD

JUDGEMENT

(1.) THIS is an appeal from the judgment of the learned Single Judge dismissing the arbitration petition of the appellant for setting aside the award.

(2.) THE relevant facts of the case, briefly stated, are as follows. The appellants, Oil and Natural Gas Commission, ("ongc") invited tenders for carrying out the construction of 304 Nos. 'b' type pre-fab Housing Units at Panvel Phase I. In pursuance of the above tender invitation, the respondents, New India Civil Erectors Pvt. Ltd. ("contractors"), submitted their tender. The respondents, being the successful bidders, were accordingly allotted the work. A written contract was executed between the appellants and the respondents on 14th January, 1985 for carrying out the said work. The work of construction was duly commenced by the respondents. The appellants too made certain interim payments to the respondents. According to the appellants, after receiving payment of Rs. 3,09,052. 57, the respondents abandoned the work. As a result, the appellants had to get the balance construction work carried out through other contractor at the risk and cost of the respondents, which costed them approximately Rs. 114. 07 crores. The case of the respondents on the other hand is that the work could not be completed by them because of the refusal of the appellants to extend the time for completion of the construction work which was necessitated on account of the acts and omissions of the appellants.

(3.) SINCE disputes and differences arose between the appellants and the respondents before completion of the construction work, the appellants took over possession of the construction work and materials and machinery at site. The respondents thereupon invoked the arbitration clause contained in the letter dated 5th March, 1984 which formed part of the written agreement. Accordingly, the dispute was referred to arbitration. One arbitrator was appointed by each of the parties. The said arbitrators appointed Dr. R. K. Katti as umpire. Before the arbitrators, respondents were the claimants and appellants the respondents. The respondents submitted the statement of claims and copies of supporting documents to the arbitrators. The appellants submitted written statement which also included their counter-claims together with copies of supporting documents. The arbitrators considered the evidence placed before them by the parties, gave hearing to the parties and ultimately awarded a sum of Rs. 1,09,04,789/- in favour of the respondents-contractors and against the appellants and a sum of Rs. 41,22,178/- in favour of appellants, ONGC and against the respondents-contractors and directed the appellants ONGC to pay the balance amount of Rs. 67,82,620/- to the respondent-contractors within 30 days from the date of receipt of the award and in the event of failure to make the payment within that period, to pay interest at the rate of 18 per cent per annum from the date of the award till the date of payment or decree whichever was earlier.