KAKADE INFRASTRUCTURE PVT LTD Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) The applicant in this petition has invoked the jurisdiction of this Court under Section 11(6) of the Arbitration and Conciliation Act,1996 (for short 'the Act') seeking appointment of an arbitrator to adjudicate the disputes stated to have arisen between the parties under a Concession Agreement. Prayer in the application reads thus:

(2.) The factual antecedents on which the controversy arises may be illustrated by the following facts:

(3.) The applicant being the successful bidder, the respondent accepted the applicant's bid, by issuance of an acceptance letter dated 27 July 2010. The acceptance letter inter alia provided the applicant to pay an upfront amount of Rs.146.45 crores as one time payment to the respondent at the time of signing of the agreement, as also submit a performance security in the form of a bank guarantee of a nationalised/scheduled bank amounting to Rs.6.40 crores twice separately, first within fifteen days from issuance of the letter and the second at the time of starting the construction. Two paragraphs of the acceptance letter on which the parties have joined an issue are required to be noted as appearing at page 377 of the paper book which reads thus: