IRCON INTERNATIONAL LTD Vs. R S JIWANI

JUDGEMENT

(1.) This is a petition under Section 34 of the Arbitration and Conciliation Act, 1996 to set aside an award dated 5.5.2005 passed by a learned sole arbitrator.

(2.) The Petitioner had been issued a contract by the Maharashtra State Road Development Corporation Ltd. (MSRDC) inter-alia for constructing a rail over bridge (ROB). The Petitioner in turn floated a tender for the construction of foundations substructure and approach road for the ROB. The Respondent was awarded the contract by a letter of acceptance dated 19.1.1999. A contract dated 29.1.1999 was executed by the parties which incorporated several other documents. The work under the contract was of the value of about Rs.5,00,00,000/-. The stipulated date for completion was 18.11.1999. The work was completed after considerable delay on 27.1.2002.

(3.) Disputes and differences arose between the parties. One of the main questions was as to which of the parties was responsible for the delay. The Respondent by a letter dated 2.8.2002 made a claim in the sum of Rs.6,15,87,131 with interest and called upon the Petitioner to treat the same as a notice under condition 67.1 of the conditions of contract and requested the Petitioner for an amicable settlement under condition 67.2 of the General Conditions of Contract. The Petitioner by its letter dated 9.9.2002 rejected the claims. In the circumstances, the Respondent invoked Clause 29 of the Special Conditions of Contract. Disputes and differences having arisen between the parties, the Respondent by a letter dated 4.10.2002 invoked the arbitration clause. In accordance with the provisions of the contract, the Petitioner's Managing Director by his letter dated 20.12.2002 appointed the learned arbitrator.