CONSORTIUM COMPRISING OF LARSEN & TOUBRO LIMITED Vs. MUMBAI METROPOLITAN REGIONAL DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This is a petition under Sec. 11 of the Arbitration and Conciliation Act, 1996 (for short, "the Act") whereby the applicants pray for appointment of an arbitral tribunal as per the General Conditions of the Contract (for short, "GCC"), for and on behalf of parties, for adjudication of the disputes which are stated to have arisen under the Contract Agreement dated 9 Jan. 2009 for the work of "planning, design, development, construction/manufacture/supply, testing & commissioning the Monorail system including its operation and maintenance from Sant Gadge Maharaj Chowk Wadala Chembur Station" (for short, "the contractual work").

(2.) The factual antecedents in which the controversy arises may be illustrated by the following facts:- The applicants-Larsen & Toubro Limited and Scomi Engineering BHd. established an unincorporated consortium ("the applicants") under a consortium agreement dated 4 June 2008, to participate in the 'Request for Proposal' (RPF), issued by the respondent for implementation of the said Monorail project.

(3.) On 15 July 2008 the applicants submitted their bid and were successful bidders. On 7 Nov. 2008 the respondent issued a 'letter of acceptance' to the applicants awarding the contractual work. Consequent thereto on 9 Jan. 2009 an agreement (for short the "contract") was executed between the applicants and the respondent. The contractual work was divided in schedule A (planning, design, etc.) and schedule B (operation and maintenance of Monorail system), at a consortium contractual price of Rs.2639,20,77,000.00. The applicants commenced execution of the contractual work. The applicants contend that in the course of execution of the works, they faced numerous delays, of which the respondent was constantly updated. According to the applicants, the delay was attributable to the respondent. The applicants contend that the respondent had also granted number of extensions.