NATIONAL ASSOCIATES Vs. NORTH EASTERN INDIRA GANDHI REGIONAL INSTITUTE OF HEALTH AND MEDICAL SCIENCES

JUDGEMENT

(1.) This application under Section 11 (6) of the Arbitration and Conciliation Act, 1996 has been filed by the applicant, National Associates having its registered office at Bokel Tiniali, Dibrugrah, Assam through its Proprietor, Md. Rajib Ahmed, against the respondent North Eastern Indira Gandhi Regional Institute of Health and Medical Sciences (in short NEIGRIHMS), Shillong and 2 others, praying for appointment of Sole Arbitrator to adjudicate and decide all the disputes between the petitioner and the respondents arising out of and relating to the contract work for the '.. contract Agreement - Tender No. HSCC/BU - HP - 2/111/2005 for supply, installation, Testing and commissioning of Specialised mechanical services/equipment and associated works for 500 bedded super speciality hospital at NEIGRIHMS, Shillong Package - VII (Hospital Waste Management system), dated 31.05.2006.'

(2.) According to the applicant, the respondents vide notice dated 05.04.2005 invited tenders from eligible bidders for supply, installation, testing and commissioning of Specialised mechanical services/equipments and associated works for 500 bedded super speciality hospital at NEIGRIHMS, Shillong - Package - VII (Hospital Waste Management system). The bid of the applicant was accepted by the respondents for an estimated price of Rs. 68,99,000/- (Rupees Sixty-Eight Lakhs Ninety-Nine Thousand) only vide notification of Award dated 31.03.2006 issued by the respondent No.2, Chief General Manager (PG-III), Project, HSCC (I) Ltd. E - 6 (A) Sector 1, Noida, (Uttar Pradesh). The petitioner submitted its performance security of Rs 68,99,000/- (Rupees Sixty-Eight Lakhs Ninety- Nine Thousand) only on 16.05.2006. The petitioner vide letter dated 25.05.2006 was requested to commence the work under the said tender and was also informed that the completion period for the said work shall be six months from the date of issue of the order of commencement i.e, 25.05.2006.

(3.) An agreement was entered into between the petitioner and respondent No. 1 on 31.05.2006. The petitioner vide letter dated 20.09.2006 submitted to respondent No. 1 copies of P&I Diagram and Layout Drawing and Datasheet for approval. The petitioner thereafter vide letter dated 15.11.2006 invited the respondents for giving an inspection call to the items for which he was to supply in terms of the said contract. The respondents vide letter dated 17.11.2006 informed the petitioner that inspection for the medical waste shredder, needle destroyer, waste collection container and waste collection bags have been waived off and the petitioner was requested to dispatch the items at NEIGRIHMS, Shillong at the earliest. Pursuant to the said letter, the petitioner delivered the items under the said contract.