V G CONSTRUCTIONS Vs. MAYTAS INFRA LTD

JUDGEMENT

(1.) By this application, filed under Sec. 11 of the Arbitration and Conciliation Act, 1996, the applicant prays this Court to appoint a sole Arbitrator and refer the dispute/difference that has arisen between them and the respondent, namely M/s. Maytas Infra Ltd., out of the contract entered into by and between them, to the Arbitrator for adjudication.

(2.) The applicant is a construction company. The respondent, a public limited company is also into construction and development business. The applicant states that the respondent retained them as sub-contractor vide sub-contract agreement dated 28.08.2008 in respect of civil works relating to construction of Warehouses Compex at Malkapur on Hyderabad - Vijayawada, which work was awarded to the respondent by M/s. Maytas Hill County Developers Pvt. Ltd, vide work order dated 18.03.2008.

(3.) The applicant states that as per the sub-contract agreement, they are required to complete the entire work within seven months from the date of its execution. Pursuant to the sub-contract agreement, the applicant states that they mobilized machinery, men and power for the work and commenced the work as per schedule, however, there were laches on the part of the respondent in even reimbursing money for the works certified. The applicant states that out of total work executed to the tune of Rs. 2,67,07,694.00, the respondent released an amount of Rs. 85,00,000.00, and thereafter, by letter dated 28.01.2009, permitted them to take away TMT bars from the project site towards piecemeal payment.