IRCON INTERNATIONAL LIMITED Vs. STATE OF A.P.

JUDGEMENT

(1.) The Government of Andhra Pradesh has undertaken the work of widening the road from Kadapa to Tadipatri. It appears to have been sponsored or funded by the World Bank. The petitioner, which is a Government of India undertaking, submitted its tender and became the successful bidder. The cost of the work is said to be about Rs.50 crores. In relation to the contract, the petitioner raised claims of different kinds. As many as three arbitrations ensued. The respective arbitrators awarded sums of Rs.1,55,49,724/-, 8,79,73,528/- and 32,31,897/-, with interest at the rate of 18% to 10% per annum. Proceedings were initiated before the respective Courts for enforcement of the awards or for setting aside the same, as the case may be.

(2.) When the proceedings were pending before the Courts, the petitioner appears to have offered for a settlement. The offer was acted by the respondents.

(3.) Ultimately, G.O.Ms.No.614, dated 25.05.2009, was issued by the 1st respondent, agreeing to pay a sum of Rs.13.25 crores in full and final settlement of the claims. The petitioner states that as against Rs.13.25 crores, the respondents paid a sum of Rs.11,30,20,975/- but did not pay the balance of Rs.1,49,67,045/-.