STATE OF WEST BENGAL Vs. CHOWDHURY CONSTRUCTION

JUDGEMENT

(1.) This is an appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996. It is from a judgment and order dtd. 24/2/2020 made by the learned Judge, Commercial Court at Asansol in an application under Sec. 34 of the said Act challenging an arbitral award dtd. 29/7/2015.

(2.) The claim in arbitration arose out of a works contract between the respondent contractor and the Government of West Bengal dating back to 2007. It involved the widening and strengthening of the Memarichakdighi and Tarakeswar Road in the then district of Burdwan, West Bengal spanning 30.16 km. It was executed on 8/8/2007 costing the government Rs.11,63,76,445.00. The time stipulated for completion of the work was 18 months from the date of commencement on 8/2/2008 i.e. on 7/8/2009.

(3.) Eventually, as it happens in most of these works contracts, there was delay in progress of the work. The respondent contractor attributed this delay to the government whereas the government accused the contractor of breach of contract by delayed and poor performance of the work. Eventually the contract was rescinded by the government on 18/10/2012. At the time of rescission of the contract by the government the security deposit of Rs.33,70,452.00 which the respondent contractor had made in terms of the contract with the government at the time of its execution, as a kind of performance guarantee was forfeited. As is usual in these matters, the matter went to arbitration. The respondent contractor made no less than 25 heads of claims of the following description:-