SALCON ENGINEERS AND FABRICATORS Vs. CHIEF ENGINEER

JUDGEMENT

(1.) The petitioner, M/S. Salcon Engineers and Fabricators Pvt. Ltd., is a government contractor enlisted as Class I (Civil) contractor with the Andaman Public Works Department (in short APWD). The petitioner entered into an agreement with the respondent for the work of "Construction of New Medical College at Port Blair; Sub Work: Development of site for Administrative Block, Science Block, Type -IV, Type V, Type VI and Professor Hostel at the new Medical Campus" to be completed within six months for the amount of Rs.7,99,91,956.00 (hereinafter referred to as the said agreement). Incorporated in the said agreement is Clause 25 of General Conditions of Contract, 2014 which is an arbitration agreement for adjudication of any dispute through arbitration. The said arbitration clause is set out hereunder for convenience:-

(2.) The date of commencement of instant work as per the said agreement was 27/7/2017 and the date of completion was scheduled on 26/11/2018 but due to various reasons the work was ultimately completed on 2/1/2019. The extension of time was accorded upto 2/1/2019 without levy of compensation. In course of executing the work 8 (eight) Running Account Bills (RA Bills) and the 9th RA being the final bill was raised by the petitioner (contractor). It is the case of the petitioner that huge payments are in arrears.

(3.) Being aggrieved by such non-payment of bills despite completion of the work, the petitioner invoked the arbitration agreement and submitted a notice for appointment of arbitrator to the Chief Engineer, being the respondent no.1 herein vide a notice dtd. 23/6/2020. This letter according to the petitioner is a notice in terms of Sec. 21 of the 1996 Act.