FORUM PROJECTS PRIVATE LIMITED Vs. BERHAMPUR DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This appeal under Section 37 of the Arbitration Conciliation Act, 1996 (for short, the Arbitration Act') has been filed assailing the order dated 18.10.2019 (Annexure-1) passed by learned District Judge, Ganjam, Berhampur in Arbitration Petition No.4 of 2018, whereby he dismissed a petition filed by the present Appellant-Company under Section 9 of the Arbitration Act holding it to be not maintainable.

(2.) Short narration of facts necessary for proper adjudication of this appeal are that pursuant to a 'Request for Proposal' (RFP) by the Respondent - Berhampur Development Authority (BDA) for development of Integrated Commercial cum - Residential Complex in Berhampur, the Appellant had participated in the bid and became the highest bidder having quoted an amount of Rs.9.40 crore. The project was decided to be undertaken on a Public Private Partnership (PPP) basis. Upon compliance of initial formalities and deposit of 25% of the bid amount, i.e., Rs.2.35 crore, the Respondent-BDA issued Letter of Intent (LOI) on 16.06.2008 in favour of the Appellant-Company requesting the Appellant to deposit the balance contractual bid amount within a period of 180 days and to execute the agreement. But, the Appellant could not deposit the balance contractual bid amount of Rs.7.05 crore within a stipulated period of 180 days. Hence, the LOI issued in favour of the Appellant was cancelled vide Order No.250/BeDA Berhampur dated 03.03.2015. Assailing the same, the Appellant filed W.P.(C) No.8653 of 2015 before this Court. This Court by order dated 11.05.2015, while issuing notice in the matter, passed the following interim order.

(3.) Mr. Bose, learned counsel for the Appellant submitted that the impugned order is an outcome of non-application of judicial mind. The Respondent, accepting the initial deposit of Rs.2.35 crore paid by the Appellant, issued the LOI as well as draft Lease-cum-Development Agreement to the Appellant. It was returned to BDA being signed by the authorized signatory of the Appellant, which was accepted in a joint meeting held on 08.09.2009 as a token of acceptance of the proposal made by the Respondent. Clause 32.2 of Part-II of the draft agreement contains the Arbitration Clause, which reads as follows: