STATE OF MIZORAM Vs. BHAGHEERATHA ENGINEERING LTD

JUDGEMENT

(1.) IN challenge is the order dated 7. 7. 2008 passed by District Judge, Aizawl in connection with post Arbitration Case No. 7 of 2007 whereby and whereunder the petitioner had been allowed to utilize and dispose of the plant and machineries as they wish.

(2.) BHAGHEERATHA Engineering Ltd. , the respondent herein in joint venture with Ashoka Buildcon Ltd. , Nasik signed contract agreement with Engineering-in-Chief, PWD, Government of Mizoram on 28. 3. 2002 for improvement and up-gradation of Aizawl-Thenzawl-Lunglei Road, Phase-I. According to joint venture agreement, the joint venture members are jointly and severally responsible and liable to the employer for the performance of the contract. The employer terminated the contract under Clause 63. 1 of the agreement on June 15, 2005 due to slow progress and also unauthorized sub-contracting of major portion of the works in violation of Clause 4. 1. The employer, State of Mizoram, the appellant herein invoked contractor's bank guarantees for performance security.

(3.) WE have heard Mr. A. K. Roy, learned counsel for the appellants and Mr. Ricky Gurung, learned counsel for the respondent.