M R B ENGINEERS Vs. MODERN DIARIES LTD

JUDGEMENT

(1.) The petitioner has filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act'), for appointment/constitution of an Independent Arbitral Tribunal to adjudicate disputes between the parties arising out of an agreement dated 14.09.2005.

(2.) The petitioner and the respondent entered into an agreement dated 14.09.2005, requiring the petitioner to carry out construction of proposed plant/building and other civil works. The petitioner accepted the work and proceeded with its execution. The petitioner addressed a letter dated 02.12.2006 enumerating problems being faced during the execution of work, including non-payment of his upto date dues etc. The petitioner once again addressed another letter dated 06.12.2006 clarifying the problems being faced including non-clearance of his dues and his helplessness in executing the work. The petitioner finally addressed a letter dated 27.12.2006, Annexures A-5, warning the respondent that in case payment of Rs.1,38,98,662/- is not made within four days, the petitioner would demobilise the site.

(3.) The petitioner demoblised the site and thereafter raised a claim for Rs.54,50,000/- for work done, Rs.3,42,000/- as refund of security and Rs.0.91 lacs and Rs. 3.50 lacs as amounts arbitrarily, withheld by the respondent.