SDB SPS (JV), A JOINT VENTURE BETWEEN SOM DUTT BUILDERS PRIVATE LIMITED AND SP SINGH CONSTRUCTION PVT LTD , NEW DELHI Vs. BIHAR RAJYA PUL NIRMAN NIGAM LTD , BIHAR AND OTHERS

JUDGEMENT

(1.) This application has been filed under Section 11(6) of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as "the Act") seeking constitution of an Arbitral Tribunal for adjudication of the dispute that has arisen between the parties.

(2.) Facts in nutshell goes to show that, that on 4.5.2010 the respondent-Bihar Rajya Pul Nirman Nigam issued a tender for construction of 4000 meter long 4 lane High Level Bridge along with 17 km long approach road across river Ganga connecting NH-30 (Arrah) & NH 19 (Chapra) in the State of Bihar. Bid of the petitioner was accepted on 8.7.2010 for Rs. 539.42 crores and the work was given to the petitioner which was to be completed up to 4.7.2014. Clause 25 of the Agreement in question contemplates an arbitration clause and according to Clause 25(i) if the contractor has any grievance he is to first raise the dispute before the Deputy Chief Engineer who is required to adjudicate the same or pending decision within one month and thereafter appeal lies to the Managing Director.

(3.) Initially when the work was not completed on time, dispute raised between the parties in Request Case No. 14 of 2016 and this Court in exercise of its jurisdiction under Section 11(6) of the Act has already constituted a one-member Arbitral Tribunal headed by Hon'ble Justice (Retd.) S. B. Sinha. The matter is pending before the learned Arbitrator and it is the case of the petitioner that during the pendency of the arbitration proceeding further dispute has arisen but the work continued when the arbitration proceedings were pending and, therefore, further claim having arisen the petitioner raised the claim before the competent authority and the Managing Director having rejected the same by his communication dated 8th of November, 2017 (Annexure-24) this application has been filed.