ZEAL CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) Contract, for supply and staking of PCC Blocks of size 225 mm x 112 mm x 200 mm in M-50 Grade Cement concrete for surfacing works between KM 104 and 106 on Srinagar Sonmarg Goomri Road, was awarded to the petitioner for an amount of Rs. 1,38,33,344/- only. The contract was awarded vide communication dated 24-04-2006 and site was handed over on 01-06-2006. The petitioner was informed that the date of completion of work would be 29-08-2006. The date was, however, extended upto 31-08-2007 by levying compensation of Rs. 15,000/- . The respondents, in their reply affidavit/objections, have further pleaded that the work was not completed within the time extended for completion of the same and that delay was caused because of non submission of mixed design from the reputed laboratory approved by the OC contract.

(2.) As the contract work could not be executed in full, repeated communications were sent to the petitioner. Since the petitioner, allegedly, failed to complete the work, the respondents, by invoking clause 28 of the General Conditions of Contract IAFW-1815(R) (GCC for short), terminated the contract at the risk and cost of the petitioner. The work was ordered to be re-tendered and the contract was awarded for balance work in favour of M/S. Chenab Construction Company at the value of Rs. 2,07,43,056/- . In view of the re-tendering of work and awarding contract for completion of work to another contractor, the respondents sought to recover the amount of Rs. 69,09,712/- from the petitioner for which a letter of recovery was also sent to the petitioner. The pleadings of the parties further reveal that the petitioner was awarded another contract CA No. CE(P)BCN/45/2009-10. The respondents, as per their claim, in order to safeguard the interest of the Government, invoked clause 67 and 70 of the GCC IAFW-2249 and ordered for deferment of payment of Rs. 69,09,712/- out of the payment due to the petitioner in the 2nd contract.

(3.) In view of the dispute raised in respect of execution of work allotted to the petitioner vide acceptance letter No. 800653/23/E8 dated 24-04-2006, the petitioner requested for appointment of an Arbitrator. The competent authority appointed the Arbitrator and arbitration proceedings are going on.