ACE ENGINEERING COMPANY Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has moved the present application under Sec. 9 of the Arbitration and Conciliation Act, 1996 seeking quashment of the Communication bearing No. 180852/693/E8 dtd. 12/6/2023 issued by respondent No. 2 whereby contract for execution of Provision of Technical and OTM Accommodation at Kaksar Base at Kargil has been terminated at the risk and cost of the petitioner. Further order restraining the respondents from allotting the work to any other person or initiating any recovery proceedings against the petitioner has also been sought by way of interim measure.

(2.) Learned Senior Counsel appearing for the petitioner has submitted that by virtue of Communication dtd. 24/5/2023 issued by respondent No. 2, the date of completion of the contract was extended up to 15/6/2023 but before the expiry of the said date, the said respondent issued the impugned Communication dtd. 12/6/2023 which goes on to show the arbitrariness on the part of the respondents. It has been submitted that the contract could not be executed within the initial stipulated time on account of action and inaction attributable to the respondents and not attributable to the petitioner. Therefore, the action of the respondents terminating the petitioner's contract is not sustainable in law. According to learned Senior Counsel, the petitioner is willing to execute the balance work provided the respondents clear the pending bills.

(3.) Issue notice to the respondents.