TATA PROJECTS LTD Vs. CENTRAL PUBLIC WORKS DEPARTMENT

JUDGEMENT

(1.) The present application under Sec. 11(6) of the Arbitration and Concilliation Act 1996, (hereinafter referred to as the 'Act of 1996') has been preferred for appointment of an independent and impartial arbitrator.

(2.) The facts of the case are that an agreement was entered into between the parties for the work of "Execution of construction of various buildings for permanent campus IIT Jodhpur (Phase-2) at Karwar, NH-65, Jodhpur, Rajasthan". In terms of the agreement, the work was to be completed within a period of 21 months from the date of the integrity agreement and for the purpose, Letter of Acceptance dtd. 29/9/2017 was issued by the respondent department. However, the work in question could not be completed within the time stipulated i.e. by 12/7/2019, hence, the application for extension of time was preferred by the applicant company and the time was hence extended up to 31/7/2021. Ultimately, the work was completed and the completion certificate dtd. 27/8/2021 was issued by the respondent department.

(3.) As per the applicant firm, the reasons for the delay caused in completion of the work were not attributable to it and hence it was entitled for the compensation/ damages/ extra cost incurred towards completion of the delayed work. Vide letter dtd. 18/12/2021, a demand for the payment of the said additional costs was made and a claim of Rs.71.60 crores qua the same was raised by the firm. However, the said claims were rejected by the respondent authority vide letter dtd. 13/1/2022.