PARMAR CONSTRUCTION COMPANY, ENGINEERS & CONTRACTORS, Vs. THE UNION OF INDIA THROUGH GENERAL MANAGER, NORTH WESTERN RAILWAYS

JUDGEMENT

(1.) Petitioner, Parmar Construction Company, has filed this application under section 11 of the Arbitration and Conciliation Act, 1996 praying for appointment of sole Arbitrator to resolve the dispute between the petitioner and respondents arising out of Tender No.AF-BKI/GC/JP/1 dated 12.04.1999.

(2.) Ms. Anjoo Shukla, learned counsel for petitioner submitted that the petitioner was successful bidder in the tender. The contract was signed between the parties on 12.06.1999. The contract was for construction, strengthening and rebuilding of major bridges between Nadbai-Idgah (Agra) in connection with the Agra Fort-Bandikui Gauge Conversion. The work was completed on 31.07.2003. In the contract agreement, the date of completion was 18 months from the date of acceptance 11.10.2000. The work could not be completed by 11.10.2000 owing to the non-cooperative attitude of the respondent. After completion of work, the respondent did not pay final bill. The petitioner submitted his claim under Clause 64(1)(i) of the GCC on 06.09.2005 and prayed for payment thereof or otherwise appoint a sole Arbitrator to resolve the dispute. The respondent neither made the payment of the bill nor accepted the demand of the petitioner for appointment of Arbitrator. Despite this, the respondent gave supplementary contract vide agreement II and III to the petitioner and forcibly got 'No Claim Certificate' signed from the applicant for final bills after execution of III supplementary contract agreement dated 21.06.2011. The respondent, vide letter dated 5.03.2012, supplied the copy of the final bill to the petitioner but did not make the payment.

(3.) Learned counsel argued that 'No Claim Certificate' was given by the petitioner in favour of the respondents under their duress and pressure as the respondents were not making the due payment of the petitioner and the petitioner was in dire need of the money. Even after giving no dues certificate, the respondents failed to pay the due amount to the petitioner. It is surprising that while on the one hand the respondents are alleging that the work was not completed within stipulated time period of 18 months but on the other hand they gave second and third supplementary contracts to the petitioner.