BHOORATHNOM CONSTRUCTION COMPANY PVT. LTD. Vs. STATE GOVT. OF RAJASTHAN, THR. SECRETARY LOCAL SELF GOVERNMENT DEPARTMENT

JUDGEMENT

(1.) Counsel for the parties agree that the valid agreement dtd. 17/7/2009 in respect of Karauli Drinking Water Distribution Network and Misc. Work was executed between the applicant and the non-applicant-Rajasthan Urban Infrastructure Development Project (RUIDP) through authorized officer on 17/7/2009. They also agree that clause 24 thereof provides for appointment of arbitrator for adjudication of disputes in regard to and relating to the agreement dtd. 17/7/2009.

(2.) Mr. Sameer Jain counsel for the applicant submitted that disputes qua the agreement dtd. 17/7/2009 have arisen where the applicant inter alia claims price escalation for work executed with delay for reasons attributable to RUIDP. He submits that the applicant also claims certain due payments for Misc. work and not paid for, as also damages for breach of contract by the non applicant. Further recovery of amount of bank guarantee encashed wrongly by the non-applicant towards purported liquidated damages is also sought from the non-applicant.

(3.) Mr. A.K. Pareek counsel for the non-applicant respondent submitted that it was the applicant which was in breach of its obligation to complete the project assigned under the agreement dtd. 17/7/2009 within the contractual time period. From submission of counsel disputes relating to and arising from the agreement dtd. 17/7/2009 have arisen. Such disputes are arbitrable under clause 24 thereof.