NAGARJUNA CONSTRUCTION COMPANY LTD Vs. STATE OF JHARKHAND, WATER RESOURCE DEPARTMENT, THROUGH ITS SECRETARY, RANCHI

JUDGEMENT

(1.) : The petitioner is represented by Ms. Priya Kumar, assisted by Shri deepak Sinha, Advocate and learned Advocate General, assisted by junior counsel, appears on behalf of the State.

(2.) THE writ petition is preferred for quashing the letter contained in Memo No. 1/YO13341/20012048, Ranchi dated 17.06.2008 (Annexure12) and order of deregistration and blacklisting dated 10.06.2010 issued by Respondent No. 3Chief Engineer, Water Resource Department, Government of Jharkhand, Ranchi.

(3.) THE petitioner made a claim of Rs. 10,72,66,483/before the Executive Engineer, Water Ways Division, Water Resource Department, Chaibasa, Jharkhand, which was rejected by the respondents on 20.12.2006 stating therein that there is no infrastructure on the site, neither any machinery is installed nor any work has commenced and, therefore, the claim was rejected outright. It was contended that the work commenced on 10.09.2004 and the petitioner had mobilized men, material, machinery, equipments etc., but could not proceed. The petitioner specifically expressed its inability to commence the work as per the agreed programme on account of non handing over work fronts. The said letter is annexed as Annexure6 to the writ petition. An application for extension of time was given by the petitioner up to 10.09.2009 on account of the reason that the respondents did not make the work front available due to nonclearance of the forest land. Since the claim on behalf of the petitioner for Rs. 10,72,66,483/incurred by the petitioner as well as loss calculated up to 30.10.2006, was refused by the respondent, the petitioner invoked the remedy of arbitration clause, as provided in Clause23 of the agreement. Perusal of the letter dated 25.05.2007 written to the Chief Engineer, Water Resource Department, it transpires that a claim was referred to the Chief Engineer for adjudication and recommendations, but there was no response for a period of 45 days from the Chief Engineer, therefore, the petitioner invoked the arbitration clause under the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'Arbitration Act'), suggested two names as Arbitrator, Shri P. N. Sinha, retired Chief Engineer, 32, Opposite Road No. 4, Budha Bihar, Ashok Nagar, Ranchi, Jharkhand and the second name was Shri Ramjee Pandey, retired Chief Engineer, H.N.225, Nehru Nagar, Patna.