HOOGLY RIVER BRIDGES COMMISSIONERS Vs. MBL INFRASTRUCTURE LTD.

JUDGEMENT

(1.) This is an application under sec. 34 of the Arbitration and Conciliation Act, 1996 challenging an award dtd. 29/6/2020. By the award, the respondent (claimant) has been awarded a sum of Rs.14,68,39,152.00 plus interest until actual payment alongwith costs of Rs.1,37,55,371.00 and the entirety of the counterclaim of the petitioner has been rejected.

(2.) Briefly, the respondent is engaged in construction and setting up of infrastructure projects. Pursuant to a notice issued by the petitioner, inviting bids for construction of a permanent bus terminus alongwith a multistoried commercial complex of B+G+5 floors situated at G.T. Road, Serampore Municipality, Hooghly, West Bengal, the respondent had submitted its bid for Rs.54.66 crores which was accepted. Subsequently, the parties entered into a formal works contract in writing dtd. 4/12/2013.

(3.) On the alleged ground that there was delay in the completion of the project, the petitioner by a notice dtd. 17/5/2017 terminated the contract. In response, the respondent by a letter dtd. 26/6/2017 requested for extension of time to complete the contract. Significantly, the justification raised by the respondent pertained to delay due to poor ground conditions, delay in approach road construction, delay in release of drawings, delay due to non-finalizing of finishing items, adverse weather conditions, delay due to encroachment and obstruction, delay in approval of extra supplementary works, delay due to effect of demonetization and banning of currency note of Rs.500.00 and Rs.1000.00 by the Government of India, delay caused due to cash flow problems and other factors beyond the control of the respondent contractor. In such circumstances, the respondent invoked the arbitration clause and referred the disputes to the Arbitral Tribunal.