Delhi High Court - Orders
National Highways Authority Of India vs M/S Simplex Infrastructures Ltd on 23 September, 2024
Author: Prateek Jalan
Bench: Prateek Jalan
$~1
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (COMM) 39/2024
NATIONAL HIGHWAYS AUTHORITY OF INDIA .....Petitioner
Through: Mr. A.P. Singh & Mr. Naman
Sarawat, Advocates.
versus
M/S SIMPLEX INFRASTRUCTURES LTD .....Respondent
Through: None.
CORAM:
HON'BLE MR. JUSTICE PRATEEK JALAN
ORDER
% 23.09.2024 I.A. 1325/2024 Exemption allowed, subject to all just exceptions. The application stands disposed of.
O.M.P. (COMM) 39/2024 & I.A. 1324/2024
1. By way of this petition, under Section 34 of the Arbitration and Conciliation Act, 1996 ["the Act"], the petitioner-National Highway Authority of India ["NHAI"] assails an arbitral award dated 30.09.2023.
2. The award deals with a dispute for additional costs on account of prolongation of a contract dated 22.02.2006 ["the contract"], by which the respondent was awarded the contract for widening and strengthening to 4 lane of existing single lane/intermediate lane carriage way of NH-57 over a stretch of river Kosi in the state of Bihar.
3. Mr. A.P. Singh, learned counsel for the petitioner, raises two grounds in support of the challenge:-
O.M.P. (COMM) 39/2024 Page 1 of 3This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/09/2024 at 23:01:05 a. He submits that clause 44.1 of the contract requires an extension of time to be granted by the engineer only after consulting with both parties, whereas the extension of time granted in this case, upon which the learned arbitral tribunal has also relied, was granted without consultation with NHAI. Mr. Singh draws my attention to a letter of NHAI dated 26.12.2012 [page 348 of the paper book] in this connection. According to him, the learned arbitral tribunal has failed to consider this aspect.
b. With regard to quantification of the claims, it is submitted that clause 70.3 of the contract incorporates all materials in the escalation formula, whereas the tribunal has awarded prolongation costs dehors the said formula on the erroneous basis that many of the items used for execution of the work are not included in the basket of items considered for determining the price index of the Government of India. It is submitted that once a formula has been provided which covers all material costs, it was not open to the learned arbitral tribunal to enter into any controversy with regard to the adequacy of the formula.
4. These issues require further consideration.
5. Issue notice. Notice be served upon the respondent, in addition, through learned counsel appearing on its behalf before the learned arbitral tribunal as well as by speed post at the registered office of the respondent-company appearing in the database of the Ministry of Corporate Affairs, Government of India.
6. Parties are at liberty to file any additional documents which were part of the arbitral record on the record of this Court within eight weeks O.M.P. (COMM) 39/2024 Page 2 of 3 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/09/2024 at 23:01:05 from today. They may also file their written submissions with the same period.
7. List on 12.02.2025.
PRATEEK JALAN, J SEPTEMBER 23, 2024//'pv'/ O.M.P. (COMM) 39/2024 Page 3 of 3 This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 25/09/2024 at 23:01:05