Delhi High Court - Orders
Union Of India vs M/S K.R.V. And Associates on 8 February, 2024
Author: Prathiba M. Singh
Bench: Prathiba M. Singh
$~39
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (COMM) 75/2024, I.As. 3032/2024, 3033/2024, 3034/2024
& 3035/2024
UNION OF INDIA ..... Petitioner
Through: Mr. Sandeep Kumar Mahapatra, Mr
Sugam Kumar Jha, and Mr
Tribhuvan Advs (M. 9811472444)
versus
M/S K.R.V. AND ASSOCIATES ..... Respondent
Through: Mr. Kunwar Chandresh, Ms.
Poonam Prasad, Ms. Anushka
Nigam, Advs. (M. 9311577904)
CORAM:
JUSTICE PRATHIBA M. SINGH
ORDER
% 08.02.2024
1. This hearing has been done through hybrid mode. I.A.3035/2024 (for delay)
2. This is an application seeking condonation of delay in refiling of the petition. For the reasons stated in the application, the delay of 18 days in refiling the petition is condoned. Application is disposed of. I.A.3033/2024 (for exemption)
3. This is an application seeking exemption from filing certified copies/typed copies and complete arbitral record. Original documents shall be produced/filed, if sought, strictly as per the provisions of the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (hereinafter, 'Commercial Courts Act') and the Delhi High Court (Original Side) Rules, 2018.
O.M.P. (COMM) 75/2024 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 12/02/2024 at 21:52:40
4. Exemption is allowed, subject to all just exceptions.
5. Accordingly, the application is disposed of.
O.M.P.(COMM) 75/2024 & I.A. 3032/ 2024 & I.A.3034/2024
6. This is a petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the impugned award dated 2nd August, 2023. By the impugned award the Arbitral Tribunal has granted various claims of the Contactor.
7. The contract was in respect of "Construction of the ITBP road to the Indo-China border from Niti to Geldung in the State of Uttarakhand (SH:
Road surfacing work, traffic Signal & Longitude Drainage System from RD 0.0 Km to 23.99Km)-Balance Work". It is the position on record that the work was to be executed in a sensitive border area. The awarding of work took place after the pandemic COVID-19. The work was awarded to the Respondent/Contractor vide agreement dated 20th April, 2020. The case of the Contractor was that the site was not handed over to the Contractor so the work could not be commenced.
8. Ld. Counsel for Union of India submits that the partial site was handed over on 30th June, 2020 however there was no mobilization on site. Thus, the Petitioner issued foreclosure notice on 3rd August, 2020 and terminated the contract on 13th August, 2020.
9. The Contractor's case is that there were landslides and there was adequate mobilization, which was done by the Contractor, which was examined by the Arbitrator.
10. There can be no doubt that when contracts of this nature are involved, especially in border areas and other sensitive areas, timely construction is of prime importance. Such contracts have to be executed with extra level of O.M.P. (COMM) 75/2024 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 12/02/2024 at 21:52:40 diligence. However, in the present case it is noticed that the pandemic had also delayed the handing over of the site. The allegation of the Petitioner is that there was no mobilization on ground for more than a month.
11. The award requires to be examined. Let the Arbitral record be requisitioned. Arbitral Tribunal has granted refund of the entire amount, which was forfeited through bank guarantee, loss of profits, security deposit, on site and of site expenses as also the interest @ 10% per annum. The matter requires further consideration.
12. Subject to deposit of Rs.30 lakhs with the Registrar General of this Court, the operation of the impugned award shall remain stayed.
13. The Respondent/Contractor is free to move an application for seeking release of said amount after furnishing adequate security.
14. Issue notice. Let reply be filed within six weeks. Rejoinder thereto be filed within four weeks thereafter.
15. List before the Joint Registrar on 8th April, 2024.
16. List before the Court on 9th August, 2024.
PRATHIBA M. SINGH, J.
FEBRUARY 08, 2024/dk/bh O.M.P. (COMM) 75/2024 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 12/02/2024 at 21:52:41