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Showing contexts for: rrt in Sepco Electric Power Construction Corp vs Talwandi Sabo Power Ltd. And Ors on 20 January, 2016Matching Fragments
For the purpose of payments of the outstanding amounts, a meeting, on 9.9.2015, was held in China between the petitioner and respondent Nos.1 and 2 through the Senior Management Official of respondent No.2, whereby consensus was reached between the parties that the petitioner will give the detailed plan for the 141 nos opening points, out of which 7 major points would be completed by approximately end of December, 2015 and for Unit No.2 (Unit # 3), the time taken may be longer. The first batch of hot air gates will be installed by (approximately) end of December, 2015 and the remaining will be sent to site by (approximately) end of December, 2015 and the installation of the same will depend on the shutdowns of units. The said 7 major points have been defined in the said Minutes of Meeting. It was further agreed that the petitioner would expedite the completion of the next two units' RRT expeditiously, aiming to ARB No.222 of 2015 (O&M) { 10 } achieve the Unit # 3 start up for RRT purpose on best efforts by the end of October, 2015 and Vedanta-respondent No.1 will support in the milestone payments, which shall not be held due to open points and both the parties shall prepare agreed list of open/defects points with completion dates. Out of the total outstanding payment of USD 92 million + INR 67 crores and Vedanta had confirmed the payment of USD 65 Million between 1st Oct 15 to 15th Oct 15, which has admittedly been paid. USD 27 million will be paid by approximately mid-January, 2016 and vis-a-vis payment of `30 crores already advised to be released on 9.9.2015 and `37 crores to be released between 1st October 15 to 15th Oct 15. Vedanta had to clear the dispatch of Mill hot air gates and will issue the MDCC for 44C tomorrow. The amount of Advance Bank Guarantees to be deducted will be reconciled by both Vedanta and SEPCO. Vedanta had agreed to appoint dedicated task fore and give names of the team member within 15 days to discuss claims of either side. Similarly, SEPCO shall also do the same.
It has been further submitted that subsequent to 9.9.2015, a meeting was held on 17.11.2015 and the minutes were also recorded, which have been attached at Pages 830 and 831 of the paper book, whereby both the parties agreed for expediting the RRT and handing over Unit # 3, with available resources, the petitioner shall light up Unit # 3 on 18.11.2015 and the Unit will achieve full load and Unit shall complete 3 days full load continuos operation till 26.11.2015 and thereafter TSPL shall issue RRT certificate and Performance Acceptance Certificate (PAC) immediately after achievement of point 1. Purpose of this MOM was to consider the RRT and handing over Unit # 3 and SEPCO had undertaken to rectify the equipment/system defects within jointly agreed timeline, such schedule ARB No.222 of 2015 (O&M) { 11 } shall be finalised within 30 days of unit hand over.
He, thus, urged that the present case does not all within the ARB No.222 of 2015 (O&M) { 18 } special equities/ realm and in this regard has drawn the attention of this Court to the judgments of Hon'ble Supreme Court rendered in BSES Ltd. (Now Reliance Energy Ltd.) Versus M/s. Fenner India Limited & another, 2006 (2) SCC 728 and as well as Dwarikesh Sugar Industries Limited Versus Prem Heavy Engineering Works (P) Limited, (1997) 6 SCC 450. Mr.Chopra has submitted that second unit (Unit # 3) had started around 28.12.2014, but was stopped subsequent to fire in Air Pre-Heater (APH) on 5.1.2015 and the said fire occurred owing to the fault in the design. Though the said repair could have been done within a period of 20 days, but the same was repaired over an extended period of five months and thereafter the petitioner flatly refused to start up the second unit (Unit#3) and rather had raised the bills of RRT. He has drawn the attention of this Court to the letter (Annexure R1/1) to demonstrate that the petitioner has been intentionally raising the demand, whereas the contents of the letter would show that the second unit (Unit # 3) had not completed. In essence, RRT has not been done. Copy of one of the letters dated 30.10.2015 has been annexed as Annexure R-1/7. Rather, the petitioner has been raising unauthorised demand of USD 300 Million, alleged to have been incurred at their hands, which had been varying in various letters, in essence, demand of USD 300 Million has come down to USD 200 Million, which is evident from the contents of letter dated 5.11.2015. Basically, all the payments have been made, but the petitioner failed to rectify the defects and for that defects, the respondent has to reimburse heavy amount from the petitioner and, therefore, the interim order granted by this Court should be vacated.
2. SEPCO1 will expedite the completion of the next 2 units' RAMESH KUMAR RRT expeditiously, aiming to achieve the unit # 3 startup for ARB No.222 of 2015 (O&M) { 24 } RRT purpose on best efforts by the end of October 2015. Vedanta will support in the milestone payments. These milestone payments will not be held due to open points but both Vedanta and SEPCO will prepare agreed list of open/defects/ points with completion dates.