CASE TITLE
PUBLIC WORKS DEPARTMENT ( NATIONAL HIGHWAY) VS M/s BSC-CC & JV, 6-2-913/914
BENCH
HON’BLE CJ MR.SANJIB BANERJEE AND HON’BLE JUSTICE W.DIENGDOH
DATE OF ORDER
19th JUNE 2023
FACTS OF THE CASE
- The appellant has under Section 37 of the Arbitration and Conciliation Act 1996, challenged an order dated 17.05.2023 passed by the commercial court at Shillong.
- The appellant contracted with the respondent for the two-laning highway Shillong to Nogstoin possibly upto Tura.
- The appellant has submitted that the respondent caused delay in the execution of the order due to which value of the contract has been revised.
- For the same reason, claims on account of interest and the like for previous delayed payments have been subsumed.
- On 19.02.2017, the Dispute Review Expert Board(DREB) passed an order finding that the contractor was entitled to a sum in excess of Rs.117 Crore on account of interest on delayed payments and of unpaid bills for bitumen.
- The contract between the parties clearly mentions for two-tier mechanism for the resolution of disputes.
- The arbitral tribunal was set up with two nominees of the two parties and a third arbitrator who was appointed in accordance with the agreement between the parties.
OBSERVATIONS OF THE COURT
- The court categorically stated that the present appeal was a complete waste of judicial time.
- It was found by the Court that the appellant admitted and accepted that it was liable to pay the the amount.
- It was observed by the Court that the appellants had no issue with the decisions of the DREB and thus the appellant was liable to pay the desired sum to the contractor.
- Court said that the cade has been unnecessary stretched beyond its original period. The dispute was resolved through the Arbitration mechanism already wherein the contractor succeeded by obtaining favorable decisions by the authority.
- The court dismissed the appeal.
