1. Bharat Heavy Electricals Limited (hereafter ‘BHEL’) has filed the
present petition under Section 34 of the Arbitration and Conciliation Act,
1996 (hereafter ‘the Act’) assailing the arbitral award dated 15.07.2016
(hereafter ‘the impugned award’).
2. The impugned award was rendered by the sole arbitrator in respect of
disputes that had arisen between the parties in relation to an agreement dated
24.10.2008 (hereafter the ‘Agreement’).
3. BHEL floated a tender for construction of “Complete Plant Boundary
Wall including Gates at 2X750 MW Pragati III Combined Cycle Power at
Bawana, Delhi” (hereafter ‘the works’). Garg Builders submitted its bid
which was accepted by issuance of the Letter of Intent dated 09.09.2008
(hereafter ‘the LOI’). Thereafter, on 24.10.2008, the parties entered into an
O.M.P. (COMM) 28/2017 Page 1 of 13
Agreement. The stipulated period of completion of the works was seven
months; the date of commencement of the works being 24.09.2008 and date
of completion being 23.04.2009. Garg Builders furnished a bank guarantee
towards security deposit for a sum of ₹11,13,550/- dated 01.10.2008
(hereafter ‘the BG’) issued by the Axis Bank.
Source: Indian Kanoon