Ircon International Ltd vs Patil Rail Infrastructure Pvt Ltd on 1 June, 2018

CORAM:
HON’BLE MR. JUSTICE S. RAVINDRA BHAT
HON’BLE MR. JUSTICE A.K. CHAWLA

MR. JUSTICE S. RAVINDRA BHAT

%

1. The appellant (hereafter “IRCON”) unsuccessfully challenged an arbitration
award (dated 6 August, 2015) under Section 34 of the Arbitration and Conciliation Act,
1996 (hereafter the “Act”); the award allowed some claims of the respondent (hereafter
described as “Patil”), along with interest.

2. The facts are that IRCON awarded the work of „Manufacture, Supply,
Transportation and Delivery of Pre-stressed Mono-Block Concrete Sleepers for Broad
Gauge Railway Track (1676 mm) suitable for 60 kg rail section, for the restoration of
various railway lines in Northern Province of Sri Lanka‟ to Patil, by an agreement dated
14.05.2012. IRCON alleged that Patil was liable for the sleepers supplied by it and later
found to have developed cracks. IRCON relied on Clause 8 of the Letter of Acceptance
(LOA) and Clause 15 of the Special Condition of Contract (“SCC” hereafter), and sought
replacement of such defective sleepers, during the “Defect Liability Period”. Patil alleged

FAO(OS)(COMM)104/2018 Page 1 of 11
that the cracks had not appeared due to any manufacturing defects; the resultant disputes
were referred to arbitration leading in the Impugned Award.

Source: Indian Kanoon

Leave a Reply

*