M/S Uppal Engg. Co. Pvt. Ltd. vs Bharat Immunologicals And … on 12 October, 2015

1. By this order, I shall dispose of CS (OS) No.2343/2007 for

making Rule of the Court, the Award passed by Brigadier V.K. Sawhney

(Retd). Sole Arbitrator dated October 31, 2007 in dispute between the

parties and the objections filed by the defendant to the said Award. The

dispute between the parties relate to a work for construction of Housing

Complex at Village Gangerwa, Bulandshahar, U.P which was awarded

by the defendant to the plaintiff. The Letter of Intent was dated

December 4, 2001. The total cost of the work was for Rs.200 Lacs and

the time of completion was 15 months. The date of commencement was

CS (OS) 2343/2007 Page 1 of 66
to be reckoned from January 10, 1992 and the date of completion as

April 1993. As noted from the Award, the LOI stipulates escalation of

prices would be paid as per clause 10 CC of CPWD; 75% secured

advance would be paid against material brought at site of work. It is also

noted that a bank guarantee at 5% of the total contract value was to be

tendered by the plaintiff to the defendant. Para 5 of the LOI stipulates,

that a copy of the agreement signed by the defendant with the Architect

namely M/s S.D. Sharma & Associates, was binding on the contract as

well. A formal agreement dated December 5, 1991 was executed

between the parties. The plaintiff raised claims vide letter dated August

7, 1995, which was also in the nature of serving notice for arbitration.

Source: Indian Kanoon

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