Pioneer Properties & Construction Co v. Govt of NCT Delhi & Ors

1. The present petition has been filed by the petitioner under Section 11 of the Arbitration and Conciliation Act, 1996 for appointment of an Arbitrator.

2. A tender for the work of demolition and reconstruction of the general chaupal and Naraina Village Delhi was floated. On completion of the tender process, the petitioner was declared as the L-1 agency and was asked to deposit the amount of performance guarantee within seven days. The date of commencement of work was indicated as the 15th day from the date of issue of letter of commencement. Accordingly, the petitioner by letter No.PP&CC/CD-I/5XFC/2007/2 dated 5th February, 2007 forwarded the fixed deposit receipt No.040448 dated 5th February, 2007 for an amount of `1,08,198/-. Due to an inadvertent delay within the department, the letter of 2013:DHC:2166 commencement was issued on 21st May, 2007 by letter No.F.22(70)/2006- 7/ABCD-I/1008-21 whereby the work was awarded to the petitioner for an amount of `21,63,952/-.

3. Notice of the petition was issued to the respondents. Reply by way of affidavit of Sh.Raveender Kumar was filed by the respondent No.1 in which it is stated that several request were made to the petitioner to start the work and despite the provisional extension of time accorded to complete the work till 30th June, 2008, the work was not started. Thereafter, a show cause notice under Clause 3(a) and Clause 3(b) of the agreement was issued to the petitioner by letter dated 30th May, 2008. Despite the said notice, the petitioner did not start the work or replied to the said notice within the stipulated period of seven days. As a result, the department rescinded the contract by letter dated 18th July, 2008. After more than two years i.e. 11th August, 2010, the petitioner raised some claims on the respondent No.1 and on 4th January, 2011, the petitioner requested for appointment of an Arbitrator. The relevant clause 25(ii) of the agreement provides that if the contractor does not make any demand for appointment of arbitrator in respect of any claims in writing within 120 days of receiving the intimation from the Engineer-incharge that the final bill is ready for payment, the claims of the contractor shall be deemed to have been waived and absolutely barred and the Government shall be discharged and released of all liabilities under the contract in respect of these claims.

4. In the present case, the contract of the petitioner was rescinded on 18th July, 2010. Thus, it is clear that the claims of the petitioner after a lapse of more than two years on 11th August, 2010 are barred. The petitioner is now estopped from raising any such claims in terms of clause 25(ii) of the agreement.

5. I also agree with the learned counsel for the respondent that the respondent, in view of the said clause, is absolved of all the liabilities. The petition is not maintainable. The same is dismissed.

JUDGE APRIL 29, 2013