Singh & Associates, Founder Manoj K Singh, Advocates & Solicitors was representing the infrastructure development company Era Infra Engineering Company (EIEL) against Aravali Power Company Private Limited (APCL) in an Arbitration relating to the civil works executed by EIEL at APCPL's power plant at Indira Gandhi Super Thermal Power Project (IGSTPP).
APCPL is a Joint venture company with 50% share of NTPC Ltd, 25% of Haryana Power Generation Company Ltd (HPGCL, Haryana State company), and 25% of Indraprastha Power Generation Company Ltd (IPGCL, Delhi State company).
APCPL awarded the contract to EIEL for carrying out civil works of the Main Plant and offsite civil works at the IGSTPP (3x500MW) at Jhajjar, Haryana. The total contract value was Rs.284,94,97,820/- (Rupees Two Hundred Eighty Four Crore Ninety Four Lacs Ninety Seven Thousand Eight Hundred and Twenty only). The Letter of Award was issued by APCPL on 10.09.2007 and formal contract was executed between the parties on 28.11.2007. There was slow progress of work and both the sides blamed each other for the delay. Although the commercial operations of all the three Units were commissioned in 2013 itself, however, the off-site works were not completed till date.
EIEL's case is that APCPL delayed the project by delaying the issuance of drawings, fronts and owner free issue materials, whereas APCPL alleges that EIEL failed to mobilize at site as per the agreed Schedule. Ultimately, APCPL terminated the Contract on 10.03.2016 and off loaded the entire work of EIEL.
Being aggrieved by all these acts of APCPL, EIEL invoked Arbitration and the Arbitration commenced as per the provisions of the Arbitration and Conciliation Act, 1996 (as amended in 2015). In this matter the Award has been pronounced by the Hon'ble Arbitrator within 18 months from the date of reference.
In the Final Award dated 02.09.2017, the Hon'ble Tribunal held that it is APCPL, which has majorly contributed towards the delay and therefore, has breached the terms of the Contract. The Hon'ble Tribunal has also agreed with the contention of EIEL that the termination of the Contract by APCPL is illegal as it failed to serve mandatory Notice as per Clauses of the GCC.
The Hon'ble Tribunal, as a consequence, allowed various Claims of EIEL to the tune of more than Rs.55 Crores along with interest. The Hon'ble Tribunal has also dismissed all the Counter Claims of APCPL for Risk and Cost and Liquidated Damages. This Award will certainly boost the infrastructure industry.