JAI PRAKASH ASSOCIATES LIMITED Vs. NATIONAL HYDROELECTRIC POWER CORPORATION LIMITED
LAWS(DLH)-2007-7-17
HIGH COURT OF DELHI
Decided on July 24,2007

JAI PRAKASH ASSOCIATES LIMITED Appellant
VERSUS
NATIONAL HYDROELECTRIC POWER CORPORATION LIMITED Respondents

JUDGEMENT

SANJAY KISHAN KAUL, J. - (1.) The petition has been filed by the petitioner under Section 11(6) of the Arbitration and Conciliation Act, 1996 ('the said Act' for short) for appointment of an arbitrator on behalf of the respondent in view of the alleged failure of the respondent to appoint their arbitrator in terms of the arbitration clause. It may be appropriate at the inception to note that the petitioner is a leader of M/s Indo Candian Hydro Consortium which was engaged for the Chamera Hydroelectric Project Stage II by the respondent. There were agreements entered into between the consortium and separate agreements with different parties. Learned counsel for the petitioner has clarified that the present petition has been filed by the petitioner in the capacity of the leader of the consortium.
(2.) The dispute which has given rise to this present petition is limited. The respondent wanted an acceleration in the construction programme so as to ensure that the Project was completed ahead of the time as stipulated in the agreement dated 18.07.1999. In furtherance of the same, the petitioner as the leader of the consortium, addressed a letter dated 22.10.2001 setting out certain terms and conditions for the acceleration. This was followed up with another letter dated 05.04.2002. It was finally by the letter dated 09.04.2003 that the respondent agreed to an incentive for such acceleration of the Project. It is not necessary to re-produce the terms of the said letter but suffice to say that the same was addressed to the petitioner as the leader of the consortium. The schedule for such acceleration was laid down and it was stipulated that in case of delay of overall commissioning of the Project beyond October, 2003 no incentive shall be admissible.
(3.) The dispute relates to non payment of this incentive which according to the petitioner is payable to the consortium while according to the respondent the said amount is not payable on account of the failure to meet the requirements of stipulated date for payment of such incentive.;


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