SAB INDUSTRIES LIMITED Vs. H.P. STATE ELECTRICITY BOARD
LAWS(HPH)-1997-8-32
HIGH COURT OF HIMACHAL PRADESH
Decided on August 01,1997

SAB INDUSTRIES LIMITED Appellant
VERSUS
H.P. STATE ELECTRICITY BOARD Respondents




JUDGEMENT

R.L.KHURANA,J. - (1.)THIS is petition under Section 20, Arbitration Act 1940, hereinafter referred to as the Act, for the appointment of an arbitrator for adjudicating upon the disputes between the parties.
(2.)BRIEFLY stated, the facts of the present case are these. The plaintiff Messrs S.A. Builders Ltd., is a Company registered under the Indian Companies Act, 1956 and is engaged in the work of construction of various projects of various organisations of the Government of India and other State Governments. On and with effect from 15 -9 -1995 the name of the company was changed to S.A. Builders and Financiers Ltd. Pursuant to an order dated 28 -12 -1995 of BIFR, this Company was merged with Messrs. Steel Strips Alloy Ltd. renamed as SAB Industries Ltd.
In response to the notice issued by the defendants inviting tenders for the construction of Gaj Hydel Project (10.5 MW), the plaintiff submitted its tender for the said work. The tender submitted by the plaintiff was accepted and the work was allotted to it at a total cost of Rs. 4,83,41,977/ -. The necessary agreement in respect thereto came to be executed between the parties on 13 -2 -1989. As per the terms of the agreement, the work was to be completed within a period of three years. The date stipulated for the start of the work was within thirty days after the issuance of Letter of Intent, that is, 7 -3 -1989. The stipulated date of completion of the work was thus 6 -3 -1992. The work was actually by the plaintiff on 26 -5 -1989 after mobilising their labour, machinery etc. worth rupees one crore.

(3.)THE agreement entered into between the parties provided for certain essential requirements as to supply of materials, designs, maps and instructions from time to time by the defendants. The supply of material, plans, instruction etc. were considerably delayed by the defendants. At times even the payments were unreasonably withheld by the defendants. As a result, delay was caused in the execution of the work.


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