BANGLADESH POWER DEVELOPMENT BOARD Vs. ARAB CONTRACTOR (BD) LTD
LAWS(BANG)-2009-3-4
SUPREME COURT OF BANGLADESH
Decided on March 25,2009

Bangladesh Power Development Board Appellant
VERSUS
Arab Contractor (Bd) Ltd Respondents

JUDGEMENT

MD.ABDUL MATIN, J. - (1.) These petitions for leave to appeal are directed against the judgment and order dated 22.07.2008 and 23.07.2008 passed by the High Court Division in First Miscellaneous Appeal Nos. 8, 9 and 10 of 2007 dismissing the appeal and upholding the order No.9 dated 23.08.2006 passed by the Court of learned District Judge, Dhaka in Arbitration Miscellaneous Case Nos. 791,792 and 790 of 2006 rejecting the application filed by the petitioners under section 42(1) of the Arbitration Act, 2001.
(2.) The facts, in short, are that the petitioner No.1 entered into an Agreement being No.3.17/Lot-1/2000/310 dated 30.03.2000 with M/s Arab Contractors-Shah Islam Joint Venture for the construction of the main building with some auxiliary structures of the 210 MW Siddhirganj Power Station situated at Siddhirganj, Narayanganj. The said Joint Venture was a consortium of a local firm (i.e. Shah Islam) and a United Arab Emirates based firm (i.e. Arab Contractors LLC, Dubai). The agreed price for completion of the contractual work was fixed at Tk. 33, 61, 46, 298.00/- (Taka Thirty-Three Crores, Sixty-One Lacs, Forty-Six Thousand, Two Hundred and Ninety-Eight). This amount was offered by the said Joint Venture in its bid during a competitive tender process. The said Joint Venture having been adjudged the lowest bidder, the price was offered by it was accepted by the petitioner No.1. The said Joint Venture later sub-contracted the work to the respondent No.1 by a power of Attorney dated 15.05.2001.
(3.) Clause 41 of the Special Conditions Contract (Which was incorporated into the said agreement dated 30.03.2000) provided for arbitration between the petitioner No.1 and the said Joint Venture in the event of dispute. The arbitration clause stated as follows:- "The Employer and contractor should amicably settle all kinds of disputes arising in respect of the work & related matters through mutual communication/discussion. Any dispute that cannot be amicable settled shall be decided by the Arbitration Act, 1940 as prevailing in Bangladesh." ;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.