- (1.) The petitioner company entered into a contract with the railways for carrying out certain civil work in the year 2005. On 01.02.2008 the said agreement was terminated by the Railways. There were mutual allegations of default. Arbitration was sought by a letter of the petitioner dated 29.02.2008. A panel of three arbitrators entered upon reference on 25.7.2008. The arbitration is still pending.
(2.) In the meantime, the petitioner entered into four other contracts with the Railways which are dated 03.04.2008, 16.06.2008, 26.06.2008 and 12.11.2008 respectively. On 03.11.2009 Railways issued a notice directing withholding payment of Rs. 4,42,35,921/- from the running bills of the petitioner in respect of the aforesaid other four contracts. Apparently, this amount represents the claim of the Railways in respect of the contract of 2005.
(3.) It is common ground that the amount has been withheld from the running bills of other contracts by way of lien permissible under Clause 52 and 52 A of the General Conditions of the Contract (GCC for short) which were part of the 2005 agreement.;