NORTH EASTERN ELECTRIC POWER CORPORATION LIMITED Vs. GAMMON INDIA LTD.

JUDGEMENT

(1.) THIS appeal under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 is directed against the judgment and order dated 29.11.2010 passed by the learned Additional Deputy Commissioner/District Judge, Shillong in Arbitration Case No.1(T)/2008 for refusing to set aside the Arbitration Award dated 21.04.2008 passed by the Arbitral Tribunal.

(2.) HEARD Mr. VK Jindal, learned senior counsel assisted by Mr. S. Dey, learned counsel for the appellant -North Eastern Electric Power Corporation Limited (for short 'NEEPCO ') and Mr. S. Sen, learned counsel for the respondent No.1 -M/s Gammon India Ltd.

(3.) ON 02.02.1996, the appellant -NEEPCO, who had issued the work order dated 19.09.1995 in favour of the respondent No.1 -M/s Gammon India Ltd., entered into a Contract Agreement with respondent No.1 -M/s Gammon India Ltd. to carry out the said contract work and there is an Arbitration Clause being Clause 66 in the Contract Agreement. Under the said Arbitration Clause 66, if the contractor is dissatisfied with the final decision of the Chief Engineer or the appellant -NEEPCO on the protest or objection made by the contractor (respondent No.1 -M/s Gammon India Ltd.) in accordance with the procedure prescribed in Clause 66.1(b), the contractor may within 15 days after receiving notice of such decision, give notice in writing to the Chief Engineer requiring that the matter be submitted to arbitration and furnishing detailed particulars of that dispute or difference specifying clearly the point of issue. The arbitration shall be effected by an Arbitration Board consisting of two members. One selected by the Corporation (appellant -NEEPCO) and the other by the respondent No.1 -M/s Gammon India Ltd. The two arbitrators may appoint the third and Presiding Arbitrator. Clause 66 of the Agreement dated 02.02.1996 is quoted hereunder: -