INDIAN OIL CORPORATION Vs. ESTEEM PROJECTS PRIVATE LIMITED

JUDGEMENT

(1.) Heard Mr. R. Choudhury, the learned counsel for the appellant. Also heard Mr. G. N. Sahewalla, the learned senior counsel assisted by Mr. H. K. Sharma, the learned counsel for the respondent.

(2.) This appeal under Sec. 37 (1) (c) of the Arbitration and Conciliation Act, 1996 has been filed by the appellant, namely, Indian Oil Corporation (Bongaigaon Refinery), impugning the judgment and order dtd. 26/2/2019 passed by the Court of the learned District Judge, Chirang, Kajalgaon, in Misc. (Arbitration) Case No.18/2016, whereby the application filed by the appellant under Sec. 34 of the Arbitration and Conciliation Act, 1996 for setting aside the arbitral award dtd. 28/4/2016 was dismissed.

(3.) The facts relevant for consideration of the instant appeal, in brief, are that the respondent herein was found as the successful bidder in a tender floated by the appellant for the work of "Heater package for the DHDT (Diesel Hydro- Treater) project", Dhaligaon, Assam. The Letter of Intent (LOI) in respect of the work order No.2007/PC-1234 was issued in favor of the respondent on 16/8/2007. The letter of acceptance (LOA) was issued on 29/7/2007. The lump sum contract value of the work to be carried out by the respondent was USD 17,80,000/- (USD Seventeen Lakh Eighty Thousand Arb.A./18/2019 Page 2 Only) plus Rs.18,72,20,000.00 (Rupees Eighteen Crore Seventy-Two Lakh Twenty Thousand Only). The commencement date of the said contract was 16/8/2007 and the date of completion was 13 months from the date of LOI i.e., on 15/9/2008. However, the work was completed by the respondent on 10/8/2011, after a delay of 1059 days in completing the contract work.