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2015 (1) TMI 65

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..... hat:- Clause 12 and other sub-clauses show that a high capacity crane (250 T) is included in the Tools and Plants which will be provided by BHEL to the respondent free of charge as per provisions of contract on availability but only upto “drum lifting of Unit II” as specified in clause 12.2.2 - There is no provision either in the Work Order or in the Agreement/Tender Document to entitle the respondent to claim that it was not obliged to pay the higher charges as fixed, subject to the conditions laid down by BHEL from time to time in respect of user of crane for Unit No. III - To the contrary, the extracts from the Tender Document contain a clear stipulation for recovery of such charges from the contractor’s bill/security deposit in one inst .....

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..... The value of the contract awarded in favour of the respondent was ₹ 6,99,40,000/-. Pursuant to disputes and differences, an Arbitral Tribunal consisting of three arbitrators came to be constituted. The Arbitral Tribunal awarded ₹ 69.22 lac on various heads and ₹ 25.39 lac on account of interest. The appellant instituted proceedings under Section 34 of the Arbitration and Conciliation Act, 1996 (for brevity, the Act ). That proceeding bearing A.P. No.213 of 2006 was finally decided by a learned Single Judge of the High Court of Calcutta on 04.01.2013. The objections of the appellant were allowed in part in respect of only three counts relating to over-run charges, crane hire charges and interest. 3. The respondent file .....

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..... e very reason, taking a holistic view of the whole matter, the Division Bench in the impugned order took the same view. On behalf of respondent, the grant of pre-Award interest could not be successfully defended in view of clause 1.15.5 of the Agreement which provides that no interest shall be payable by BHEL on earnest money/security deposit or any money due to the contractor by BHEL . The ambit and scope of aforesaid clause was subject matter in Civil Appeal No.7423 of 2005 between the appellant and M/s. Globe HI-Fabs Ltd. decided on 12.11.2009 wherein this Court accepted and held that in view of such a provision in the Agreement, interest is only payable from the date of the Award. The aforesaid legal position ought to have been accepte .....

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..... fied below), measuring instruments, handling equipments as per provision of contract for timely completion of the total job as per contract within the accepted rates. 12.2 Following T Ps will be provided by BHEL to you free of charge as per provision of contract on availability. Sl. Description Capacity Quantity 01. Electric winches 10 MT 2 nos. 02. 10 Sheave pulley block 100 MT 4 nos. 03. Hydro test pump 1 no. 04. High Capacity crane (250 T)* 1 no. 12.2.1 The above T Ps will be made available for the project. You may make use o .....

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..... the Tools and Plants which will be provided by BHEL to the respondent free of charge as per provisions of contract on availability but only upto drum lifting of Unit II as specified in clause 12.2.2. There is no provision either in the Work Order or in the Agreement/Tender Document to entitle the respondent to claim that it was not obliged to pay the higher charges as fixed, subject to the conditions laid down by BHEL from time to time in respect of user of crane for Unit No.III. To the contrary, the extracts from the Tender Document contain a clear stipulation for recovery of such charges from the contractor s bill/security deposit in one instalment. 9. On going through the order under appeal, we find that the learned Division Bench h .....

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