Can Set Aside Domestic Award, If Irrational And Perverse: SC

Patel Engineering Ltd. Vs North Eastern Electric Power Corporation Ltd. (“NEEPCO”) (Supreme Court)

FACTS

The Respondent had acquired 710 hectares of land for setting up Kameng Hydro Electric Project. For the same, the Respondent invited Bids for civil work of the project under 3 Packages.

“(i) Package-I: Contract for civil works for Bichom Dam, River Diversion, Bichom Intake and Head Race Tunnel from RD 0 m to 4400m (+/- 500m) on either side (i.e. 1^st half of the Bichom-Tenga Portion). (ii) Package-II: Contract for civil works for Bichom Dam, River Diversion, Bichom Intake and Head Race Tunnel from RD 4400 m to 11600m (+/- 500m) on either side (i.e. 2nd half of the Bichom-Tenga Portion and 1^st half of Tenga-Kimi portion). (iii) Package-III: Contract for civil works for Head Race Tunnel from RD 11600m (+/- 500m) up to surge shaft (i.e. 2^nd half of Tenga-Kimi portion), surge shaft, Pressure Tunnels, Power House and Tail Race Tunnel.”

On 03.12.2004, the Respondent accepted the bids of the Appellant and a Letter of Intent was issued. The Contract amounts decided were as follows:

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