Gammon India Ltd. & Anr. Vs National Highways Authority of India (Delhi High Court)
FACTS
The present application was filed under Section 34 of the Arbitration and Conciliation Act, 1996 (“the Act”) to challenge the Arbitral Award which was rendered by the 2nd Arbitral Tribunal. The Parties had invoked arbitration thrice, raising various claims before three different Arbitral Tribunals which have rendered three separate final Arbitral Awards.
The Appellant i.e. Gammon – Atlanta JV entered into a contract with (“Contractor”) the National Highways Authority of India (“NHAI”) on 23rd December, 2000 for the work of widening to 4/6 lanes and strengthening of existing 2 lane carriageway in the State of Orissa. The said contract commenced on 15th January, 2001 which was to be executed within 36 months i.e. 14th January, 2004.
The project was not executed within the prescribed time and extension was granted till 31st December, 2006. Vehicular traffic was allowed on the main carriageway in March, 2007 and according to the Contractor, the same amounted to deemed ‘taking over’ of the carriageway by NHAI and therefore, the contract was completed.
First Award dated 5th October, 2007
During the course of the contract, a dispute arose with respect of compensation of loss and profits, reduced productivity and revision of rates under the Price Escalation Agreement. The Contractor invoked the arbitration clause on 27th January, 2005 in pursuance to which the Disputes Review Board was constituted. The Claims in question are as under:
