Losing Party cannot seek an Order under Section 34 of Arbitration Act

Tecnimont Private Limited & Anr. Vs ONGC Petro Additions Limited (Delhi High Court)

FACTS 

The Petitioners and the Respondents entered into two contracts dated 2^nd September, 2011 wherein the Petitioners were allotted the work of construction, development and successfully commissioning of a Polyethylene Unit (“PE Unit”) and the Polypropylene Unit (“PP Unit”).

The term of the contracts was 28 months for execution and the Petitioners were under an obligation to produce bank guarantees as under Clause 3.3 and 3.8 of the General Conditions of Contract (“GCC”) of the said contracts. Out of the five bank guarantees, two were advanced bank guarantees to secure mobilization of advance paid by the Respondent and three were performance bank guarantees for execution and performance of the contracts.

The scheduled date of completion of commissioning of both the Units as per the contracts was on or before 2^nd October, 2013. But in fact, the two units were commissioned on 14^th April, 2017 and 12^th February, 2017 respectively.  The Petitioners issued arbitration notices in lieu of disputes arising between the parties after attaining the commissioning certificates for the Units.

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