Court Orders Arbitration in Complex Construction Dispute.
22 July 2024
Arbitration Law >> Business & Commercial Law | Contract Enforcement >> Business & Commercial Law
The case centred around a work order between RBCL Piletech Infra (petitioner) and Bholasingh Jaiprakash Construction Ltd (BJCL) for a project on a National Thermal Power Corporation (NTPC) site. Bharat Heavy Electrical Ltd (BHEL) was also involved as the main contractor.
The petitioner claimed damages and sought arbitration under Section 11(6) of the Arbitration and Conciliation Act, 1996. A key issue was whether NTPC and BHEL should be included in the arbitration proceedings. The court ruled in favor of including BHEL due to its role in payment releases to the petitioner. However, NTPC's involvement was deemed insufficient at this stage.
The court appointed Mr. Anant V. Palli as the arbitrator. Importantly, the decision did not delve into the merits of the dispute, focusing solely on the arbitration process and the inclusion of parties. The final decision on including NTPC and BHEL will rest with the arbitrator. The case highlights the complexities of construction disputes and the role of arbitration in resolving them.
Arbitration and Conciliation Act, 1996