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M/s. Kaikara Construction Company Vs. State of Kerala [01/07/14]

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[Civil Appeal Nos. of 2014 arising out of SLP(C) Nos.14947-14948 of 2011]. These appeals are directed against order dated 19.07.2010 passed by the High Court of Kerala at Ernakulam in Arbitration Request No.39 of 2009. By the impugned order, the appellant's prayer under Section 11 (6) of the Arbitration and Conciliation Act, 1996 for appointment of arbitrator has been rejected by the High Court. The factual matrix of the case is as follows: On 27.1.2005, the appellant submitted tender, which was accepted by the respondents on 21.7.2005. The possession of the work site was handed over to the appellant on 2.9.2005. The period for completion of the contract expired on 1.9.2007. The case of the appellant is that the Company had completed a major part of the work. This was disputed by the respondents. According to them, only 41% of the work was completed as on 22.12.2007, based on the original contract price. Based on the revised contract price, the progress achieved was only 30% as on 22.12.2007; the work carried out from 22.12.2007 to 1.3.2009 was only 12% as against 70% target. According to the appellant, a sum of Rs.1,18,87,265/- was payable to it but the said amount was withheld by the respondents. As a condition for releasing the amount, the appellant was compelled to execute a supplemental agreement.

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