{"id":34076,"date":"2009-10-14T00:00:00","date_gmt":"2009-10-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/dolomite-berhad-vs-national-highways-authority-of-on-14-october-2009"},"modified":"2016-04-19T10:10:26","modified_gmt":"2016-04-19T04:40:26","slug":"dolomite-berhad-vs-national-highways-authority-of-on-14-october-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/dolomite-berhad-vs-national-highways-authority-of-on-14-october-2009","title":{"rendered":"Dolomite Berhad vs National Highways Authority Of &#8230; on 14 October, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Karnataka High Court<\/div>\n<div class=\"doc_title\">Dolomite Berhad vs National Highways Authority Of &#8230; on 14 October, 2009<\/div>\n<div class=\"doc_author\">Author: Anand Byrareddy<\/div>\n<pre>TEE HIGH COURT OF KARNATAKA AT BANGALORE\n\nDATED THIS THE 14\"' DAY OF OCT0BE'}}:~~2(1Qi9__\"__t:If \" \n\nBEFORE:\n\nTHE I-ION'BLE MR. JUSTICE s\u00a7.NAN[\u00a7f'vI34'15I3iI4\u00a7R-1\u20ac'Dl3f .;_I\n\nWRIT PETITION No.2'5V778. OEI2nO5(GIM;tREs)t  :1\nC\/W WRIT PETITION No;:~I.7_os OF 200sIGM--nEs)\n\nWRIT PETITION No.2577s oI?II2Q()5\u00a3(;WI-IRES)'  \nBETWEEN:    I I I I\n\nDoiomite Berh\ufb01d,  _. .,       \n\nNo.3, JalaniSBC'*--2V,\"\"\"\u00b0--.__         \n\nTarnan S_rI.BatII\"'Ca,.YEs, 3   A  \n\n68 1.00,: 'IISelang.oI\u00a2 _Da*f'\u00a7IVi   I  I\n\nMalaysia, -. ' .   ' ~\n\nThrough\u00bbThe Pi'CjCC'I__IVIaI}?},g6lf..~\"  PETITIONER\n\n(By  Vonugopak, Senior Counsel and\n\n , '_ Sh;'\u00ab\u00bb;'..?{\u00a7.S'hasVhikiran .ShOtty, Advocate)\n\nE} V  Nati'Onj_a1aI'HighWays Authority of India,\n (Mini\ufb01ry of Road, Transport and Highways,\n\n'Government of India)\n\nA. ,  PI\"()ject Implementation Unit KPIU)\n\n._  Near J.}Vi.I.T., NR4 (Km 201),\n\n'A Chitradurga -577 502,\n\nKamataka,\n\n8\n\n\n\nl\\3\n\nThrough its Chairman.\n\nThe Louis Berger Group, INC.\n\nSree Lakshmi Venkateshwara Nilaya,\nVidya Nagar Extension,\nChitradu1'ga~577 502,\n\nKarnataka,\n\nThrough the Engineeit\n\nA.L.Sudershan Construction (fornpany Lirnii1e:d,~  it \n\n7-~3-~719, Rashtrapathi Road,   \nSecundarabad--500 O03,   3\nThrough its Managing Di1'ector\".'-i  \n\nStandard Chartered Bank, *  K  \nRaheja Tower, 6%' Floor,  C\n26, M.G.Road, V  \nBangalore-560 003*.-_  _ \n\nStandared C red   V  V\nG_rindEays\u00b0Centre,   ~\n}.9',\u00abRajaji S,a'Iaij,*._   \nCheiinai~600 001.. \" \n\n.  'i\ufb01taizdared Chartered Bank,\n._   Connaught Circus,\n3    10 00].\n\n.* _   Stir;-iierne Infrastructure Limited\n and MBL Infrastructure L\u00a3_m_i:ed,\n\nRegistered Office at No.8,\nBhavani, Service Industrial Estate,\n\nit a in Powal, Mumbai-400 076.\n\nSite office Taralabalu Nagar,\nNea1'J.M.I.T. College,\n\nE\n\n\n\nBehind NHAI Office,\nChitradurga--577 502.  RESPONDENTS\n\n(By Shriifdaya Holla Senior Counsel, ,\n\nSmt.Shi1pa Shah, Singahria and Partners for \n\nShri.C.M.\\\/eeeranna for Respondent 2,\n\nM\/s.Rangai-aju and Prabhakaran for\" 'p   nu\n\nShri.G.Krishna.murty for Resptindentlf)  A j;\n\n&gt;i&lt; =%il'(i\"V227 of if\n\nthe Constitution of India, p1'ayin.g.. tov.de't:.lare tf1'a--t.._tAhe;3action of\nthe respondents trying to_i\u20ac':ncas;h thee\"BVa.nk~-guarantees refereed\nto in paragraph 6 above as f1-aud_u'ie}nt, hi_ghiy_arbitrary, iilegal\nand without authority of'1awv:and etc;  \"  ., \n\nWRIT PET'\u00a5'f1{jN.ii\\fCi.5:76c}\u00abbi?.2{i0i?(_\u00a7.M\u00bbRES)\naETw,aah \" ~ 3'1,  if  A\nDoiornite' Be'1'had,x._ii\"  ~_ 9\" 1\n\nNo.3, Ja1ani:'},BC 2,    \nTaman\"Sifi.Batuflavies, '\n\n V'   Selangor D\ufb02aru-1--\u00abEhsan,\n .Ma.1ays_ia,_ \n ,__.TEir.ough\"\u00abT\u00a5jhe\u00b0Proj,ect Manager.  PETYTIONER\n\n(13iy--.__iSh1'.i:i\\ti..;}irishnan Venugopai, Senior Counsel and\n\n Shri.1{.Si'hashikiran Shetty, Advocate)\n\nif is.1si~AVNn.;\n\ni  National Highways Authority of India,\n\n(Ministry of Road, Transport and Highways,\n\n3\n\n\n\nGovernment of India)\n\nProject Implementation Unit t PIU)\n\nNear J.M.I.T., NPL4 (Km 20} ),\nChitradurga -577 502,\n\nKatnataka,\n\nThrough its Chairman.\n\nThe Louis Berger Group, INC'.  _ .\nSree Lakshmi Venkateshwar;-1 i\\Iilaya.,_\nVidya Nagar Extension,   \nChitradu1'ga--577 502, 'V\n\nKarnataka, __\n\nThrough the Engineei:,_\n\nA.L.Sudersha_n Const1f_u'ction__(Torn}:)-anyL..Li tnited,\n7~3~7_i9, Rasht._tapathi Road,_  '  '\nSecundar\u00e91ba\u00a7?3~\u00bbt5CQ     \nThrough VN\u00a7af:aging\u00ab._D'ireCt_m*'._:  '\n\nStandard. Bank, _ \nRaheja' Towe 1}; ._6\"' ieeohr; -. '\n26,\"M.G.Roa_d;  V.  \nBan gLae\u00a7.ote&lt;5 60. 00  \n\n &#039;Standatd Chartered&#039; Bank,\n. _  Gtind1aysCentte,\n &quot; ~VtA9t,\u00a21za_;ajtsaa1at,\n Ch&#039;en1tai--60wO&#039; 001.\n\ni&#039;.&quot;&quot;Staf1:(.fa1&#039;ti Chartered Bank,\n\nH-\u00ab.2,&#039;3~Connaught Circus,\n\n* ~t._New Delhi-1 to 001.\n\nL&#039; HM\/s.Supreme Infrastructure Limited\n\nand MBL Infrastructure Limited,\n\nS\n\n\n\nRegistered Office at No.8,\nBhavani, Service Industrial Estate,\nHT Powal, Mumbai-~40O 076.\n\nSite office Taralabalu Nagar,\n\nNear }.lVl.IT. College,\n\nBehind NHAI Office,\n\nChiti&#039;adurga--577 502.    \n\n(By Shri.Udaya Holia Senior Counsclilg  if\n\nSmt.Shilpa Shah, Singahria a&#039;nd\u00ab-.._Partn&#039;erllfnr iiesjondent ll, \n\nShri.C.M.Veee.ranna for Respondenf\ufb02,   \nM\/s.Rangaraju and P1&#039;\u00a3&#039;xl_)h.Etl&lt;2l1&quot;&#039;\u00e91y1_&#039;l.._il&quot;&#039;0,_l&quot;&#039; &#039;V.l\u00a7espondevntsVAvf-4 to 6\nShri.G.Krishnamurty for R&#039;e.sponden{ 7)._ _ L&#039; &#039; .. y.\n\nThis Writ Petition isfiled unrler A&#039;rtic&quot;l--es 226 and 227 of\nthe Constitution of lndiagg praying..to*~.quas&#039;h&#039;the communication\ndated 10.3.2036 issued&#039;. by the j--plroj&#039;e&#039;c&#039;tl director of the\nrespondent.l=:&#039;lnatioiial, hi&#039;g._l_jiway.sV&#039;:Ay.authority of India and\/or\ndeclare that t&#039;hCll&quot;&#039;lri:yjocatioVnby .respdndent that of the Bank\nGiiaranteesl&quot;rnentioneii&quot;&#039;in&#039;pai*agraphWl above and the action of\nthe Res1i2,ondent.,4&quot;to&#039;=-6;&#039;standard &#039;chartered bank in releasing the\namounts under tlie_said_ b&#039;an:k~.g&quot;ua1&#039;a1:1tees in fraudulent, highly\narbitrary, illegal&#039; and&#039;..\/orylfwithoiit authority of law Vide\nAnnexure--A aI7&#039;tCi_6[&#039;C:,&#039;l&#039; l \n\n.V  _  These &quot;petitionslllllhaving been heard and reserved on\nV__6.8.2909.and:&#039;c.orn.ing on for pronouncement of orders this day,\n\nthe Court-.de1Vi_v&#039;elijed&#039; the fol_lowing:--\n\n5\n\n\n\nORDER\n<\/pre>\n<p>Heard the counsel for the parties.\n<\/p>\n<p>2. These petitions are disposed of by this c0mm&#8217;on.&#8217;__ordei* <\/p>\n<p>as the parties are common and are given the  in&#8221;\n<\/p>\n<p>both the petitions and the reliefs ci:\u00a3iAmed..arfe in &#8216;i&#8217;espeC&#8217;t&#8217;ofithe.i<\/p>\n<p>same subject matter.\n<\/p>\n<p>3. The facts ofthe case are___a&#8221;s-foilows:i&#8221; ~ it I<br \/>\nThe petitioner, M\/s&#8217;;Diol0inite&#8217; is, a subsidiary of a<\/p>\n<p>public  third respondent, M\/s. &#8216;<\/p>\n<p>A L Sudershan Cons:t1&#8217;iiiC&#8217;tioiii&#8221;Company Limited, Secunderabad<\/p>\n<p>is a govrnpariiy  under the Companies Act, I956.<\/p>\n<p> Authority of India, respondent No.1<\/p>\n<p>it'(hereina&#8217;f*ie&#8217;r,,i_e\ufb01ier1&#8243;ed to as &#8220;NHAI&#8221; for brevity) had invited bids<\/p>\n<p>V .V by notiification dated 31.5.2001 for the rehabilitation and<\/p>\n<p>  of Chitradurga Section of the Western Traiiisport<\/p>\n<p>  Tumkur&#8211;Haveri NH-4 (National Highway No.4)<\/p>\n<p>\u00e9<\/p>\n<p>Project from 1&lt;.rn.189 to k.n&#039;i.2()&#039;.? &#8212; Package No.WTC 3<\/p>\n<p>(hereinafter referred to as the &quot;Project&quot; for brevity).<\/p>\n<p>The petitioner and the third respondent had entered a<\/p>\n<p>joint Venture agreement dated 5.7.200}, agree_iri.g <\/p>\n<p>profits equally, and had subm_i.tted theirbid   ii<\/p>\n<p>invitation as on 22.12.2001. The  <\/p>\n<p>been accepted an ag1&#039;eement&#039;&#8211;v.tw&#039;as e)iecuted_&#039;*_between1V the V<\/p>\n<p>petitioner and respondent   Theiconsideration<br \/>\nwas Rs.87.24 crore. The arider the project<\/p>\n<p>was    be11ic&#039;i&#039;:inmenced on 1.3.2002 and<\/p>\n<p>completieduibyi  months). The petitioner had<\/p>\n<p>furnished se&quot;ve.rai~ban1&lt; guarantees, in respect of various<\/p>\n<p>1&#039;&quot;cont&#039;ingencies~__fo1&#039; the due performance of contract, valued at<\/p>\n<p>&quot;&#039;ov&#039;e&#039;1_f  with the execution of the agreement and<\/p>\n<p>release ofim&lt;&#039;\u00a7bi1ization advances. Within two months from the<\/p>\n<p> up=,cot.n.:neacernent of work a dispute broke out between the<\/p>\n<p>&#8211;   namely, the originai design of the Project was for 4<\/p>\n<p>57&gt;<\/p>\n<p>laning the highway at a particular point where there was a<br \/>\nhillock. The excavation provided under the contract as per the<br \/>\nBil} of Quantities (BOQ) was 38000 cu.m under ordinary rock<\/p>\n<p>and 3800 cum. under hard rock. This was sought to <\/p>\n<p>by NHAI under communications dated i5.5.?.002  .<\/p>\n<p>which required the petitioner to change theiideisign. ifroirri  <\/p>\n<p>laning to 6 laning, in the particular l1i&#8217;i1oC:i_\u00a7areaii'(c&#8217;h.<\/p>\n<p>ch 195.050); to provide. ser&#8217;viceV1&#8217;o_ad~sp of  metres&#8217; &#8220;instead &#8216;V<\/p>\n<p>of 4 metres; and the side.\u00bbsiopes.iw&#8217;c*&#8211;1&#8217;r%\u00a7&#8217;&#8211;req:1ired to&#8221;&#8216;ue~tiattened,<\/p>\n<p>re uirin \ufb01attenin ahillock bi&#8217; hardrockieiteaivation.<br \/>\nq 3 3 Y .\n<\/p>\n<p>In7.c_respp&#8217;onseVii&#8217;orthiisp,'&#8221;the'&#8221;peti&#8217;tione1&#8242; proposed various rates<\/p>\n<p>for the addit.i_o3aa1 Vw.oi*ks,&#8221;  communications dated 3.6.2002<\/p>\n<p> and Ho&#8217;vve.V_e.r,&#8217; it is the petitioner&#8217;s case that it had<\/p>\n<p>V&#8217;&#8211;,co.ntii1ued._Vito&#8217;-eiiecute the work on the assurances of the<\/p>\n<p>rep1&#8217;e.seintativ&#8217;es_  N HA1 and M\/s.Louis Berger Group Inc. (The<\/p>\n<p> .  *.E,nginee&#8221;rs appointed as Supervision Consultants, in terms of the<\/p>\n<p>it  pV.&#8217;aigI&#8217;e.eri1ent) respondent NO.2 hereinabove, that the enhanced<\/p>\n<p>  rates would be mutuaily agreed to in due course.<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p><span class=\"hidden_text\">9<\/span><br \/>\nIt was on 8.11.2002 that the second respondent issued a<br \/>\nvariation order No.3\/00}. This was issued in terms of Ciause<br \/>\n51 of the agreement and is a formal expression of the additional<\/p>\n<p>works and according to the petitioner, is used for pL1ifposes?.of<\/p>\n<p>making interim payments to the petitioner. &#8216;Fhe_-&#8216;petiiitiiohier  ~<\/p>\n<p>said to have Compieted the addit%onav1.._worksHii&#8217;nei\u00a7idii1gi_&#8217;_=the._V <\/p>\n<p>excavation of 400000 cubic metres ofrocifiiat anaddi.tit;na1:coist*._<\/p>\n<p>of Rs.20 crore. It is stated tvha&#8217;t..t&gt;the &#8220;es_tirnatej:I rock it<\/p>\n<p>excavation in terms of the.v_Bii1.~eiot&#8217; &#8216;Qiuantit.ies was&#8221;&#8216;3&#8217;800 cum.<br \/>\nwhereas the hard rock excaVatec?1&#8243;t&gt;_t;\/0  biasting aione<\/p>\n<p>was 2697 petit%oner&#8217;s case that during the<\/p>\n<p>period JL1n'&lt;&#039;:s.__2O02x0&#039; 2004, without the issue of<\/p>\n<p> &#039;_ enhvaricedii&#039;t&#039;ates he&#039;ing___se.ttIed, the entire working capital of the<\/p>\n<p> petitioneuwast iiblocked in the excavation work. To add to its<\/p>\n<p>woes} the petitioner&#039;s joint venture partner who was required to<\/p>\n<p>iyinvest 50% of the working capital pleaded inability on account<\/p>\n<p>i&quot;o\u00a7.1_ac}:; of funds and a dispute having arisen between them, the<\/p>\n<p> .._Vrnatter was in arbitration proceedings. It was, therefore,<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p>1 (3<\/p>\n<p>imperative for the petitioner that respondent No.1 released<br \/>\nfunds on the basis of the enhanced rates.\n<\/p>\n<p>The second respondent had issued a variation orderi\u00bb3{\/ClQ8<\/p>\n<p>fixing a rate of Rs.180 per cum. for the excavationioif &#8216;orfdinar*-}?__ .<\/p>\n<p>rock. As the petitioner had claimed. an e&#8211;nhia&#8221;ne:ed ii&#8221;ate..Vo&#8217;f_ <\/p>\n<p>Rs.583.36 per cu.m., the petitioner:&#8217;acc:eptedlithe&#8217; ,ra&#8217;ter <\/p>\n<p>protest while pointing out Vth.ata_ethe h&#8221;e.2;cayat&#8217;ion~-iViireqdired i&#8217;<\/p>\n<p>controlled blasting as the shard rock  VVprimarily&#8221;iigneous rock<br \/>\nand requested fixing a higher.irate&#8217;.v&#8217;E&#8217;l3ut.,__thefse(;Ond respondent<\/p>\n<p>withdrew Vazfiatio&#8217;-n_:Order 31008 u\u00abnde-if&#8217;&#8211;the_:dictates of the first<\/p>\n<p>respondent and on i&#8217;ts9.arguinevnt that the price for excavation of<br \/>\noi&#8217;dinaryi&#8217;and\u00ab.hard. vrock._iNaisVi&#8221;p.r&lt;:;-vidcd in the Bill of Quantities.<br \/>\nThe same 2 -not constitute 2% of the contract price.<\/p>\n<p>&#039;\u00a5&quot;hereifore;~ under 52.2 of the Contract Conditions of<\/p>\n<p>V. i&#039;Partict;.lai5&#039;iApplicationmihereinafter referred to as &quot;CCPA&quot;, for<\/p>\n<p> i_)reViit&#039;yT) :the.p.eti.tioner was not entitled for an enhanced rate.<\/p>\n<p> &quot;&quot;Thepieit_itioner immediately raised a dispute and sought<\/p>\n<p>-V :&#8217;eferei1ce&#8217;;i,Qf&#8221; this claim for enhanced rates for the additional<\/p>\n<p>\u00a7<\/p>\n<p><span class=\"hidden_text\">11<\/span><br \/>\nworks, to the Disputes Adjudication Board (hereinafter referred<br \/>\nto as the &#8220;DAB&#8221;, for brevity) under Clause 67.} of the CCPA,<\/p>\n<p>as on 22.9.2004.\n<\/p>\n<p>The DAB on consideration of the rival cot&#8217;ater1t.i&#8217;ons<\/p>\n<p>concluded that the petitioner&#8217;s claim ought <\/p>\n<p>Considered at the earliest and the secondp reisponideint vhaving-.<\/p>\n<p>delayed the classification of the rock for_ over two&#8217; years \u00abarid<\/p>\n<p>having provided its report to th&#8217;e,p&#8217;etitionei&lt; vvas place.<br \/>\nBut rejected the petitionei-&#039;apclai_nimf&lt;51&#039;i-Ienhanced ravtesgivaccepting<\/p>\n<p>the NHAFS interpretation oftlfieticlaiises.ViVofl.ith.e.&#039;&#8211;~contract, by an<\/p>\n<p>order dated  *  A  <\/p>\n<p>By a&quot;il_ettar  the second respondent the<\/p>\n<p> SupVei*3visi_iig Consiultanti. Engineers. extended the time for<\/p>\n<p> cotiiijpiexioiiitwork to \u00a315.] 1.2015.\n<\/p>\n<p>A&#8217; &#8220;dHowe&#8217;\\re_1&#8243;i,t&#8221; the second respondent issued notices dated<\/p>\n<p>&#8220;~~v._&#8217;__V&#8217;-5.7.2OU&#8217;3.,&#8217;__land 19.8.2005 recommciiding termination of the<\/p>\n<p>A  p:.&#8221;pAetit_ioner&#8217;s contract, which prompted NHAI to bring relentless<\/p>\n<p> 2 pressure on the petitioner to take extreme measures to expedite<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p>the work or suffer the consequences. NHAI threatened to<br \/>\ninvoke bank guarantees as per letters dated 26.10.200\u00a7 and<\/p>\n<p>7.11.2005. There was no response to the petitione1&#8243;.\u00abs&#8221;request<\/p>\n<p>for extension of time. The petitioner contend-3:&#8221;tha.t_:&#8217;i&#8217;t-it V&#8217;<\/p>\n<p>ultimately informed after the officizsilsmof&#8217; <\/p>\n<p>contacted personaily, that a decisioniiw_ais&#8221;.takeni.o*nA18.1 <\/p>\n<p>not to extend any further time f&#8217;oir&#8221;~9o&#8217;1tnpietion_of&#8217;the contract. It<br \/>\nwas thereafter that the pe;ti&#8217;t-i_one_&#8217;ri haidt-he first iofthese writ<br \/>\npetitions seeking__ to res.tta&#8217;in.V  &#8216;terminating the<\/p>\n<p>contract and  _iiiV(&#8216;iE&lt;ii&#039;;r.gi  AV.biank&quot;&quot;&#039;gua1&#039;antees and for<br \/>\ncompen_sat1o&#039;n ii1&#039;ra:&#039;s-pAectio&#039;tfrthe additional works.<\/p>\n<p>On 1,2005*.i.ti:is&quot;_;~court had issued notice to the<\/p>\n<p> respondentspbut did.nQt.g2fant any interirn relief.<\/p>\n<p> &#8211;V.TAi\\&#8217;\u00a7iIAI'&lt;~r.e%at.ered appearance and filed its statement of<\/p>\n<p>objections.&#039;.ioi_1_i&#039;2t).1.2006 and denied that it had decided to<\/p>\n<p>V._terrninete&quot;:. the contract or to invoke the bank guarantees.<\/p>\n<p> by notice dated 10.3.2006 the petitioner&#039;s contract<\/p>\n<p>i  .i _._was terminated and the bank guarantees were encashed.<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p>It is contended that thereafter NHAI has awarded the<br \/>\nbalance works of the Project to :1 third&#8211;party, namely, the<\/p>\n<p>seventh respondent, for a consideration of Rs.lO3 crore,&#8221;-.._\u00a5t is<\/p>\n<p>the petitioner&#8217;s case that it had Completed 43% <\/p>\n<p>works. The value of the remaining was about,,Ris;4.9;7_i2~ crore.~i _ i&#8217;<\/p>\n<p>But NHAI having awarded the remainingin\/iorlt&#8217;atitheiexorbiitlapnti&#8217;<\/p>\n<p>sum as stated above seeks to hold thel&#8221;petit_ionetr&#8221;l&#8217;iable for the <\/p>\n<p>difference of the value of the rerii&#8217;ai..inin_g worksi_i(Rs.llE03 crore<br \/>\nless Rs.49.72 crore). It is on,t&#8217;i&#8211;3_is  development that the<br \/>\nsecond of the above_writ1petitio:ns.lis,tt7i.led;  2<\/p>\n<p> S-.&#8217;n&#8217;ri .Kris&#8217;l1nan_\u00bbVent:gop&#8217;al, Senior Advocate appearing<br \/>\nfor the c.o1.ins_el f()1&#8217;lthe&#8217;petit.i_lone1&#8242; contends as follows:<\/p>\n<p> &#8220;the.maintainability of the writ petition, in the<\/p>\n<p>  of&#8221;&#8216;a,n&#8221;a_rbi:tra.tion clause, under Clause 67 of the Agreement<\/p>\n<p>between _t,hedlVpai&#8221;ties, he would submit that a writ petition is<\/p>\n<p>V&#8217;-\u00bb.maintainable despite the existence of an arbitration clause as<\/p>\n<p> _whatif.&#8211;&#8216;is sought to be enforced is a fundamental right of the<\/p>\n<p> V. ..,.petitioner.\n<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p>In that, the petitioner seeks to question the interpretation<br \/>\nsought to be placed by NHAI on ciause. 52.2 of the contract.<br \/>\nThe same is patently unfair and arbitrary. Further, an Arbitral<\/p>\n<p>Tribunal is fettered by the terms 01&#8242; the contract. It wouid._be<\/p>\n<p>beyond its jurisdiction to adjudicate upon the.\u00a7i_:piet&#8217;itio&#8211;i1e;*-&#8216;.sf&#8217;.<\/p>\n<p>contention. The clause requires to _be..read dowirfto. render it <\/p>\n<p>reasonabie and fair and render justice tothe ip~etii&#8217;ti_oneir.-it&#8221;=-The<\/p>\n<p>contract being a standard forni a:o&#8217;n.1V_ract has a _pu&#8217;b1i&#8217;e.;&#8217;c&#8217;iiaracter, &#8221; V<\/p>\n<p>in so far as it is applied t()p.*.\u00a7i&#8217;)&#8221;11ti\u00a71.&#8221;.itii(&#8216;)&#8217;1&#8217;r.S_&#8217; engag&#8217;eld\u00ab&#8217;oy NHAI<br \/>\nthrough the length and it&gt;;:eaditiie:o&#8217;f  its acclaimed<\/p>\n<p>Golden; Q~uadi&#8217;i_later.al&#8217;t  &#8216; and therefore, is yet another<\/p>\n<p>circumstariceilwyhich iwoulyd_;e\u00bb:raake these proceedings the most<\/p>\n<p> a ire riate rem_ed*&lt;,,i__Hev laces reliance on several authorities in<br \/>\n    J &#8230;. ..\n<\/p>\n<p> V th is repg&#8217;ardi he.:e&#8221;u&#8211;nder:\n<\/p>\n<p>(.ciz)_.il!i&#8221;)iF.Q;i&#8217;iis:S{ii1Ih Khan&#8217; vs. Ram f~;g.znehi Sing\/1, (I971}3 SCC<\/p>\n<p>864,   <\/p>\n<p> AISL InIern.ari0n.czl I.im:&#8217;rea&#8217; i-us&#8217;. Export&#8217; Credit Guarantee<\/p>\n<p>C{)I'[){)f\u00a3ZTi()f1 Qflrzdia Limited, (2\u20ac)04)3 SCC 553<\/p>\n<p><span class=\"hidden_text\">8<\/span><\/p>\n<p>(c) Shri1ekl&#8217;i.(z Vz&#8217;c1yc1rr\/Ii (Kmm\ufb02 us&#8217;. State of UP. (1991)! SCC<br \/>\n<span class=\"hidden_text\">212<\/span>\n<\/p>\n<p>(d) LIC oflndicz vs. C onsumer Edmminrz and Researclz egztre,<\/p>\n<p>(1995)5 SCC 482<\/p>\n<p>(6) Urrar Pradesh State Bridge Cwzsrrucrzion C0%y?)rra:if}rz  <\/p>\n<p>B.D.\/\u00abL and Others, 2005(5) I&lt;ar.LJ 112- i_ <\/p>\n<p>Srimauli Builders vs. Ban (:1()r\u00a32 &quot;WaIer&#039;..&#039;;.\u00a7ii&quot;;i&#039;v &#039;.cii&#039;1d<br \/>\n, .3 ._ , P1&quot; \u00ab . .\n<\/p>\n<p>Sewerage Board and or\/&#8217;zers, (&#8216;6)KczriLiI\n<\/p>\n<p>(g) S\/1eIty&#8217;s Cor1_9truc&#8217;ti0i:i.&#8217;_:C.&lt;)rn;&#8211;ian;&#039;.i rishna Bhagya Jala<br \/>\nNigam Limited and c3tbe.!&lt;t,_  \u00a72_5;i2,f2(51a,\u00e9i;=; <\/p>\n<p>Ityis Contefid\u00e9dofth.at&quot;the&quot;&#8212;question to be addressed by this<\/p>\n<p>Court is iinrii.t_ed. in&#039; scopenaiid does not involve any disputed<\/p>\n<p>    &#8230;..\n<\/p>\n<p>V   &#8220;&#8216;It&#8217;isi&#8217;iiiotiiii-&#8216;dispute that the expansioii of the scope of<\/p>\n<p>wo1&#8217;]$ii11cre\u00a3iSegi&#8217;eEmost 30 times in the quantum of excavation of<\/p>\n<p>ii&#8221;\u00bb~&#8217;\u00ab\u00ab___i&#8217;~hard 1&#8217;o&#8217;CkV__ii111d by 5% times in the case of ordinary rock. Citing<\/p>\n<p> _i&#8217;the&#8211;j.u_:igment of the Supreme Court in S.Harcharan .vs. Uniorz<\/p>\n<p>  -sgfiilndia ((1990) 4 SCC 647), which was a case concerning a<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p><span class=\"hidden_text\">26<\/span><br \/>\nconstruction contract, involving additional work of excavating<br \/>\nhard r0ck~it was held that a contractor could not be held liable<\/p>\n<p>to execute the additional quantity of the tendered iternsat the<\/p>\n<p>tender rates to an unlimited extent and that it was perr_1fn&#8217;sls&#8217;ihl&#8217;elto<\/p>\n<p>read into the contract a deviation limit, 20% inll&#8221;t.hatfciase;  <\/p>\n<p>excess of which the contractor wwald  en\u00abtitl\u00a5ed.__torevisedllr<\/p>\n<p>I&#8217;Elt\u20acS .\n<\/p>\n<p>It is also found as a fact thatv:l\u00a7&#8217;\\&#8217;HAl  ifaiiledltg) indicate<\/p>\n<p>for over two years, the revised ratcsi.._w\u00bbhile assuring it of the<\/p>\n<p>same &#8212; only to fix the sanie_arbitra1&#8217;il\u00bby a&#8217;n_d&#8217;eiqua&#8217;ily arbitrarily to<\/p>\n<p>have wl&#8217;ithdr21w.1l1&#8243;the..3ame&#8221;oTn'&#8221;the &#8216;ground that the petitioner was<\/p>\n<p>not even entitled to.  It is the interpretation of clause<\/p>\n<p> &#8216;lofithe contr&#8217;Aactib.y. N HA1, in the face of the circumstances<\/p>\n<p> _ n&#8217;igh&#8217;ligh&#8217;t.ed requires to be addreased by this Court.<\/p>\n<p>&#8216;  It is &#8216;contended that Clause 52.12 of the General conditions<\/p>\n<p>Wof the ct)_nti&#8217;act reads as follows:\n<\/p>\n<p>52.2 Provided that if the nature or amount of<br \/>\nany varied work relative to the nature or amount of<\/p>\n<p>the whole of the works or to am&#8217; part thereof, is such<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p><span class=\"hidden_text\">17<\/span><\/p>\n<p>that, in the opinion of the Engineer . the rate or price<\/p>\n<p>contained in the contract for any item of the works ,<\/p>\n<p>is, by reason of such varied work, rendered<\/p>\n<p>inappropriate or lr121pp1iCabl&lt;:. then, after duet&quot;<\/p>\n<p>consultation by the Engineer with the Employe&amp;15..&#039;&lt;1_l:dh&#039;&#039;&#039;&#039;if. &#039;&#039;<\/p>\n<p>the Contractor, a suitable rate or price shall be.&#8211;agree;;l&quot; &#8211;  <\/p>\n<p>upon between the Engineer and lhyeAACbontra&lt;.;&#039;to&#039;r&#039;.&quot; <\/p>\n<p>event of disagreement the E1igineeii,,sh.al&#039;l.yy H<\/p>\n<p>other rate or price as is, in his op__ini&#039;on, app&#039;ropri&#039;ate<\/p>\n<p>and shall notify the C0nV[l&#039;E1,(\u00e9&#039;f\u20ac&#039;5~|Vf&#039; acco1&#039;t1__ingly, <\/p>\n<p>copy to the Employer. Unti_l&quot;&#039;:;.u_ch._Vtime,hasrates for<br \/>\nprices are agreed  fixed  , th_e._Engineer shall<br \/>\ndetermine the provisionalVrat&#039;es&#039;or  enable on-<\/p>\n<p>account payrnents t\u00a7ibeiinciudet1Vi&#039;i.n c-ert\u00a7t&#039;icate.s issued<\/p>\n<p>in accor&#039;dt:.i&#8211;1Vce yVith&#039;Cla&#039;.\u00a3l_S\u20ac&#8211;_6Q.<\/p>\n<p>&#039;&#8211;Provided&#039;:_i&#039;al_s&#039;o&#039; &#8211;.t_ha\u00bbt.41;~o varied work. instructed to<\/p>\n<p>be doneby the Ei1_gine~er pursuant to Clause 53 shall<\/p>\n<p> beiyztlueciliulntfer Snb&#8211;clause 52.1 or under this Subw<\/p>\n<p>&quot;unless within 14 days of the date of such<\/p>\n<p>V*in:s&#039;tr_uCtionhand, other than in the case of omitted<\/p>\n<p> wotl{,&#039;s:l\u00a7;ei9oi&#039;e the commencement of the varied work,<\/p>\n<p>tioticeshall have been given either:\n<\/p>\n<p>a) by the Contractor or to the Engineer of his<br \/>\nintention to claim extra payment or a varied<\/p>\n<p>rate or price, or<\/p>\n<p><span class=\"hidden_text\">5<\/span><\/p>\n<p>l9<\/p>\n<p>oi&#8217; the quantity set out in the Bill of Quantities<\/p>\n<p>by more than 25 per cent &lt;<br \/>\nFrom a reading of the second proviso it should be<\/p>\n<p>understood that it would include a claim to varied rate_s.ca~s_es<\/p>\n<p>where the additional work amounts to more than  <\/p>\n<p>contract price and not only in cases where_ the .iltern&quot;inljVthe&quot;Bill  ll<\/p>\n<p>Quantities as originally estimated is&#039;i.ess._than  -. To <\/p>\n<p>the argument of NHAI W()Ltlt:l&#039;-vll)lg:.t\u00a7&quot;..gt0 p.lac.e&#039;a._  all<\/p>\n<p>willful or even an inadver.tent .r1nde:%estii&quot;nation of&quot;t&#039;z1e scope of<br \/>\nwork being foisted on the eontifacror detriment. in the<\/p>\n<p>presentacase, therefisi  on record to indicate that the<\/p>\n<p>Detailed Project Regaort:s(&#039;heirei11after referred to  &#039;DPR&#039;, for<\/p>\n<p>  not finaiised before the invitation for bids in May<\/p>\n<p>  did not provide for the hugely expanded<\/p>\n<p>worl\u00e9 at thelhiiilllsection.\n<\/p>\n<p>lt,__is also contended that the petitioner had furnished a<\/p>\n<p>it =total..oi&#8217; seven bank guarantees during the performance of the<\/p>\n<p> &#8220;~~c&#8211;ontract. Of these, five bank guarantees were issued by<\/p>\n<p><span class=\"hidden_text\">5<\/span><\/p>\n<p>respondent No.5 \u00bb bank. These hank guarantees are in the<br \/>\nstandard format and were executed in favour of the chairman,<\/p>\n<p>NI-IAI and could be invoked by him alone. But h0we.&#8221;vei&#8217;:;:&lt;\u00ab.:vi\/&#039;ere<\/p>\n<p>invoked by an officer other than the Chairman  &#039;<\/p>\n<p>permissible. Reliance is placed oi:&#8212;ifi&#039;iz:-cfii.vti?zar1_yCa?ijisIm+:?&#039;iir)i:.<\/p>\n<p>C0.LId. vs. State 0fBih.ar. [(1999)    \u00bbre\u00abgaiid.*<\/p>\n<p>It is contended that more&#039;&quot;&#039;i\u00abrhpo.rtantiy.._itheisinvtocation of V<\/p>\n<p>the bank guarantees was\u00a2.1ea1&#039;iyiiani&#039;;:-CI iiittyriminaliicontempt of<br \/>\nthis Court. Elaboratihg f1_;:rt&#039;i~,e_;-,   e&#039;o.nite.hd_ed that this court<br \/>\nhad issued em{_.ei&#039;g\u00a7?;ntV ;i.oiticeoh  petit&#8211;io&#039;n. The respondent<br \/>\nhavihg7.a,e11te&#039;red&quot;iia\u00a7peaziai&#039;1ce&#039;&quot;-had&quot; smteti in its statement of<\/p>\n<p>objectionsiitiatediii2(i.&#039;.\u00a7.2\u20ac)iio, that it had no intention of<\/p>\n<p>-V V. &#8216;_ tern1i&#8217;natiii&#8217;1g the CiOI1t1f;1_(_.&#8217;,\u00a3vO:&#8217; invoking the bank guarantees.<\/p>\n<p>    matter was pending consideration by this<\/p>\n<p> th.e&#8217;ii&#8217;ii&#8217;i&#8221;_sti respondent has, by design, invoked the above<\/p>\n<p>igbank guaiitantees on 10.3.2006, a Friday, thereby ensuring that<\/p>\n<p>,,_&#8221;&#8216;_the_i\ufb01etitioner could not approach this Court till 13.3.2006.<\/p>\n<p>it  .. __I:ibwever, on 14.3.2006, when the mattei- was being considered<\/p>\n<p><span class=\"hidden_text\">2<\/span><\/p>\n<p>the said contract and to award the xame to the petitioner, who<br \/>\nundertakes to complete the same for a consideration-\u00abj(&gt;f:iRS:95<\/p>\n<p>CFOFG.\n<\/p>\n<p>5. On. the other hand, Shri Uti;;:y&#8217;a Hollaji  ii<\/p>\n<p>appearing for the counsel for theiKreS;i1ondent_&#8211;\u00bbi c&#8217;o\u00bb!1tend_S&#8217;&#8211;~taS&#8217;~_<\/p>\n<p>follows:\n<\/p>\n<p>N HA1 has been<br \/>\nAuthority of   it;&#8221;~~iiv\u00a7ureisiaonsible for the<br \/>\ndevelopment,&#8221;    of the National<br \/>\nHighwayra  hand is a part of the<br \/>\n an-ica the North&#8211;South and East-\n<\/p>\n<p>West Corri&#8217;dQ_i&#8217; Proijectg  Golden Quadrilateral Project aims<\/p>\n<p>  to Connect the fou&#8217;1*m.e.t.17opoIitan cit\u00e9trs, namely, Delhi, Calcutta,<\/p>\n<p> iiw.~&#8217;Iurn13_a&#8217;i..4ar:d &#8216;Cihe.11nai. The North~.&#8217;j\u00a7outh Corridor Project aims<\/p>\n<p>to&#8217; ,_connect&#8217;t:i1.:\u00a7\u20acashmir to K3..!1yElkii\u00a711E1i&#8217;i and the East-West<\/p>\n<p>V&#8217;-.CorridorV__i&#8217;Project connects Siichar and Porbander. In this<\/p>\n<p>&#8221; .re*rrarti, the existinv hi hwa  are to he a raded. A section of<br \/>\n. (:2 .. 2: 3<\/p>\n<p> \/,_H1h:e road connecting Mumbai and Chennai passes through<\/p>\n<p>\u00a3<\/p>\n<p><span class=\"hidden_text\">23<\/span><br \/>\nChitraduiga and work for one of the packages was entrusted to<br \/>\nthe petitioner.\n<\/p>\n<p>NHAI has engaged respondent No.2 as a Supervising<\/p>\n<p>Consultant Engineer to supervise the quality of the worhand<\/p>\n<p>the operation of the Contract as prescribed in Ciat_1se&#8221;2;6_~<\/p>\n<p>Contract and acts impa.rtia1I_y insofar  the ob&#8217;r1&#8217;gati.on&#8217;s.: of the <\/p>\n<p>petitioner and NHAI are concerned.\n<\/p>\n<p>It is contended that theii_ai&#8217;iegatio&#8217;i&#8217;i having = L&#8217;<\/p>\n<p>sought to change the design Sprf3\u20acii:iiiC\u00a31ti0i&#8217;i fro.r11=4..1aning to 6<\/p>\n<p>ianing in the year 2002 ini'[i&#8217;\u00a7&#8217;i}i&#8217;i&#8217;~i,\u00a7&#8217;E&#8217;\u00a73E3. eittc..V;\u00bb.iS\u00b0 denied as being a<\/p>\n<p>change&#8217;..cont&#8217;em_ip&#8217;iatedi&#8217;ifoi&#8221;i&#8217;-the first time. It is contended that<\/p>\n<p>even du1_~1n&#8217;g.the,. teridesfiiigfstzige, it was anticipated that rock<\/p>\n<p>  WO11i&#8217;:3. beencountere.d_..and accordingiy items for ordinary rock<\/p>\n<p> and har&#8221;ct.._ro.\ufb01:i]&lt;; were included in the Bit? of Quantities. However,<\/p>\n<p>itvvas a.1Sot&#039;i:&#8211;}es\u00a7&#8221;<br \/>\nFurther, the petitioitigr l1.:i&lt;:l&quot;e.i\u20ac Sub\u00a7Contractor to<br \/>\ncarry out the said work with&#039;oL_tt  ..l-V&#039;-1&#039;ior sanction of<\/p>\n<p>the second &#039;3&#039;espoin;l&#039;\u00a7:nAt&#039;wih&#039;ieVh&quot;&#039;i-s a cleai&#039; violation of the contract.<\/p>\n<p>It is also to&quot; noticed&#039;t.liat_:_t.ne petitloner had engaged the Sub\u00bb<\/p>\n<p>  Conizractor to exeeute.___t.he works at it rate much less than agreed<\/p>\n<p>  profiting trom the execution of the work<\/p>\n<p>andthe falsehclaim of having inctm-ed losses to the extent of<\/p>\n<p>&quot;-.Rs.2O (role and the impasse having: resulted in a &lt;:lischa1&#039;ge of<\/p>\n<p> its .obligation under the contract to ggierform etc., is false to the<\/p>\n<p>i  V. &#8230;l&lt;.riowleclge of the petitioner. The falsity of the claim of the<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p>petitioner is also evident from the tact that the petitioner has<br \/>\napproached the second respondent my a varied rate, E9 months<\/p>\n<p>after accepting the Variation Ordea: The Consultant Engiiieer<\/p>\n<p>had by oversight issued a Var&#8217;:-ation Order <\/p>\n<p>27.7.2004. But soon after realising the. e_rror,_7iiariaely.ltl1a_t.the_ K&#8221;<\/p>\n<p>Variation did not qualify for a vai&#8221;ied&#8217;=i&#8221;2ttei_i <\/p>\n<p>the particular item was less thttnt_VLilf2t&#8217;5&#8217;\u00a7?: of the covntract.i}5r&#8217;ice&#8217;i the &#8221;<\/p>\n<p>Variation order was withtli*ztw=ni..r&#8221;&#8216;A&#8211;.d&#8217;i&#8211;s;5tate haying been raised<br \/>\nby the petitioner before  a detailed<\/p>\n<p>deliberation,  stand as the<\/p>\n<p>petitionet&#8217; s2 diseiititlc  o&#8217;rde:r dated 24. 3.2005.<\/p>\n<p>It is lconiteynded that&#8217; initlie meanwhile, the rate of progress<\/p>\n<p> i_ of e&#8217;X3ecut_Li&#8217;on_ of the \u00abworlts, which had remained Very slow npto<\/p>\n<p> t;teter~i.orated further and all work had practically<\/p>\n<p>stophed vhylliiifaiceniber 2(.)(&#8216;)4. in =-;pit.e of review committee<\/p>\n<p>&#8220;~..meetin&#8217;gsV__7and other attempts to expedite the work, the total<\/p>\n<p>A&#8217; ptogtjess achieved over a period of eleven months from January<\/p>\n<p>\u00e9<\/p>\n<p><span class=\"hidden_text\">26<\/span><\/p>\n<p>to November 2005 was works of only R5387 lakh which was<br \/>\nwholly unsatisfactory.\n<\/p>\n<p>It is stated that the Consult-mat Engineer had therefore<\/p>\n<p>recommended termination of the contract. But N4HdA-Io_&#8217;iihas<\/p>\n<p>afforded time to the petitioner to maite further ei&#8217;forfs to .<\/p>\n<p>the required progress. The petitione2&#8217;_ha.v.ing rniiseralaly i&#8217;aa1\u00a2a to id id<\/p>\n<p>perform its part of the contiacu&#8221;NH_}=\\i( was_:&#8221;jiistifie_d\u00ab._:i&#8217;1i..<\/p>\n<p>terminating the contract. The\u00ab.._:ai.legation &#8216;t-hat: Vl\\l:}3I&#8217;}Xl has &#8216;V<\/p>\n<p>fraudulently invoked i3E1El}\u20ac_gL1\u00a3ii?alllt(&#8216;c3:S&#8217; ahd. that the same were<br \/>\nacts which amount to criiuilnai i&#8217;coi:iem.oticourt is strongly<\/p>\n<p>refutedviand it &#8212;deinm:sti&#8217;ated that this Court had<\/p>\n<p>not thoughti..i_t fit to ;g:f;&#8217;1&#8217;iit.::\u00a5&#8217;iiiy* interim order of stay of such<\/p>\n<p>  invocation in thefii*::t&#8230;i.:ista11ce. N}&#8211;EA} has hence proceeded to<\/p>\n<p>&#8216;yiiievoke &#8216;t&#8217;he&#8221;s,arrie&#8221;&#8211;after due notice. The bank guarantees were<\/p>\n<p>unconditio.ii&#8217;ai-.V_ahd hence NH.-&#8216;\u00bb\\l&#8217; was within its right to invoke<\/p>\n<p>Wthe sariaef There is no giouiitl lTii:e:.,iC out to demoiis\ufb01ate that<\/p>\n<p>  has Committed contempt of C&#8217;oui*t.\n<\/p>\n<p>Z<\/p>\n<p>Shri Holla Places reliance on :1 large number of<br \/>\nauthorities to support the contention\u00bb: tliat the writ petition is not<br \/>\nmaintainabie hzwiiig regard to the mntractual relationship and<\/p>\n<p>the dispute pertaining to the terms of contract.<\/p>\n<p>In the above background, the circumstance: V&#8217;<\/p>\n<p>has terminated the contract with the pe&#8217;titi~oner7_4is   dispiztef<\/p>\n<p>If it is alleged that the terrninzition \\&gt;.&#8217;z1is\u00ab._iE&#8217;le_gial andsnot. j1:1stifiedi,i&#8217;~.<\/p>\n<p>the remedy in respect of such i1i*1&#8217;il;ire1&#8243;2il teirr:_ir1&#8217;at.i&#8217;on\u00b0is to seek<br \/>\ndamages.\n<\/p>\n<p>6. The Senior Advoe&#8217;:.ite  K3t&#8217;iSVll&#8217;13i1t1.. Venugopai does<\/p>\n<p>not disputerthatVthe:&#8221;corr:i&#8217;\u00e9iet__pit&lt;)Vides for settlement of disputes<\/p>\n<p>by t-ecourse_4_ito, 2irbitratio_i?;&#039;. tit&#039;t(;lL-IE&#039; the provisions of the<\/p>\n<p> ginci Conei..l.iati&lt;)n Act, 2996. Therefore, the oniy<\/p>\n<p> iground 0ni&#039;Wif1vi\u00a7;li&#039;*.th6 present petition is sought to be sustained<\/p>\n<p>ar1d,__the iiinitetliilqiiestirin that may be relevant is whether the<\/p>\n<p> -v.__i&#8217;-terior (if_C&#8217;iause 52.2 of the General Conditions of Contract<\/p>\n<p> e:i&#8217;so&#8217;ui_dAii.&#8211;ibe addressed by this COLIFL as it is the case of the<\/p>\n<p> vi..peititione1* that the interpretation smigiit to be pieced on the<\/p>\n<p><span class=\"hidden_text\">3<\/span><\/p>\n<p>same by NH\/Xi and duly (3E1(l()E&#8217;S\u20act&#8217;i by the DAB and a plain<br \/>\nreading of the same wouid not enabie the Arbitral Tribunal, that<\/p>\n<p>may be called upon to adjtitiieate any claim, to go beyond the<\/p>\n<p>letter of the clause. .It is hence sotagght to be etintenderliltaijvinig<\/p>\n<p>regard to the circumstance that the second prov&#8217;i&#8217;so to-.Clat1se_f <\/p>\n<p>52.2 above, ought to be understood to inelt1:3.ez_a &lt;:&#039;iai_r&quot;ri&#8211;_to_Wa&#039;rds&quot;\u00ab<\/p>\n<p>Varied rates in cases where aiiiy a:idit&#8211;ion*al worl{.s.Aa&#039;ni&#039;oL1nt to <\/p>\n<p>more than 2% of the ctintraez prixtit:-:_&#039;f::::1tl not&#039;-t.oi&quot;be&#039;: restricted to<br \/>\ncases where the Bill of Q-1,1ahtiti&#8211;\u00a5:s  Vios&lt;is__g;i,:ially estimated is less<\/p>\n<p>than 2% of the contract pr-ice.::m(i.-isr11essVthis[.Court in exercise<\/p>\n<p>of its power&#039; of,_;u&#039;d.s_c-131~;:\u00a2vi_g.w ..reads down the above clause, any<br \/>\nCiairn raised in arbitration wfhaslti be an exercise in futility.<\/p>\n<p> the ft1&#039;rt.ht_3__i_&#039;___ease oi&#039; the petitioner that a Detailed<\/p>\n<p> P.rojer.:t &#039;R_eport.fWhich is geiieraiiy the basis to arrive at the Bill<\/p>\n<p>0i&quot;Qnantitiesi._a;nd more pzai&quot;t.iet1lai&#039;ly in quantifying the rock<\/p>\n<p>H,excava&#039;tiVoin and the classification thereof in the present case, had<\/p>\n<p> finalised before the %n\\&#8211;&#039;it;stion for bids in May 2001<\/p>\n<p> .. warid hence, it is contended that the Bill of Quantities did not<\/p>\n<p>%<\/p>\n<p>2:}<br \/>\nprovide for the hugely exp:-indcd w:&#8217;k at the hill section, which,<\/p>\n<p>of course, is denied by NHAI.\n<\/p>\n<p>It foilows that in pi&#8217;c&#8217;&gt;eeeLiin;_f to address the tenor of<\/p>\n<p>Clause 52.2 a disputed question of fact as to whether the<\/p>\n<p>contract proceeded on  mixz&#8221;::pre:sem:.1tion of fact ar}d_tl1eli&#8217;efore&#8221;,V.<\/p>\n<p>the above clause could not be S{I&#8217;lC{l applied todeny the ;:1aimg i<\/p>\n<p>of the petitioner, requires adjLidicaiitirint he <\/p>\n<p>bound by an arbitration cEaL1se,,t&#8217;lie_ dictun_i or the,Supre_me eotilt <\/p>\n<p>in the case of ABL Intc\u00e9rncitt1&#8217;r2\ufb01z.5\/i Lfci. ..\u00a2iE&#8217;,\\<\/p>\n<p>eci,&#8217;1-i;i;\u00ab&#8211;; helid :\n<\/p>\n<p>&#8220;II is well knmm #21:!&#8221; If I\/&#8217;M parI1&#8217;e.s&#8217; In (I dIZs&#8217;pLtfe<\/p>\n<p>&#8216;  \/rad c1gnec2d&#8217; Io .s&#8217;cezi&#8217;Ie? r1&#8217;m&#8217;r (]f.$'[):&#8217;:fc&#8221; by arbz&#8217;t1&#8217;aI;.&#8217;0n arid if<\/p>\n<p> there is an. cIg1&#8217;een2ea;-:1 in Him rt-(&lt;,wr&quot;(1&#039;. the Courts&#039; will not<\/p>\n<p>permit r&#039;ec&#039;r2ur.s&#039;e to rim-&#039; olfm&#039; m\u00abI1m&#039;_\\&#039; wz&#039;II&#039;z()uI invoking<\/p>\n<p>E<\/p>\n<p><span class=\"hidden_text\">30<\/span><\/p>\n<p>the r&#8217;er7recf}-* fay waif.&#8217; ofr::*\u00a3&gt;:&#8217;tt&#8217;rItr&#8217;tw. i.m1c*.s&#8217;..s&#8217; 0fc,&#8217;0ur.s&#8217;c*, bolt&#8217;:<br \/>\nthe pczrrim In the z2&#8217;1&#8242;.s&#8217;\/Jim-* z.rgn=c-J an (mot\/zer !?Z()d\u00a3&#8217; of<\/p>\n<p>dispute re.s&#8217;0[m&#8217;i(m. &#8221;\n<\/p>\n<p>7. I_t is to be noticed f&#8217;mi&#8217;n decgided cases that clauses. akin<\/p>\n<p>to clause 52.2 and the interpretatim; thereof have been<\/p>\n<p>matter of disputes referred to arbitration and it  beenii&#8217;hieidi.i<\/p>\n<p>that the arbitrator would be x-vithin E&#8221;:-viis j{ii&#8217;isdie.ti0:n  &#8216;\u00a3i_e.\u00a2iidingi&#8221;\u00ab<\/p>\n<p>the proper interpretation to be ;;)}eeeti oii&#8211;siieh a elai1sev&#8217;gi&#8217;Ver1&#8242;. the <\/p>\n<p>circumstances of the case. (iS&#8221;s:t_i_&#8217; _1\u20aca;n.}-mt\/ii &#8216;Ir2t\u00e9&#8217;;;rzar2&#8242;(2nal<br \/>\nConstructirm (P) Lrd., 1i&#8217;.&#8217;~.&#8221;);&#8217;.tV&#8217;:j!1f.(&#8216; of&#8221; ~&#8211;t._:&#8221;\u00bb9i9\u00a77t)_ J 1 SCC 645 and<\/p>\n<p>State (x?fV&#8217;i1PL(4ffI,_rI'{I:[)ii&#8217;ivi&#8217;;&#8217;VAIfttaFi&#8217;I&#8217;CZitf7?&#8221;-.f,J}\u00a7(1.i&#8221;_It.'(i\/ (2002) I S C C 26).<br \/>\nThe &#8216;rootriion&#8217;*of&#8221;the.  that the said clause unless<\/p>\n<p>interpreted  ._.ith&#8217;isCo-ui&#8217;t&#8217;i in il manner suggested by the<\/p>\n<p>&#8216;V.__petitLi\u00e9}ne.r:would dise.ntit&#8217;le the pCEtI.\u00a7t)t1L&#8217;t&#8217; to raise any claim in<\/p>\n<p>.ari3itratiQr1, forwa varied rate in respect of the enormous<\/p>\n<p>,\/ifiddi{iOA1ivEl,ii&#8221;&#8216;~53vXC\u20ac{\\?;3;t&#8217;iOn work rerideretf. is a desperate contention<\/p>\n<p>seeking i.__iit&#8217;er,\u00a7&#8217;e1&#8217;iti(&#8216;)i1 of this C(&#8216;)iEl&#8217;L<\/p>\n<p>1,3<\/p>\n<p>This contention of the petitioner ought not to deter the<\/p>\n<p>petitioner from raising 21 dispute as to the iRE\u20acI&#8217;p1&#8217;\u20ac[21{i.()i&#8221;&#8216;;.,bf the<\/p>\n<p>clause before the arbitrator and it Wtitiiii be for theitirhitrtitor  &#8216;<\/p>\n<p>the arbitrators to decide the sa:hg=:;'&#8221;&#8216;t)&#8217;a:.z: &#8220;_.consitie&#8217;1*_3.tiori} of.&#8217;<\/p>\n<p>supporting factual data and ;1U\ufb0131&#8243;3Li;ifv}&#8217;i._'(ii&#8217;f\u00a73E.lI&#8217;}&#8217;1S{.\u00a31i)C\u20acS,3 VAKS&#8221;-.to&#8217;~_<\/p>\n<p>whether the remedy of arbitrz1tio&#8221;nuis bar1&#8217;ed._h&#8217;ytiitniittition is a<br \/>\nquestion that is neither 1*aiis&#8217;ed M 2.E&#8217;11&#8217;Vir~i&#8217;\\&#8217;it&#8217;\u00a2tf(%&#8221;{\u00a7~. here. i<\/p>\n<p>8. The question re;;_ltii&#8217; is the. :\\$C(&#8216;)&#8221;p.\u00a3f&#8217;Of;El~VC()I1trZtCtt1&#8217;E11 term<\/p>\n<p>and it cannotfbei}\u00e9se1id.. v:'{&#8216;}1ti\u20acT_ &#8216;tuiyj&#8217; t.gLies&#8217;t\u00e9on&#8217; of violation of a<\/p>\n<p>funda1IVient\u00e9il&#8221;tAright 2i1\u00a7fVivses&#8221;&#8216;i&#8217;o&#8217;t&#8221; eoi1_si'{1&#8242;{:i&#8217;titit)1i in the present writ<br \/>\npetitioh.7V *<\/p>\n<p>g9. _ Insofz1i&#8221;a&#8217;s&#8221;&#8216;the- interloctatory uppiiwtions in I.A.H to<\/p>\n<p> were to be tronsidereci are concerned, I.A.H is<\/p>\n<p>i&#8221;&#8216;fi1ed_Vsieevi\u00e9i&#8217;1i,g Ehf:2v&#8217;CO)3SEi{H\u00a7i{}\u00a7E of&#8217; committee at the behest of this<\/p>\n<p>Cotiit toeciiuantify the competisaticiu payab}_e for the additional<\/p>\n<p> v&#8221;vo1&#8242;&#8211;k. rendered by the petitioner.\n<\/p>\n<p>Z<\/p>\n<p><span class=\"hidden_text\">33<\/span><\/p>\n<p>i.A.N0.iii&#8217; seeks at tiirectioia to NBA! for refund of<br \/>\nmonies received pursuant to invocation of bank guarantees<br \/>\nfurnished by the petitioner.\n<\/p>\n<p>I.A.N0.IV seeks issuance of sun motu p1&#8217;cieee(.iingsi*f0r<\/p>\n<p>contempt of court on E1CC()Li\u00a7&#8217;%E of invocation of bani; gtt\u00a31&#8217;1n\u00e9iiji1tees_Ti ~<\/p>\n<p>during the pendency of these ;_&gt;i&#8217;oceeti\u00a7ngs.._  H  i<\/p>\n<p>I.A.N0.V seeks to l&#8217;L&#8221;S[i&#8217;i1il} theiigtespontients  te_6&#8242; <\/p>\n<p>calling for counter gL1&amp;r&amp;l}{t&#8217;:f5~;  by &#8216;M\/&#8217;s..iS_&#8217;eut&#8217;hefn&#8221; Bank<br \/>\nBerhard, Kauia Lampur, iV.i..t_%i1i}-&#8216;f~;&#8221;iitii.\\ -A<br \/>\ni.A.N&#8217;0.VI is filed sec&#8217;i~;ingi&#8221;Ci()iTeeti0~nj~&lt;)f_i.the order dated<\/p>\n<p>17.3.2606. . e X<\/p>\n<p>In [ii1i&#039;t)i~;&lt;3L&#039;i in the absence of any interim<\/p>\n<p> Q1&quot;de1_jn.&#8211;&#039;0f this Court, even if an inaccurate statement  made<\/p>\n<p>i  V.  the counsel as to whether n\ufb01gtat the same had been actually<\/p>\n<p>.49<br \/>\nDu<\/p>\n<p>encashed is not very imiim\u00e9eai. It may not amount to contempt<br \/>\nof court &#8212; but may be an aamieizlbie inadvertence by counsel.<\/p>\n<p>Hence the application is disn&#039;i:\u00e9+;scc1.\n<\/p>\n<p>The interim order gl&#8221;ai\u00a7&#8217;}it:d on I.A.N0.V on  .<\/p>\n<p>having been continued by ihia C(&gt;:3_:&#8217;L~  };\u00e9&#8217;Hd\u20acf\u20ac&#8217;d <\/p>\n<p>infructuous and hence, the said 2.1ppiiC&#8217;:iti(inS&#8221;2ii&#8217;e ii'&lt;)f1<\/p>\n<p>In the result. the writ ]7i31vli&#039;~i.,(_)a&#039;f&quot;IS&quot;StE1I1.(iiL1. <\/p>\n<p> f .. riv&#039; *-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karnataka High Court Dolomite Berhad vs National Highways Authority Of &#8230; on 14 October, 2009 Author: Anand Byrareddy TEE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 14&#8243;&#8216; DAY OF OCT0BE&#8217;}}:~~2(1Qi9__&#8221;__t:If &#8221; BEFORE: THE I-ION&#8217;BLE MR. JUSTICE s\u00a7.NAN[\u00a7f&#8217;vI34&#8217;15I3iI4\u00a7R-1\u20ac&#8217;Dl3f .;_I WRIT PETITION No.2&#8217;5V778. OEI2nO5(GIM;tREs)t :1 C\/W WRIT PETITION No;:~I.7_os OF 200sIGM&#8211;nEs) WRIT PETITION No.2577s oI?II2Q()5\u00a3(;WI-IRES)&#8217; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-34076","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dolomite Berhad vs National Highways Authority Of ... on 14 October, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/dolomite-berhad-vs-national-highways-authority-of-on-14-october-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dolomite Berhad vs National Highways Authority Of ... on 14 October, 2009 - Free Judgements of Supreme Court &amp; 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