w w w . L a w y e r S e r v i c e s . i n



The Chief Engineer, Tamil Nadu Water Supply and Drainage Board, Vellore v/s M/s. Pure Enviro Engineering Pvt. Ltd, Chennai


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Company & Directors' Information:- S P T ENGINEERING PRIVATE LIMITED [Converted to LLP] CIN = U27109UP2005PTC030940

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Company & Directors' Information:- C A G ENGINEERING LIMITED [Active] CIN = U29110PB2006PLC029521

Company & Directors' Information:- D ENGINEERING PRIVATE LIMITED [Active] CIN = U29269TZ1932PTC000046

Company & Directors' Information:- V K B ENGINEERING PRIVATE LIMITED [Active] CIN = U74899DL2005PTC141483

Company & Directors' Information:- INDIA ENGINEERING PRIVATE LIMITED [Active] CIN = U72200PN1999PTC014259

Company & Directors' Information:- C N C ENGINEERING LIMITED [Strike Off] CIN = U93000KA1986PLC007922

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Company & Directors' Information:- G V T ENGINEERING (INDIA) PRIVATE LIMITED [Active] CIN = U29219DL1996PTC082427

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Company & Directors' Information:- G M E P ENGINEERING PRIVATE LIMITED [Active] CIN = U29192DL1998PTC096737

Company & Directors' Information:- J T ENGINEERING PRIVATE LIMITED [Active] CIN = U74899DL1984PTC018756

Company & Directors' Information:- PURE ENVIRO ENGINEERING PRIVATE LIMITED [Active] CIN = U28920TN1996PTC036943

Company & Directors' Information:- M C ENGINEERING CO PVT LTD [Active] CIN = U74899DL1972PTC006392

Company & Directors' Information:- C P ENGINEERING (INDIA) PRIVATE LIMITED [Active] CIN = U27209TN1987PTC014052

Company & Directors' Information:- J B L ENGINEERING PRIVATE LIMITED [Active] CIN = U28112MP2008PTC021459

Company & Directors' Information:- H V S ENGINEERING PRIVATE LIMITED [Active] CIN = U28920MH2005PTC158342

Company & Directors' Information:- S C ENGINEERING CO PVT LTD [Active] CIN = U74210WB1982PTC035623

Company & Directors' Information:- U M ENGINEERING PRIVATE LIMITED [Active] CIN = U29200MH1977PTC019574

Company & Directors' Information:- A V K ENGINEERING PRIVATE LIMITED [Active] CIN = U74899DL1995PTC071971

Company & Directors' Information:- S K ENGINEERING CO PRIVATE LIMITED [Strike Off] CIN = U05001UP1952PTC002408

Company & Directors' Information:- G D ENGINEERING COMPANY (INDIA) PVT LTD [Active] CIN = U74210WB1993PTC058553

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Company & Directors' Information:- C M S ENGINEERING INDIA PRIVATE LIMITED [Strike Off] CIN = U74210TN2010PTC075302

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Company & Directors' Information:- S B ENGINEERING PVT LTD [Active] CIN = U29199GJ1982PTC005292

Company & Directors' Information:- J J ENGINEERING PVT LTD [Active] CIN = U29219WB1986PTC041433

Company & Directors' Information:- D & L ENGINEERING PRIVATE LIMITED [Converted to LLP] CIN = U29113TN2004PTC052690

Company & Directors' Information:- H R P ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U31503MH1997PTC108621

Company & Directors' Information:- S H ENGINEERING PRIVATE LIMITED [Active] CIN = U70101WB1999PTC088930

Company & Directors' Information:- V K S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U28133TN2005PTC057283

Company & Directors' Information:- M K ENGINEERING PVT LTD [Active] CIN = U29199GJ1995PTC027278

Company & Directors' Information:- K J ENGINEERING PRIVATE LIMITED [Active] CIN = U29299PN2006PTC129171

Company & Directors' Information:- C S S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45302TN2003PTC051161

Company & Directors' Information:- A-1 ENVIRO & ENGINEERING PRIVATE LIMITED [Active] CIN = U74999MH2016PTC283913

Company & Directors' Information:- N. P. ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U31100WB2010PTC150609

Company & Directors' Information:- S R K ENGINEERING CO PVT LTD [Active] CIN = U67120WB1994PTC063442

Company & Directors' Information:- M P T ENGINEERING PVT LTD [Strike Off] CIN = U29299KL1994PTC007761

Company & Directors' Information:- T S R C ENGINEERING PRIVATE LIMITED [Active] CIN = U29100UP2020PTC133920

Company & Directors' Information:- C S ENGINEERING INDIA PRIVATE LIMITED [Active] CIN = U28110MH2021PTC361962

Company & Directors' Information:- A K ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U50300UP1981PTC005354

Company & Directors' Information:- H M T D ENGINEERING PVT LTD [Active] CIN = U99999MH1981PTC035175

Company & Directors' Information:- J P ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U28129MH1972PTC015813

Company & Directors' Information:- V M ENGINEERING COMPANY PRIVATE LIMITED [Active] CIN = U28920MH1969PTC014224

Company & Directors' Information:- H M A ENGINEERING LIMITED [Strike Off] CIN = U45209PB2008PLC031777

Company & Directors' Information:- P T S ENGINEERING INDIA PRIVATE LIMITED [Active] CIN = U74210TZ2011PTC016944

Company & Directors' Information:- K S M ENGINEERING PRIVATE LIMITED [Active] CIN = U74210TG1997PTC028612

Company & Directors' Information:- M M ENGINEERING COMPANY PRIVATE LIMITED [Converted to LLP] CIN = U28932MH1979PTC021819

Company & Directors' Information:- N G T ENGINEERING PVT LTD [Active] CIN = U27109WB1968PTC027292

Company & Directors' Information:- M A S ENGINEERING PRIVATE LIMITED [Active] CIN = U99999MH1976PTC019233

Company & Directors' Information:- G R K ENGINEERING (INDIA) PRIVATE LIMITED [Active] CIN = U74200AP2011PTC076356

Company & Directors' Information:- P N S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29120TN2006PTC060120

Company & Directors' Information:- K P ENGINEERING CORPORATION PVT LTD [Strike Off] CIN = U74200WB1961PTC025258

Company & Directors' Information:- M A N INDIA ENGINEERING LTD [Strike Off] CIN = U74200WB1979PLC020893

Company & Directors' Information:- R V K ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29253TN2010PTC074505

Company & Directors' Information:- R K ENGINEERING COMPANY PVT LTD [Active] CIN = U74899DL1975PTC007743

Company & Directors' Information:- G S A ENGINEERING CORPN PVT LTD [Strike Off] CIN = U74210WB1957PTC023382

Company & Directors' Information:- A R M ENGINEERING PRIVATE LIMITED. [Strike Off] CIN = U00500JH1988PTC003057

Company & Directors' Information:- L & V ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45202MZ2005PTC007690

Company & Directors' Information:- S G A ENGINEERING COMPANY PRIVATE LIMITED [Strike Off] CIN = U29200MH2005PTC154349

Company & Directors' Information:- C P C ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29120TZ1986PTC001880

Company & Directors' Information:- P K R ENGINEERING INDIA PRIVATE LIMITED [Strike Off] CIN = U29130TZ2004PTC011094

Company & Directors' Information:- M N B ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U70101TN2005PTC057442

Company & Directors' Information:- K K S WATER PRIVATE LIMITED [Active] CIN = U52100WB2014PTC199844

Company & Directors' Information:- R R K ENGINEERING PRIVATE LIMITED [Active] CIN = U74999WB2011PTC161080

Company & Directors' Information:- M S V ENGINEERING PRIVATE LIMITED [Active] CIN = U52399TG2020PTC147098

Company & Directors' Information:- D M S ENGINEERING CO PVT LTD [Strike Off] CIN = U28920WB1964PTC026168

Company & Directors' Information:- C R T ENGINEERING LIMITED [Strike Off] CIN = U32109DL1990PLC038842

Company & Directors' Information:- S D S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U28999PN2000PTC014838

Company & Directors' Information:- G B L ENGINEERING COMPANY PRIVATE LIMITED [Strike Off] CIN = U29130RJ1998PTC015182

Company & Directors' Information:- N T ENGINEERING COMPANY PVT LTD [Strike Off] CIN = U99999PY1986PTC000445

Company & Directors' Information:- OF WATER PRIVATE LIMITED [Active] CIN = U51909MH2018PTC317142

Company & Directors' Information:- R K ENGINEERING PRIVATE LIMITED [Active] CIN = U31100MH2005PTC152838

Company & Directors' Information:- V J S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29130TN1996PTC036636

Company & Directors' Information:- R. K. V. ENGINEERING PRIVATE LIMITED [Active] CIN = U29253MH2010PTC205237

Company & Directors' Information:- U S ENGINEERING PVT LTD [Active] CIN = U34300CH1986PTC006887

Company & Directors' Information:- A D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U74210OR1989PTC002348

Company & Directors' Information:- R J ENGINEERING COMPANY PRIVATE LIMITED [Active] CIN = U27107RJ1972PTC001441

Company & Directors' Information:- H F ENGINEERING PRIVATE LIMITED [Active] CIN = U29244KL2013PTC033909

Company & Directors' Information:- O N ENGINEERING PRIVATE LIMITED [Active] CIN = U74899DL1988PTC031987

Company & Directors' Information:- I D M ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29199KA1981PTC004517

Company & Directors' Information:- P S R ENGINEERING PVT LTD [Strike Off] CIN = U40200WB1987PTC042244

Company & Directors' Information:- P N ENGINEERING CO PVT LTD [Strike Off] CIN = U74210WB1980PTC032750

Company & Directors' Information:- A M A R ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29219DL1997PTC084187

Company & Directors' Information:- S G D ENGINEERING PRIVATE LIMITED [Active] CIN = U29210KA2009PTC050452

Company & Directors' Information:- PURE WATER ENGINEERING COMPANY PRIVATE LIMITED [Active] CIN = U31909KA1993PTC014001

Company & Directors' Information:- G A S ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29191MH2004PTC149606

Company & Directors' Information:- G T ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29219PN2012PTC145781

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Company & Directors' Information:- K G D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45400WB2014PTC200732

Company & Directors' Information:- 2 PURE PRIVATE LIMITED [Active] CIN = U74999HP2016PTC006322

Company & Directors' Information:- T A ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U28992CH2003PTC025800

Company & Directors' Information:- M N A ENGINEERING PVT LTD [Strike Off] CIN = U45202CH2006PTC030215

Company & Directors' Information:- A A P ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U27106DL2005PTC138318

Company & Directors' Information:- A C ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29253DL2011PTC222515

Company & Directors' Information:- S. Z. ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29253DL2014PTC274095

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Company & Directors' Information:- N I ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U45400DL2015PTC280734

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Company & Directors' Information:- ENGINEER & ENGINEER PRIVATE LIMITED [Active] CIN = U74999DL2016PTC293097

Company & Directors' Information:- C S ENGINEER PRIVATE LIMITED [Strike Off] CIN = U45201DL2003PTC122355

Company & Directors' Information:- T. G. S. WATER PRIVATE LIMITED [Strike Off] CIN = U51109DL2010PTC205948

Company & Directors' Information:- R AND T ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U34300DL2005PTC136846

Company & Directors' Information:- WATER INDIA PRIVATE LIMITED [Active] CIN = U74990DL2016PTC298912

Company & Directors' Information:- THE ENGINEERING CORPORATION PRIVATE LIMITED [Strike Off] CIN = U99999KA1951PTC000699

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Company & Directors' Information:- V. N. ENVIRO PRIVATE LIMITED [Active] CIN = U90000DL2019PTC344719

Company & Directors' Information:- K S PURE INDIA PRIVATE LIMITED [Active] CIN = U15490DL2020PTC368440

Company & Directors' Information:- T J ENGINEERING PRIVATE LIMITED [Active] CIN = U28999MH2021PTC353062

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Company & Directors' Information:- W D ENGINEERING PRIVATE LIMITED [Active] CIN = U29308MH2020PTC345065

Company & Directors' Information:- S D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U18101DL1999PTC102948

Company & Directors' Information:- ENVIRO ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U29197DL1989PTC034672

Company & Directors' Information:- M B D ENGINEERING PRIVATE LIMITED [Strike Off] CIN = U74210DL2008PTC181446

Company & Directors' Information:- A. B. C. ENGINEERING CORPORATION LIMITED [Not available for efiling] CIN = U99999MH1950PLC008192

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Company & Directors' Information:- F M P ENGINEERING PVT LTD [Strike Off] CIN = U29259GJ1965PTC001337

    O.P. No. 103 of 2018 & A. No. 2854 of 2021

    Decided On, 26 October 2021

    At, High Court of Judicature at Madras

    By, THE HONOURABLE MR. JUSTICE N. SATHISH KUMAR

    For the Petitioner: Silambannan, Additional Advocate General, S. Erakine Leo, Advocate. For the Respondent: A. Thiyagarajan, Advocate.



Judgment Text

(Prayer: Petition filed under Section 34 [2] [a] [iii] & b [ii] of Arbitration and Conciliation Act, 1996 to set aside the arbitral award passed by the sole arbitrator dated 18.02.2015.)

1. This petition has been filed challenging the arbitral award passed by the sole arbitrator dated 18.02.2015 in a dispute arose between the parties in respect of operation and maintenance agreement No.CE/NR/01 of 2010- 2011 dated 15.04.2010 for Rs.3,79,41,470/-

2. The petitioner has called for tender for designing, providing construction, erection and commissioning, start up and performance trial run for 6 months followed by 5 years of Operation and Maintenance of 4.86 MLD capacity Sewage Treatment Plant [STP] . The respondent became the successful bidder. The period of completion of the work is 84 months and completion of whole work with about 1-6 milestone from 14.06.2010 to 14.04.2017. As the dispute arose between the parties, the matter was referred by the respondent to the adjudicator as per the contract, particularly with regard to the price variation. Originally a sum of Rs.9,79,926/- was paid to the contractor vide Bill No.LS 14 and part bill and 16th part bill by the then Executive Engineer. As the internal audit raised certain objections, the matter has been referred to the adjudicator by the respondent. The adjudicator has found that the bill paid to the respondent towards price adjustment was correct. As the dispute was not settled, the matter is referred to the sole arbitrator. Before the sole arbitrator, the claimant has made the following claims:

Claim No.1 : Price adjustment benefit of Rs.12,76,136.00

Claim No.2: Price adjustment claim for Trial run and Operation and Maintenance period Rs.6,29,367/-.

Claim No.3: Performance trial run for the 6 months – Rs.7,29, 470/-

Claim No.4: Payment of Extended period for trial run – Rs.4,53,892/-

Claim No.5: Payment for O & M period from 05.07.2014 to 04.11.2014

Claim No.6: Retention Amount Rs.17,12,262/-

3. The respondent has also raised following counter claims:

1. Liquidated Damages for Civil Electrical & Mechanical works

2. Liquidated Damages for Operation and & Maintenance period Rs.13,08,220/-

3. Damages due to loss of income – Rs.43,11,200/-

4. Damages due to payment of salary to TWAD Board staff to be delayed period of contract Rs.42,25,666/-.

The learned arbitrator after analysing the entire materials passed the following award:

The claimant is entitled to the following:

a. Price adjustment – Rs.9,79,926/-

b. Retention Amount – Rs.17,12,262/- against which the present petition has been filed not only challenging the award but also against rejection of the counter claim.

4. The learned Additional Advocate General fairly submitted that as far as the retention amount is concerned they have no case since the amount has been retained by the Department. However, in respect of the price adjustment and the counter claim, the learned arbitrator has without going to the merits of the case has simply dismissed the counter claim on the basis that the matter has not been referred to the adjudicator. It is his submission that the contract does not provide for reference to adjudicator for claiming liquidated damages. Such being the position, the finding of the arbitrator rejecting liquidated damages claimed in the counter claim cannot be sustained in the eye of law and the same is beyond reference. In respect of price adjustment for a sum of Rs.9,79,926/-, the arbitrator without going into the merits of the case, simply Ordered the claim. Hence, the above claim as well as rejection of the counter claim falls within the ambit of perversity.

5. Whereas, the learned counsel appearing for the respondent submitted that the learned arbitrator has infact considered the entire camet of evidence and the contract and passed the award and the same does not require any interference.

6. I have perused the entire award.

7. The scope of interference of the arbitral award is limited, except the grounds contemplated under section 34 of the Arbitration and Conciliation Act is made out, the award cannot be interfered. The contention of the learned Additional Advocate General is that the tribunal has passed the award relating to the price adjustment without any materials.

8. It is to be noted that with regard to the price adjustment, bill has already been paid to the claimant. It has not been disputed. Only when the internal audit raised some objections, the same is said to be recovered and the matter has been referred to the adjudicator's opinion as per the contract. The learned adjudicator, has in fact found that the payment of the bill towards price adjustment to the contractor is correct and the same has not been challenged by the respondent. The arbitrator took note of the fact that price adjustment already paid is made without proper opportunity to the claimant. Besides, the adjudicator has also found that the bill is valid and directed the department to pay the original bill amount which was recovered from the claimant. The reasoning is convincing and the learned arbitrator has infact considered all the materials, particularly the contractual clauses and passed the award. Therefore, this Court do not find any perversity in the Order of the learned arbitrator in passing the award for a sum of Rs.9,79, 926 which is the admitted amount vide bill in LS 14 and 16 by the then Executive Engineer. Therefore, merely because, the internal audit has raised some objections, admitted amount cannot be denied. Hence, this Court do not find any perversity in the award of the learned arbitrator.

9. As far as the retention amount is concerned, the learned Additional Advocate General has fairly submitted that the amount has been withheld by them and the same has to be paid.

10. With regard to the rejection of the counter claim, the finding of the arbitrator that the department has not referred the matter to the adjudicator is perverse, though the contract does not provide for such reference or leave before the adjudicator, it is to be noted that it is not the case of the Department that it suffered heavy damages or th

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ey have taken any steps to mitigate the liquidated damages. No materials whatsoever is available on record to prove that the Department has suffered heavy loss. In fact, in the absence of any evidence, the claim of liquidated damages, as matter of right, cannot be granted. The petitioner has not made out any case to claim damages on account of any loss said to have been suffered by them. In such view of the matter, rejection of the counter claim by the learned arbitrator cannot be found fault. Hence, this Court do not find any merits in this petition and this petition is liable to be dismissed. 11. Accordingly, this Original Petition is dismissed. Consequently, connected application is closed.
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