Disposed

M/s Vishal Builtech India Pvt. Ltd. v. The East Central Railway and Or5s

Patna HC23 Aug 2012CWJC/14475/2012

Case brief

AI extract

What is this about?

Writ petition filed by a private limited company against the East Central Railway regarding a contract dispute. The court restrained the respondents from encashing the petitioner's bank guarantee until an arbitrator passes an award, subject to the petitioner renewing the guarantee.

What did the court decide?

Respondents restrained from encashing the bank guarantee pending the award of the arbitrator, subject to renewal of the guarantee and cooperation.

M/s Vishal Builtech India Pvt. Ltd. Vs The… — Contract and Commercial Disputes | Patna HC (2012)

¶1

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.14475 of 2012

¶2

======================================================

¶3

M/S Vishal Builtech ( India) Pvt. Ltd., a company incorporated under the Indian Companies Act, 1956 having its Registered Office At LG-1 & 2, Majestic Plaza, West Boring Canal Road, Patna, through its Director Sri Tarun Kumar S/O Sri Kartik Kumar resident of Majestic Plaza, West Boring Canal Road, Patna.

¶4

.... .... Petitioner

¶5

Versus

¶6

The East Central Railway (Construction Department), through its Chief Administrative Officer (Construction) North, East Central Railway, Mahendru Ghat, Patna.

¶7

The Chief Engineer (Construction) North-II, East Central Railway, Mahendrughat, Patna.

¶8

The Deputy Chief Engineer (Construction)-IV, East Central Railway, Hajipur, District Vaishali.

¶9

The Deputy Chief Engineer (Construction)-II, East Central Railway, Samastipur.

¶10

The Executive Engineer (Construction), East Central Railway, Khagaria.

¶11

.... .... Respondents

¶12

====================================================== Appearance :

¶13

For the Petitioner : Mr. Y.V. Giri, Sr. Advocate

¶14

Mr. Raj Kishore Prasad, Advocate

¶15

For the Respondents : Mr. N.K. Agrawal, Sr. Advocate

¶16

Mr. Kumar Uday Pratap, Advocate

¶17

====================================================== CORAM: HONOURABLE MR. JUSTICE JAYANANDAN SINGH ORAL ORDER

¶18

3 23-08-2012 Learned senior counsel for the Railways points out that in terms of Clause 63 of the General Conditions of Contract (for short, G.C.C.), dispute raised by the petitioner in this writ application can be considered in an arbitration proceeding by the General Manager who has to decide and conclude the arbitration and pass award within the time limit fixed after receipt of the contractor’s representation.

¶19

Learned senior counsel for the petitioner, in view of this clause, submits that petitioner is ready to approach the Arbitrator by filing an appropriate representation. However he submits that,

¶20

Patna High Court CWJC No.14475 of 2012 (3) dt.23-08-2012

¶21

2 / 2

¶22

till award is passed by the Arbitrator, respondents may be restrained from encashing the bank guarantee of the petitioner.

¶23

Learned senior counsel for the Railways opposes this prayer and submits that since this writ application is not being entertained on merits, this Court should not pass an interim order restraining the respondents from encashing the bank guarantee.

¶24

After hearing learned counsel for the parties, this Court considers the submission of learned senior counsel for the petitioner as reasonable.

¶25

In the circumstances, this writ application is disposed of with liberty to the petitioner to approach the Arbitrator, in terms of the aforesaid Clause 63 of the General Conditions of Contract i.e. the General Manager, as early as possible, who shall conclude the arbitration proceeding and pass its award positively within the time limit fixed in the G.C.C.

¶26

Till then this Court restrains the respondents from encashing the bank guarantee of petitioner subject to the conditions that petitioner will renew the bank guarantee well in advance before its expiry and shall cooperate in the arbitration proceeding till award is passed.

¶27

(Jayanandan Singh, J)

¶28

B.T/-

M/s Vishal Builtech India Pvt. Ltd. v. The East Central Railway and Or5s

Case brief

What is this about?

What did the court decide?

M/s Vishal Builtech India Pvt. Ltd. v. The East Central Railway and Or5s

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Messers Kumar Stone Works Vs The State Of Bihar and Ors.

Abdul Hafiz Khan Vs The State Of Bihar and Ors.

M/s Ganesh Ram Dokania Engineers and Contractors Vs The State Of Bihar and Ors.

M/s Raj Paper Products and Anr. Vs The Central Bank Of India and Ors.

M/s Swastik Associates Vs The Union Of India and Ors.

The United Sports Works Vs The State Of Bihar and Ors.