The High Court of Karnataka has rejected a petition filed by M/s GVR Infra Projects Ltd., which had questioned cancellation of the contract awarded to it for upgrading certain stretches of Shiradi Ghat for ₹90.27 crore.
Pointing out that there are several disputed factual aspects with respect to the claims made by the company and the Public Works Department (PWD), the court said that it would be appropriate for the company to avail itself of the alternative remedy, as provided in the contractual agreement, to resort to arbitration under the Arbitration and Reconciliation Act before the civil court.
Order passed
Justice A.S. Bopanna passed the order while dismissing the petition filed by the company questioning the PWD’s January 4, 2017, decision of cancelling the contractual agreement signed on November 6, 2015.
The PWD had cancelled the agreement as the company had failed to comply with the terms of agreement, including not completing the project within the deadline.
However, the company had raised several issues, including that it was not provided with 90% right of way (RoW) by stopping traffic on the stretches on the Ghat to enable it to take up the work swiftly.
The company had also claimed that it had completed several assigned works, including bituminous road strengthening for 21 km.
Claims disputed
On the other hand, the PWD had disputed certain claims while pointing out that the company had failed to procure 60% of materials within the stipulated period to enable 90% RoW, while pointing that contract had not proposed complete stoppage of traffic.
The company was given the contract for strengthening the stretch between Gulagalale and Maranahallii (from 216 km to 237 km) and of providing rigid concrete pavement between Kempuhole and Addahole (from 250.620 km to 263 km).
