National Highways Authority Of India v. Progressive Construction Ltd

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IN THE HIGH COURT OF DELHI AT NEW DELHI

+ O.M.P. (COMM) 441/2017 & IA No.14631-32/2017 NATIONAL HIGHWAYS AUTHORITY OF INDIA ..... Petitioner Through Mr S. Nanda Kumar, Mr Ashok C.

Prakash Malhotra, Ms Tanu Priya Gupta, Ms Deepika Nanda Kumar, Mr M. S. Saran Kumar, Mr Sugam Kumar Jha, Advocates.

versus PROGRESSIVE CONSTRUCTION LTD ..... Respondent Through Dr Amit George, Mr Rishabh Dheer, Advocates.

CORAM:

HON'BLE MR. JUSTICE VIBHU BAKHRU

O R D E R

% 19.03.2018 1.

The petitioner (hereafter 'NHAI') has filed the present petition impugning an arbitral award dated 07.06.2017 (hereafter 'the impugned award'). The disputes involved between the parties relate to a claim made by the respondent for price adjustment in terms of Sub-Clause 70.3 of the Conditions of Particular Application (COPA), which is a part of the Contract Agreement dated 20.10.2005 entered into by the parties. 2.

The Arbitral Tribunal had followed the decision of a Division Bench of this Court in NHAI v. M/s NCC-VEE (JV) : FAO (OS) 93/2015 decided on 10.03.2015 and the decision of a Single Judge of this Court in NHAI v. M/s ProgressiveMVR (JV) : OMP 100/2013 decided on 17.06.2016, whereby the award of a similar claim in favour of the respondent was upheld.

Mr S. Nandakumar, the learned counsel appearing for the petitioner points out that in a recent decision delivered by the Supreme Court in NHAI v. M/s Progressive MVR (JV) : Civil Appeal No. 458/2018 decided on 23.02.2016, the Supreme Court has set aside the judgments upholding the interpretation of price adjustment as canvassed by the respondent. 3.

Dr Amit George, the learned counsel appearing on behalf of the respondent also concedes that the present case is squarely covered by the Supreme Court's decision in NHAI v. M/s Progressive MVR (JV) (supra). 4.

In view of the above, the petition is allowed. The impugned award is set aside. The pending applications also stand disposed. The parties are left to bear their own costs.

VIBHU BAKHRU, J MARCH 19, 2018 pkv