Facts 6:

2. That, Clause 27 of the agreement dated 25.03.2016 stipulates that the contractor must acquire the approval of bank for any change in material. 


3. That, the work of construction was started by the Respondent within 10 days from the receipt of the work order but, on 05.05.2016, the work was stopped by some officers of the Appellant. The Respondent vide letter dated 09.05.2016 informed the Appellant that some officers of the Appellant have directed the Respondent to stop the ongoing construction work and the Respondent had to stop the same. By virtue of the letter dated 09.05.2016, the Respondent requested the Appellant to sought out the matter at the earliest so that the work of construction can be resumed. Similar requests were made by the Appellant vide letters dated 18.05.2016 and 02.06.2016 subsequent to which the Project Architect vide letter dated 13.06.2016 directed the Respondent to start the construction work along with additional work of providing laying of underground new electric and Lan cables, etc and construction of sewer lines and sewer chambers. In response to the letter dated 13.06.2016, the Respondent replied to the Project Architect that the additional work is not covered under the scope of Contract and the execution of the additional work won't be possible for the Respondent.


4. That, despite numerous follow ups by the Respondent, the work of construction could not be started and accordingly on 06.08.2016, the Respondent wrote a letter to the Appellant concluding that due to continuous default on part of the Appellant, the work remained suspended for more than 90 days and therefore, the Respondent is entitled for determination of contract agreement and disbursement of payment of work already carried out in terms of clause 38 of the Agreement.


5. That, thereafter, several meetings in person were held between the parties but when no outcome could be ascertained, the Arbitration clause was invoked by both the parties after adjudication of which, the award in question dated 31.08.2018 was passed in favor of the Respondent.



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