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BEFORE

Sri R.Rajamani,
Ex- Commissionerof Railway Safety,
Flat No. 3, Ram Priya AE – 172,
11th Main Road, Ana Nagar,
Chennai – 600040.
………….Presiding Arbitrator

Sri Shiv Kumar,


Retd. General Manager,
N.F.Railway,
Plot No. 9. Block – I, first floor,
Charmwood Village,
Eros Garden Surajkund, Road,
Faridabad–121009.
……………………..Arbitrator

Sri S.R.Chaudhuri,
Retd. General Manager,
East Coast Railway,
EE-118, Flat No. 6,
Salt Lake City, Sector – II,
Kolkata – 700091.
……………………Arbitrator

IN THE MATTER OF:

The Arbitration and Conciliation Act, 1996

AND

IN THE MATTER OF:

Agreement No. EWS -1 (R) for “Construction of

3 (three) Elevated stations at Salt Lake Sector –

V, Karunamoyee and Central Park including


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track supporting viaduct structure of 140 m

length for each station on East-West Metro

Project of KMRCL”

AND

IN THE MATTER OF ARBITRATION

BETWEEN

M/s Simplex Infrastructures Limited., a

company registered under the Indian

Companies Act, having its registered office at

Simplex House, 27, Shakespeare Sarani,

Kolkata – 700017.

…………..

Claimant

-VS-
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Kolkata Metro Railway Corporation Limited (a

Government of India Undertaking), Munshi

Prem Chand Sarani (KMRCL Bhawan),

Kolkata – 700 021

…….Respond

ent

The STATEMENT OF CLAIMS on behalf

of the Claimant abovenamed.

Most respectfully SHEWETH:

1. That the Claimant is engaged in the business of major Civil

Engineering construction activities of specialized nature including

metro railway, station building of metro railway, airport, hydra projects,

massive foundations and construction of highways. The Claimant has

since completed a number of prestigious and time-bound Projects

without any iota of dissatisfaction of any of its clients. The Claimant is

not only a resourceful contractor, but also possess all modern plants
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and equipment and technical personnel of high competency and

experience in the field of execution of Civil Engineering works of divers

nature.

2. That the Respondent had invited tenders, for “Construction of 3

(three) Elevated stations at Salt Lake Sector –V, Karunamoyee and

Central Park including track supporting viaduct structure of 140 m

length for each station on East-West Metro Project of KMRCL” from the

pre-qualified contractors and the Claimant submitted its most

reasonable and economic tender on 08-04-2009. The statements,

positive assertions and representations made expressly and/or by the

implication by the Respondent in the tender documents were

considered to be true and factually correct by the Claimant while

submitting its bid.

3. The Claimant was requested in the negotiation meeting held on

12-05-2009 to offer suitable rebate on quoted rates for both the

tenders. Accordingly, the Claimant vide its letter dated 15-05-2009

(Copy annexed and marked “C-1” at page no. 1 of volume no II) had

condescended to offer rebates in respect of both the tenders subject to

certain conditions as mentioned in the said letter (C-1). The


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Respondent vide its letter dated 18-05-2009 (Copy annexed and

marked “C-2” at page no. 3 of volume no II) had accepted certain

conditions but not all the conditions and called upon the Claimant to

accept the conditions as proposed by the Respondent. The Claimant by

a letter dated 18-05-2009 (Copy annexed and marked “C-3” at page

no. 4 of volume no II) had confirmed the stipulations contained in

Respondent’s letter dated 18-05-2009 (C-2).

4. That the negotiated tender of the Claimant was finally accepted

by the Respondent vide letter dated 23-05-2009 (Copy annexed and

marked “C-4” at page no. 5 of volume no II). The accepted value of

work was Rs.53,09,23,842.00 (Rupees fifty three crore nine lac twenty

three thousand eight hundred and forty two only). In the letter of

acceptance dated 23-05-2009 (“C-4”) the Claimant was directed to

commence the work immediately and the date stipulated for

commencement of work was to be reckoned from 23-05-2009 i.e. from

the date of issuance of the letter of acceptance. In other words, no time

for mobilization was allowed from the date of letter of acceptance before

commencement of the work, which unequivocally suggests that that

the Respondent was equally ready, willing and agreeable to

perform its part of reciprocal obligations in order to enable the


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Claimant to commence the work on 23-05-2009 and to complete

the same within a time frame of 20 months ending on 22-01-2011.

5. That the parties herein entered into a formal agreement on 19-

06-2009 (Copy annexed and marked “C-5” at page no. 27 of volume

no II).

6. That the Claimant craves to set out hereinafter the thumbnail

sketch of the project:-

a) Construction of three nos. elevated stations at Sector – V,

Karunamoyee and Central Park was entrusted to the Claimant by

the Respondent on 23-05-2009 and such construction work

included construction of concrete structural works upto platform

level. The scope of work comprised of construction of piers in

three rows with one row along the central median of the road and

two other rows on either side of the stations at an approximate

distance of 14 meters from the central piers. The sizes of piers

were varying from 900 mm to 1800 mm. the foundation of the

piers was generally on four/six nos. 1200 dia bored cast-in-situ

piles with shaft length varying from 35 m to 45 m and the sub-


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structure involved pile caps of size 5.2 /8.8 m X 5.2. m X 1.8 m.

the construction sequence entailed construction of piers along all

the three rows followed by construction of concourse slab in

longitudinal direction (along the alignment) followed by track

level slab and platform slab together with stair cases and other

ancillary structures. The length of concourse was for 70 m with

average width of 23 m and the length of platform was for 140 m.

b) BRIEF SCOPE OF WORK

The contract involved the following works:-

i) 498 Nos. 1200 mm dia bored cast-in-situ piles of average

depth 36 meter for main piers;

ii) 83 nos. 750 mm dia bored cast-in-situ piles depth 29

meters for entry structures;

iii) 105 nos. pile caps;

iv) 136 nos. of peirs of diameters varying from 900 to 1800

mm;

v) Concourse level slab of an aggregate area of 8.507 sq.m.

against all the three stations together;


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vi) Track/platform level slab of an aggregate area of 8.507

sq.m. against all the three stations together;

vii) 4 nos. cast-in-situ viaducts;

viii) 16 nos. pre cats I – girders;

ix) Internal stair cases together with Entry/Exit structures

plus ancillary structures, UG and OH water tanks etc.

7. Pursuant to the discussion held in the office of the Respondent

on 06-06-2009, the Claimant had submitted its Base Line Programme

on 09-06-2009 (C-7) in terms of clause 10.2 of Special Conditions of

Contract (SCC). It is pertinent to note that such programme was drawn

on the basis of tender stage construction schedule as submitted by the

Claimant. The Claimant once upon called upon the Respondent for

allotment of 5000 sq.m. area in Salt Lake at the earliest to set up

batching plant and other site establishments. The Respondent had

remained conspicuously inert in the matter for a period of about two

months and requested for submission of detailed work programme vide

Respondent’s letter dated 14-08-2009 (C-7 colly). The said letter was

replied by the Claimant vide letter dated 19-08-2009 (C-7 colly)

wherein the Claimant submitted the first revision of the Base Line
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Programme and made it abundantly clear that such revision was

necessitated for the delay in obtaining receivables and preliminary

inputs from the Respondent. As such, the said revised Base Line

Programe was founded on the various inputs received by the Claimant

and/or to be received in future course of time. In an evasive manner

the Respondent vide its letter dated 24-08-2009 (C-7 colly) had stated

that the revised Base Line Programme shows the time for completion

more than twenty three months, when the time stipulated for

completion as per contract was 20 months. As such, the Respondent

requested the Claimant to revise the programme, keeping the time limit

of 20 months and reflecting the interface and access dates pertaining to

other contracts. The Respondent’s letter dated 24-08-2009 (C-7 colly)

was followed by another letter dated 15-09-2009 (C-7 colly) wherein

the Respondent had submitted some specific comments for

incorporating in the Base Line Schedule. Since both the parties were in

quandary regarding availability of inputs and/or receivables from the

Respondent, the Claimant was directed in a meeting held on 14-10-

2009, to draw a rolling programme for a period of three months. In this

connection the Claimant relies on its letter dated 06-11-2009 (C-7

colly) wherein the Claimant reminded the Respondent to issue

approved GAD and AFC drawings for working piles relating to all the

three station locations so that the Claimant could submit the said work
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programme. The Claimant further in its letter dated 13-11-2009 (C- 7

colly) had reiterated the following:-

“--------------we have already mentioned that we shall be able to submit

detail work programme against the said contract only upon receipt of

approved GAD and AFC drawings for working piles for all the three

station locations falling under contract EWS – 1 (R)---------”. The

Claimant however submitted the said three month work programme for

the other package i.e. EWS-2 (R) since AFC drawings for working piles

were partially available for the said project. The Claimant submitted

the second revision of Base Line Programme with its letter dated 09-02-

2010.

8. That notwithstanding the position that the Claimant was

otherwise ready, willing, agreeable and competent to complete the

work, in its entirety, within the stipulated period of completion, the

execution of work had continued inordinately beyond the stipulated

date of completion, grossly on account of delays and defaults on the

part of the Respondent and the work was completed in all respects by

31-05-2012 i.e. with a delay of 16 months beyond the stipulated period

of completion. The Claimant in this regard refers to Respondent’s


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completion certificate issued vide letter dated 21-11-2012-(Copy

annexed and marked “C-6” at page no. 33 of volume II). It shall

appear from the said completion certificate that extension of time was

finally granted upto 31-05-2012 without imposition of liquidated

damages.

9. Broad reasons for delay of the aforesaid period of 16 months

are spelt out hereunder:-

9 (A) Delay in handing over of area of Construction Depot

i) Clause 2.6 of the Notice Inviting Tender, Part – I volume – I

stipulates that the Respondent was to provide a plot of land

measuring 5000 sq.m. to the Claimant for casting yard, batching

plant and other activities. The Claimant had offered rebate for

providing land tro establish batching plant at Salt Lake instead of

Rajarhat area vide Claimant’s letter dated 15-05-2009 (C-1) and

the said stipulation was accepted by the Respondent’s letter

dated 18-05-2009 (C-2). The Claimant was constrained to

remind the Respondent vide letter dated 09-06-2009 (Copy


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annexed and marked “C-7” at page no. 34 of volume no II) to

allot land at Salt Lake as per the agreed terms of the contract.

ii) The said letter was followed by a joint visit by representatives of

both the parties herein and upon such visit the Claimant was

shown the following locations for the said purpose:

a) Subhas Sarobar, beside Eastern Metropolitan Bypass,

opposite Hyatt Hotel, Beleghata, Kolkata.

b) Block – HC, Sector – III, Salt Lake, beside ‘Police Abasan’ &

‘Calcutta Heart Clinic & Hospital and opposite to National

Institute of Homeopathy.

c) Block – GE, Sector – III, Salt Lake, near Girl’s Hostel & Water

Tank No. 12,

iii) The Claimant vide letter dated 12-06-2009 (Copy annexed and

marked “C-8” at page no. 37 of volume no II) inter-alia

requested the plots cited under Sl nos. a) and b) above together

would serve the purpose for the time being.

iv) It would appear from the Claimant’s letter dated 26-06-2009

(Copy annexed and marked “C-9” at page no. 40 of volume no


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II) that the no-objection for setting up of depot was accorded by

the concerned authority after site visit on 23-06-2009.

v) Subsequent to the above, the Claimant had to relocate its Depot

from inside Subhas Sarobar premises due to some unforeseen

occupation of the said location by the Tourism Department to

facilitate taking up some beautification works by them during the

month of August 2010 and this had resulted in reconstruction of

Claimant’s Depot afresh within Salt Lake Stadium complex,

inside IOCL gate involving infructuous expenses and additional

time. This in turn spells out that the Claimant had to remobilize

almost in the midst of the project and this has grossly affected

the progress of work at site. In this regard the Claimant refers to

its letters dated 17-05-2010 (Copy annexed and marked “C-10”

at page no. 41 of volume no II) and 23-08-2010 (Copy

annexed and marked “C-11” at page no. 43 of volume no II).

9 (B) Delay in late handing over of survey control points by the

Respondent.

i) Sub clause 4.14 of General Conditions of Contract (GCC) read

with Sl. No. 8 of Special conditions of Contract (SCC) stipulates


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that GTS bench mark, temporary bench marks and three control

points on all straights and other details shall be handed over by

the Engineer of the Respondent. Setting out is the initial works

for any construction activities and hence the same has to be

given to the Contractor at the start of the project. The Base Line

Programme annexed to the letter dated 09-06-2009 (C-7)

stipulate under ‘Activity ID No. 12’ that the survey station points

should be handed over to the Claimant on 25 th May 2009.

However, inspite of several requests, discussions, communiqués

and follow ups, the Claimant could get the control points only on

01-10-2010 i.e. after a delay of 129 days. Delay in handing over

of survey control points by the Respondent had delayed the entire

activities related to constructions. In this regard the Claimant

refers to its letter dated 10.10.2009 (copy annexed and

collectively marked “C-12” at page no. 44 of volume no II).

9 (C) Delay in issuance of AFC drawings for Test Pile at Central

Park and Karunamoyee Station for initial pile load test:-

Clause no. 4.11 of GCC supplemented with Sl. No. 2 of SCC clearly

obliges the Employer to supply detailed working drawing during

execution of work progressively. As per ‘Activity ID No. 37 of the base


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line programme dated 09-06-2009 (C-7) the Claimant was entitled to

receive the AFC drawings for test pile(s) by 10th June 2009. However,

the same was issued by the Respondent only on 14th September 2009,

i.e. after a delay of 96 days. Thus, delay in issuance of AFC drawings

for Test Piles despite the Claimant’s repeated requests had delayed

planning and procurement of specific tools [compatible with the depth

of the pile bore] & materials, resulting in idling of mobilized resources

as well as delayed commencement of this activity. In this regard the

Claimant refers to the following letters:-

i) Claimant’s letter dated 13.10.2009;

ii) Claimant’s letter dated 22.06.2009;

iii) Claimant’s letter dated 28-07-2009;

iv) Claimant’s letter dated 18-08-2010;

(Copies annexed and collectively marked “C-13” at page no. 49 of

volume no II).

9 (D) Delay in issuance of AFC drawings for Working Piles at

Central Park Station, Karunamoyee station and Sector – V

station:-
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i) AFC drawings pertaining to working piles at Central Park Station

were handed over to the Claimant as late as on 31-12-2009 i.e.

after a delay of 198 days from the date of handing over of such

drawing as per the work programme.

ii) It is further submitted that the station location of Central Park

was shifted from its originally contemplated position as per

tender drawing. Besides, the distance between Grid No. 4 & 5

was also changed from 13.80m to 17.10m and due to the same

the Claimant had to carry out another round of utility detection

work which in turn delayed completion of utility detection and

diversion work at the said station location and also delayed the

commencement of piling work.

iii) Similarly, as per programme the Claimant was to receive AFC

drawing for piles pertaining to Karunamoyee station on 10 th June’

2009 but eventually the same were handed over by the

Respondent on 03rd May, 2010, i.e. after a delay of 321 days.

Consequently, the piling works on central median portion at the

said station location was commenced from onwards 12 th May,

2010.

iv) It is further submitted that the Claimant was issued the drawings

for working piles at the proposed Sector-V station on 27th


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February 2010 and the Claimant had commenced the piling work

at the said station location immediately thereafter i.e. from

onwards 02nd March, 2010. The said delay in issuance of AFC

drawing for working piles had delayed completion of piling work

for the proposed Sector-V station.

In this regard the Claimant refers to the following letters:-

a) Claimant’s letter dated 13.10.2009;

b) Claimant’s letter dated 29.10.2009;

c) Claimant’s letter dated 06.11.2009;

d) Claimant’s letter dated 13.11.2009;

e) Claimant’s letter dated 23.12.2009;

f) Claimant’s letter dated 18.02.2010;

g) Claimant’s letter dated 08.05.2010;

h) Claimant’s letter dated 27.05.2010.

(Copies annexed and collectively marked “C-14” at page no. 62 of

volume no II).
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9 (E)Delay due to non-availability of AFC drawing for pile cap

pertaining to Central Park station, Karunamoyee station and

Sector V station:

i) As per the base line programme (C-7), pile cap drawing(s)

pertaining to Central Park station should have been issued to the

Claimant by 26th June 2009. However, Pile cap drawings for

Central Park station were issued to as late as on 13 th February

2010 i.e. after a delay of 229 days.

ii) Similarly, as per the base line programme, pile cap drawing for

Karunamoyee station were to be issued to the Claimant by 29-06-

2009. However, Pile caps drawing for Karunamoyee station were

issued on 11th May 2010, after a delay of 316 days. Delay in

issuance of AFC drawings and details have adversely affected the

work leading to severe delays and financial losses.

iii)As per the base line programme (C-7) pile cap drawings

pertaining to Sector V station were to be issued by 29-06-2009

but the same were handed over to the Claimant as late as on 29-

03-2010 i.e. after a delay of 273 days.

iv)In this regard the Claimant refers to its following letters:-


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i) Claimant’s letter no. 012/KMRCEWS1/CL/MYCEL/001/VOL-

4/0321 dated 22.04.2010;

ii) Claimant’s letter dated 08.05.2010;

iii) Claimant’s letter dated 24.05.2010.

(Copies annexed and collectively marked “C-14/1” at page no. 91

of volume no II)

9 (F) Delay due to non-availability of AFC drawing for piers:

i) As per the base line programme (C-7), the Respondent was

contractually obliged to hand over the AFC drawings for Piers by

07th July 2009 to the Claimant. However, for the proposed

Central Park station, the same were issued to the Claimant as

late as on 13.02.2010, thereby delaying the activity by 221 days.

ii) Similarly, as per the base line programme, the Respondent was

contractually and/or otherwise bound to supply the AFC

drawings for Piers at Karunamoyee Station and Sector V by 13 th

July 2009. However, drawings for Karunamoyee station were

issued only on 09-06-2010 thereby delaying the activity by 331

days. The first set of drawings pertaining to Sector V station were

issued 0n 04-05-2010 thereby delaying the activity by 295 days.


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In this regard the Claimant refers to the following letters:-

a) Claimant’s letter dated 08.05.2010;

b) Claimant’s letter dated 24.05.2010.

(Copies annexed and collectively marked “C-14/2” at page no. 97

of volume no II)

9 (G) Delay due to non-availability of AFC drawings for Pier Caps:

i) As per the baseline programme (C-7) the Claimant was to receive

the AFC drawings for Pier Caps pertaining to Central Park station

by 07-07-2009. However, Pier Cap drawings (R0) for Central Park

station were issued to the Claimant only on 4 th May 2010, i.e. on

passage of 301 days from the date, as mentioned in the baseline

programme. Needless to explain that delayed issuance of AFC

drawing by the Respondent grossly delayed the Pier Cap activities

and the subsequent activities related to the same resulting in

overall shift of completion period.

ii) Similarly, as per the baseline programme, issuance of AFC

drawings for Pier Caps at Karunamoyee Station was envisaged by

13th July 2009. However, Pier Cap drawings were issued only on
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10th June 2010, i.e. after a delay of 332 days from the baseline

programme. Furthermore, as regard to common pier caps at the

proposed Karunamoyee station, the Claimant had to wait for the

2nd stage casting of hammer head after casting of 1 st stage, till the

contractor entrusted with viaduct works completed the launching

of pre-cast segments for the span connecting to the common pier

caps. Such sequence of activities was not envisaged and/or

indicated during tendering stage. The Claimant had completed

the 1st stage casting of the common pier cap at P130 (i.e. K2 pier)

on 27th September, 2010. However, the hammer head portion of

the said common pier cap couldn’t be cast till 15 th November,

2010 owing to pending erection of pre-cast segments of the span

connecting to the common pier cap (K2), by the viaduct

Contractor. The consequences of this stage-wise casting of

common pier caps, which was dependent upon erection of

corresponding viaduct span by the viaduct contractor delayed the

progress of the work. In this regard the Claimant refers to the

Minutes of Meeting held at the CES Centre on 09-10-2010 (copy

annexed and marked “C-14/3” at page no. 99 of volume no

II).
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iii) As per base line programme AFC drawings pertaining to Sector V

station were to be handed over to the Claimant by 13-07-2009

but the same were made over to the Claimant on 04-05-2010 i.e.

after a delay of 295 days.

9 (H) Delay in issuance of AFC Drawings for Superstructure

components by the Respondent pertaining to Central Park station,

Karunamoyee station:

i) As per the baseline programme (C-7), the Respondent was

contractually and/or otherwise bound to issue AFC drawings for

Superstructure (Concourse Slab, Column, Beam etc.) by

21.07.2009. However, the Claimant received the first set of

superstructure drawing only on 30th August, 2010.

ii) It is respectfully submitted that the work was already delayed

due to the reasons enumerated above. It is pertinent to note that

unless the foundation works (Piling works) were completed, the

Claimant could not have proceed with the sub structure (Pile

Caps, Piers) works. Though, based on the availability of site and

drawings, the Claimant had achieved partial progress in

foundation and substructure works, superstructure works were

completely dependent on the completion of the substructure

works. Thus, Superstructure works were already delayed due to


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delayed execution of the foundation and sub structures works,

due to reasons solely attributable to the Respondents. In addition

to the above delays, delayed issuance of AFC drawings of Super

Structures further delayed the planning and procurement works

for the Super Structure.

iii)In addition to the assortment of above delays, the details of cut-

outs for platform beams were issued to the Claimant on 26 th

October, 2010 i.e. only 2 days prior to casting of stage-1 of

platform beams and slab for Central Park station. On receipt of

cut-out details, the Claimant had to carry out various

modifications in the already fixed reinforcement rods and

shuttering at the cut-out locations to make provision for those

cut-outs and this delayed the casting of stage-1 of platform slab

by 2 days as it could be finally casted no sooner than 30 th

October, 2010. However, the AFC drawing for cut-out details were

finally issued to the Claimant on 19th November, 2010.

Furthermore, the details of embedded PVC conduit pipes, which

need to be provided for passage of electrical, lightings, ISMS

control and fire control wiring etc., were also issued to the

Claimant on 3rd October, 2010 and the same in turn had delayed
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casting of stage-1 of track slab for the Central Park station. Even

at this stage the Claimant was kept waiting for AFC drawing(s) for

details of embedded PVC conduit pipes.

iv)As already stated under Sl. No. D) hereinabove, due to shifting of

Grid-5 towards BNM playground, the cantilever portion of the

proposed Central Park station got intruded inside BNM

playground area and the same called for a fresh round of review

of designs and drawings. Consequently, the BNM authorities

were approached by the Respondent to sort out the issue.

However, due to the said reason too, superstructure work at the

said station location got delayed.

v) It is further submitted that the Claimant was issued an advance

drawing showing the beam details at track level slab from C to H

grid at Central Park station on 17 th August’2010. Since, the

project had already suffered substantial delays; the Claimant had

commenced arrangement for staging and shuttering to avoid

further delay and for the best interest of the project from Grid No.

H towards Grid No. G, based on such advance drawings.

However, as per the tender stage consideration, the Claimant had

envisaged commencement of superstructure work from either end


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of the proposed station location rather than from an intermediate

point of the station. The above change in sequence of work,

which was beyond the control of the Contractor, makes the

Contractor eligible to get extension of time as per Sub-clause No.

12.1, g of GCC of the contract agreement.

In this regard the Claimant refers to the following letters

wherefrom it will be palpably clear that there was a gross delay

on the part of the Respondent in handing over of AFC drawings

pertaining to superstructure components :-

a) Claimant’s letter dated 08.09.10;

b) Claimant’s letter dated 24.09.10;

c) Claimant’s letter dated 26.10.10;

d) Minutes of Meeting dated 19-04-2010.

(Copies annexed and collectively marked “C-14/4” at page no. 101

of volume no II)

vi)Similarly, as per the baseline programme, issuance of AFC

drawings for superstructure works at Karunamoyee Station was

envisaged on 27th July 2009. However, the Contractor could

receive the first set of super structure drawing only on 9 th August

2010 after a sizeable delay of 360 days from the baseline

programme.
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vii) In this regard the Claimant refers to the following letters

wherefrom it will be palpably clear that there was a gross delay

on the part of the Respondent in handing over of AFC drawings

pertaining to superstructure components :-

a) Claimant’s letter dated 25.06.2010;

b) Claimant’s letter dated 28.09.2010;

c) Claimant’s letter dated 26.10.2010.

(Copies annexed and collectively marked “C-14/5” at page no. 113

of volume no. II).

viii) As per the baseline programme, AFC drawings for

superstructure works pertaining to Sector V station was to be

handed over to the Claimant by 27-07-2009. However, the same

were issued on 03-09-2010 i.e. after a delay of 417 days.

ix)In this regard the Claimant refers to the following letters

wherefrom it will be palpably clear that there was a gross delay

on the part of the Respondent in handing over of AFC drawings

pertaining to superstructure components :-

a) Claimant’s letter dated 28.09.2010;


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b) Claimant’s letter dated 25.10.2010;

(Copies annexed and collectively marked “C-14/6” at page no. 122

of volume no. II).

9 (I) Increase in scope of foundation works:-

i) As per Item No. B of Schedule A of Bill of Quantities (BOQ), scope

for piling works was stipulated as 10,500 RM. Ii shall appear

from Respondent’ s General Consultant (MYCEL) vide letter dated

09-07-2010 (Copy annexed and marked “C-15” at page no.

128 of volume no II) that the foundation works had increased to

19,750 RM. Hence the scope for piling works was increased by

88.09% from the original quantity in BOQ. This sizeable increase

in foundation works had an inevitable impact on the intermediate

milestone and final completion of the project as well.

ii) Total scope of pile foundation work as well as sub-structure and

superstructure works had been increased to a sizeable extent

with respect to tender stage considerations at the proposed

Sector-V station. As per the tender stage drawings, 18 to 24 nos

piles, 6 nos pile caps and 6 nos piers were supposed to be


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constructed inside the Eastern Drainage [ED] Canal. Whereas, as

per the received AFC drawings, 137 nos piles, 22 nos pile caps

and 31 nos piers were to be constructed inside the ED Canal.

Moreover, the length and width of the concourse area was also

increased and the same has resulted in substantial increase in

scope of superstructure works at the said station location.

iii) Increase in foundation works had a direct bearing on the

completion schedule for all the stations. Station-wise variation in

pile foundation work with respect to quantity stipulated in the

BOQ of the referred contract agreement is as tabulated below.

Quantity
Revised
Sl. Item Stipulated in
Station Quantity % Variation
No. Description the BoQ
(RM.)
(RM.)

1 Central Park Piling 3500.000 * 7089.90 (+)102.57

2 Karunamoyee Piling 3500.000 * 3028.40 (-)13.47

3 Sector-V Piling 3500.000 * 7835.47 (+)123.87

Provision for
further increase in
scope of work for
4 Piling 1795.38
construction of
entry structures at
various stations.

Total 10500.000 19749.15 (+)88.09

* Considering BoQ quantity for each Station = Total BoQ Quantity/3 = 10,500 RM./3 = 3500.000 RM.
~ 29 ~

9 (J) Non-availability of permission to commence piling work on

Grid No - 1 & 2 (inside Sech Bhavan and Bikash Bhavan premises):-

i) That as per stipulation laid down in Clause 2.1 (General

Obligations of Employer) of GCC, the Respondent was to provide

the site and make payment to the Claimant in accordance with

the Contract. As per Clause 4.20 (Right of Way & facilities) of

GCC the Respondent was obliged to acquire and provide land for

permanent works and right of way. Clause 10.3.2 of GCC states

that the Employer shall give the Contractor, right to or right of

access to or possession of all or parts of site as the case may be

from time to time as stated in the contract and as confirming

with the requirement of the programme of the work.

ii) A such, it is palpably clear from the averments of the above

contract clauses that the Respondent was contractually or

otherwise obliged to give access and possession of site {working

fronts inside Sech Bhavan and Bikash Bhavan (for Grid No. 1 &

2) } to the Claimant.

iii) However, the Respondent had failed to fulfill the aforesaid

contract clauses within the prescribed time, leading to frequent


~ 30 ~

shifting, under utilization & idling of resources from one station

to another; resulting in severe delays and financial losses to the

Claimant.

iv) The Claimant had completed installation of all 129 nos. piles on

Grid Nos. 3, 4 & 5 on 06 th August, 2010. However, permission to

commence piling work inside the Sech Bhavan premises was

accorded only on 05th October, 2010.

In this regard the Claimant refers to the following letters:-

i) Claimant’s electronic mail dated 30.07.2009;

ii) Claimant’s letter dated 06.08.2010.

(Copies annexed and collectively marked “C-16” at page no. 132 of

volume no II).

9 (K) Delay due to non-availability of permission to commence

piling work on Grid No. 1 & 2 (inside the Bikash Bhavan premises):-

The Claimant had installed 20 nos. piles on Grid No. 1 & 2, which

were falling inside the Sech Bhavan premises by 05 th November,

2010. However, permission to commence piling work inside the

Bikash Bhavan premises to install balance 12 nos. piles was

granted on 12th November, 2010 i.e. on passage of 7 more days.


~ 31 ~

9 (L) Delay due to non-availability of permission to commence

piling work on Karunamoyee bus depot side (Grid No. 3):

The Claimant had completed the works pertaining to piling work on

central median portion and on Vidyut Bhavan side by 17 th August,

2010. However, due to non-availability of further working front on

Karunamoyee bus depot side, balance 22 nos. piles of Grid No. 3

couldn’t be taken up immediately. Piling work on Karunamoyee bus

depot side could be resumed only on 20th September, 2010 upon grant

of permission for the same by the Respondent. In this regard the

Claimant refers to its letter dated 18-08-2010 (copy annexed and

marked “C-17” at page no. 134 of volume no II).

9 (M) Delay due to Non availability of permission to commence

piling work on northern canal bank at the proposed Sector-V

station:

At the Sector-V station location, working front for installation of

piles on Grid No. 3 was made available to the Claimant only upon

diversion of 8 nos. 132 KVA WBSEDCL cables by the corresponding

authority from onwards 25th May, 2010. In this regard the Claimant
~ 32 ~

refers to the Minutes of Meeting dated 25-11-2009 (copy annexed

and marked “C-18” at page no. 135 of volume no II).

9 (N) Delay due to non-availability of working front for installation

of balance 11 nos. piles on Karunamoyee bus depot side (Grid No.

3) due to existence of shops infringing with piling works:

The Claimant could start piling work on Karunamoyee bus depot

side only on 20th September, 2010. However, out of 22 nos.

available piles the Claimant could install only 11 nos. piles owing to

presence of encroachments. Working front for installation of

balance 11 nos. piles on Karunamoyee bus depot side had not been

made available by the Respondent to the Claimant till 15-11-2010.

In this regard the Claimant refers to the following

correspondences:-

a) Minutes of Meeting dated 05-10-2010;

b) Respondent’s letter dated 13-11-2010.

(Copies annexed and collectively marked “C-18/1” at page no. 137

of volume no II).
~ 33 ~

9 (O) Non-availability of permission to commence piling work on

Airport bound carriageway of Rajarhat Newtown Road for Grid No.

4:

i) That during the progress review meeting held on 26-08-2010, the

Claimant was instructed by the Respondent to deploy 2 nos.

piling rigs at the proposed Sector-V station location to complete

the piling work on Grid No. 4 expeditiously. Although, the pile

boring work on Grid No - 3 was completed by 28-08-2010, but

the Claimant was given permission to commence piling work on

Grid No-4 from onwards 04-09-2010 for 6 nos. piles out of total

39 nos. piles of Grid No 4. Since, the Claimant was only allowed

to do piling work for 6. nos working piles (1 pile group), only a

single piling rig could be engaged from onwards 04-09-2010 and

the 2nd piling rig was rendered idle at the said station location.

Consequent to the above, the Claimant was granted permission

to take up the balance piling work falling under Grid No 4 only on

10-09-2010 and then only the 2nd rotary piling rig for pile boring

work could be engaged, which had so far been idle at that

location..

a) Claimant’s letter dated 31.08.2010;


~ 34 ~

b) Claimant’s letter dated 11.09.2010;

c) Claimant’s letter dated 27.09.2010.

(Copies annexed and collectively marked “C-19” at page no. 144 of

volume no II).

9 (P) Delay in commencement of pile cap construction work inside

E.D. Canal due to non-availability of permission to carry out canal

filling work before the monsoon of Year 2010: As per tender stage

considerations, only 6 nos. of pile caps were to be constructed inside

the E.D. canal and the Claimant had envisaged construction of those

pile caps adopting localized filling inside the canal. However, the

numbers of pile caps inside the canal were increased to 22 nos. i.e. by

3.67 times than the tender stage consideration. In addition to this, the

individual pile cap sizes also got increased with minimum number of

piles in any singular group being four and the largest group is having

as many as 20 piles as against 3 piles per group, indicated in the

tender stage drawing. The sizeable increase in numbers of piles, pile

caps and piers inside the E.D. Canal at the proposed Sector-V station

location called for filling of entire width of E.D canal for an approximate

length of 150 meters followed by laying of two rows of 1200 mm dia

NP3 pipes for the said length to maintain dry weather canal water flow.
~ 35 ~

Upon completion of entire piling works falling under Grid 1 & 2 inside

ED Canal on 04-07-2010, the Claimant could not commence the pile

cap construction inside ED canal, immediately. The Claimant was

instructed to postpone the commencement of construction of pile caps

inside the E.D. canal in view of the ensuing monsoon of Year 2010.

Accordingly, the Claimant had reinstated the canal before the onset of

monsoon. Nonetheless, to construct the pile caps and piers inside the

E.D. canal and to take up superstructure work, the Claimant had to

once again fill up the canal post monsoon to commence the sheet piling

work and also reinstate the canal once again upon completion of work.

In view of the above, repeated filling and excavation work inside the

canal due to sizeable variation from tender stage considerations during

execution phase at the said station location, delayed the work in its

entirety.

In this regard the Claimant refers to the following

correspondences:-

a) Claimant’s letter dated 25.02.2010;

b) Claimant’s letter dated 24.03.2010;

c) Minutes of CE, KMRCL's meeting held on 16.06.2010

d) Minutes of MD, KMRCL's Progress Review meeting held on

05.10.2010.
~ 36 ~

(Copies annexed and collectively marked “C-20” at page no. 150 of

volume no II).

9 (Q) Delay due to non-availability of permission to commence

construction of pile caps on Airport bound carriageway of Rajarhat

Newtown Road for Grid No. - 4, before Durga Puja:

On completion of pile boring work on Grid No. 4, the Claimant had

to open the airport bound carriageway for traffic upon the

Respondent’s instruction on 27-09-2010, in consideration of the

festive season of the Year 2010. Subsequently, the road blockage

permission to commence construction of pile caps on Grid No. 4

was again granted on 03-11-2010 i.e. on passage of 37 days after

opening of road for traffic.

In this regard the Claimant refers to the following correspondences:-

a) Claimant’s letter dated 01.10.2010

b) Claimant’s letter dated 18.10.2010

c) Claimant’s letter dated 19.10.2010

d) KMDA Memo No. 314/KMDA/DGO/TT/S-1 dated 20.10.2010

e) Claimant’s letter dated 05.11.2010


~ 37 ~

(Copies annexed and collectively marked “C-21” at page no. 225 of

volume no II).

9 (R) Extension of time due increase in length ad width of

concourse area:

There was an increase in the length and width of the concourse

area {i.e. from 2627 sq.m to 5845 sq.m(122%)} as per the AFC

drawings issued by the Respondent and the same was not

envisaged during the tendering stage leading to further delay in

execution of the work.

9 (S) Delay due to stoppage of work at night between 11 PM to 6

AM as per KMRCL’S instruction :-

As per the Respondent’s instruction the Claimant had to stop work at

night between 11Pm to 6 Am at Sector V station form 22-03-2010

resulting in under utilization of the Claimant’ 2 nos. of hydraulic piling

rig and allied machinery and man power deployed at such location.

Such embargo delayed the completion of the work in its entirety. In this
~ 38 ~

regard the Claimant refers to its letter dated 03-04-2010 (copy

annexed and marked “C-22” at page no. 230 of volume no II).

9 (T) Embargo from Bidhan Nagar Police Authority, in view of

Durga Puja (2009 and 2010):

i) That vide Memo No. 1099/(3) BDNZ/09 dated 22-09-2009 (copy

annexed and marked “C-23” at page no. 231 of volume no II)

issued by the Additional Superintendent of Police, Bidhannagar,

addressed to the Respondent with a copy marked to the

Claimant, request was made to inter alia to stop the work due to

the ensuing Durga Puja festival and as a result works were

completely suspended from 23-09-2009 to 30-09-2009.

ii) Similarly vide Memo No. /BDNZ/10 dated 05-10-2010

(copy annexed and marked “C-24” at page no. 232 of volume

no II) Additional Superintendent of Police, Bidhannagar inter alia

requested to stop the work due to the ensuing Durga Puja festival

and as a result works were completely suspended from 13-10-

2010 to 20-10-2010.
~ 39 ~

9 (U) Delay due to acute shortage in supply of aggregate at site: The

Claimant vide letter dated 18.05.10 (copy annexed and marked “C-

25” at page no. 234 of volume no III) had intimated the Respondent

that the work had come to a standstill since 14 th May 2010 due to

some unprecedented problem at quarries/ crusher plants leading to

acute shortage of 10mm & 20mm coarse aggregates. The problem

started 2-3 weeks ahead of Claimant’s letter dated 18-05-2010 (C-25).

The matter was also brought to the knowledge of MD, KMRCL during

meeting at HRBC Bhavan on 18 th May 2010. The situation was

completely unforeseeable by the Claimant resulting in stoppage of

works from 14th May 2010 to 05th June 2010. The Claimant once again

vide letter no. 012/KMRCEWS1&2/CL/MYCEL/001/VOL-4/0379

dated 05-06-2010 (copy annexed and marked “C-26” at page no.

235 of volume no III) had inter alia stated that due to non-handing

over of total area by the Respondent, it was not possible to stack

enough concreting materials so as to carry on unhindered execution of

work in such crisis period. Such letter was followed by Claimant’s letter

dated 14-06-2010 (copy annexed and marked “C-27” at page no.

237 of volume no III).


~ 40 ~

9 (V) Delay due to non-availability of designated dumping yard for

disposal of surplus non-serviceable materials and waste from site:

i) As per provision of the contract the Respondent was to provide

designated dumping yard for disposal of surplus and non-

serviceable materials like muck generated from boring of piles,

earth generated from excavation of pile caps, chipped off pile

heads, liquid waste etc. to the Claimant. Due to the failure on the

part of the Respondent to meet such contractual obligation, the

Claimant had to temporarily store the said non-serviceable

materials to some nearby places adjacent to the site. Thereafter,

the Claimant had to again hire some outside agencies under

duress to facilitate disposal of the above said materials at various

dumping grounds at a distance of around 30 km from site. The

said re-handling and disposal of non-serviceable and surplus

materials from site at a much longer distance entitled the

Claimant to extension of time as well as extra cost as the same

was not envisaged during the tendering stage.

ii) In this regard the Claimant refers to the following letters:-

a) Claimant’s letter dated 19.11.09;

b) Claimant’s letter dated 01.12.09;


~ 41 ~

c) Claimant’s letter dated 18.02.10;

d) Claimant’s letter dated 03.04.10;

e) Claimant’s letter dated 07.04.10.

(copies annexed and collectively marked “C-28” at page no. 239 of

volume no III)

iii) The Respondent’s General Consultants, MYCEL vide letter dated

26-04-2010 (copy annexed and marked “C-29” at page no.

258 of volume no III) had even acknowledged the failure on the

part of the Respondent to provide a designated dumping yard as

per provision of the contract and vide letter dated 30-07-2010

(copy annexed and marked “C-30” at page no. 259 of volume

no III) had arbitrarily ascertained Rs. 21,93,638/- as extra cost

incurred by the Claimant on account of disposal of earth muck

etc.

10. That owing to the delays and defaults on the part of the

Respondent as spelt out hereinbefore, the Claimant vide letter dated

26-11-2010 (Copy annexed and marked “C-31” at page no. 262 of

volume no III) had applied for extension of time in respect of each of

the stations considering the hindrances encountered upto15-11-

2010, as stated hereinbelow;


~ 42 ~

Elevated station Date of Delay in days Expected date of


including track
supporting viaduct completion as per completion
structure
base line

programme (C-7)

Central Park 08-02-2011 617 dys 17-10-2012

Station

Karunamoyee 08-02-2011 540 days 01-08-2012

station

Sector V station 22-01-2011 772 days 04-03-2013

The Respondent pursuant to such application for extension of time had

granted three nos. of interim extension of time in sequence, for the

periods of three months (upto22-04-2011), one month (i.e. upto 22-05-

2011) and upto 30-09-2011. Formal extension of time against first

formal prayer for extension was granted upto 31-12-2011.


~ 43 ~

11. The Claimant had applied for the second extension of time vide

Claimant’s letter dated 12-10-2011 (Copy annexed and marked “C-

31/1” at page no. 265 of volume no III), stationwise as follow:-

a) For Central Park station upto 31-03-2012;

b) For Karunamoyee station upto 30-04-2012;

c) For Sector V station upto 31-05-2012.

12. Extension of time was granted by the Respondent upto 30-04-

2012, pursuant to Claimant’s application dated 12-10-2011 (C-31/1)

as aforementioned and such application was made on the following

grounds:-

a) Non-availability of Final AFC drawing for entry/exit structures;

b) Non-availability of Final AFC drawing for ancillary structures;

c) Non-availability of encroachment / obstruction free working

front;

d) Non-release of payments;

e) Non-availability of approval for increase of contract value;

f) Miscellaneous stoppages.
~ 44 ~

13. The Claimant had applied for the third and final extension of

time vide Claimant’s letter dated 10-04-2012 (Copy annexed and

marked “C-31/2” at page no. 268 of volume no III) upto 31-05-2012

on the following grounds:-

a) Delayed instruction for additional works relating to construction

of ASS/TSS building at Central Park station after demobilization

of resources form site by the Claimant;

b) Delay in handing over of AFC drawings pertaining to ASS/TSS

building at Central Park station.

14. The Respondent vide letter dated 14-05-2012 (C-33 colly) had

granted extension of time upto 31-05-2012 as prayed by the Claimant

and the work was actually completed on 31-05-2012.

15. The Respondent from time to time vide letters mentioned

hereunder had extended time on ad interim basis subject to final

decision in the mater by the Board of Directors of the Respondent. It is

pertinent to note that the Respondent made no iota of dispute on the

grounds based on which the extensions of time were prayed for by the
~ 45 ~

Claimant and thereby acknowledged the various reasons for delays as

narrated in the aforesaid formal prayers for extension of time.

a) Respondent’s letter dated 27-01-2011, extending time for three

months without levy of L.D.

b) Respondent’s letter dated 19-04-2011, extending time for one

month without levy of L.D.

c) Respondent’s letter dated 18-07-2011, extending time upto 30-

09-2011 without levy of L.D.

(Copy annexed and collectively marked “C-32” at page no. 270 of

volume no III)

16. The Respondent further vide letters mentioned hereunder had

communicated grant of extension of time to the Claimant under the

provision of clause 10.7 of GCC:-

a) Respondent’s letter dated 11-08-2011, extending time upto 31-

12-2011 without levy of L.D., as approved by the Respondent’s

Board of Directors;
~ 46 ~

b) Respondent’s letter dated 16-12-2011, extending time upto 30-

04-2012 without levy of L.D., as approved by the Respondent’s

Managing Director;

c) Respondent’s letter dated 14-05-2012, extending time upto 31-

05-2012 without levy of L.D., as approved by the Respondent’s

Managing Director.

(Copy annexed and collectively marked “C-33” at page no. 273 of

volume no III)

It is pertinent to point out that work was admittedly completed on

31-05-2012.

17. That the perusal of Claimant’s prayer or extensions of time and

approval of the Respondent thereto should reveal that extensions of

time were necessitated for the delays and defaults on the part of the

Respondent and the aforesaid factual positions are narrated in a

compilation hereunder:-
~ 47 ~

EOT BRIEF REASONS FOR PERIOD OF PERIOD OF ENTITLEMENT TO


NO. WHICH EXTENSION EXTENSION EXTENSION EXTENSION UNDER THE
WAS PRAYED SOUGHT FOR GRANTED PROVISION OF
UPTO CONTRACT

01st 1. Delay in handing 1. Central Park 03 (three) months 1. Clause 2.6 of the Notice
interim over of area for station – 617 days. i.e. up to Inviting Tender, Part –I,
EOT Claimant’s Depot. 22.04.2011 Volume 1 of the Contract
2. Delay in handing Document, regarding
over of survey control 2. Karunamoyee (01st interim EOT) Construction Depot.
points. Station - 540 days. 2. Sl. No. 8 of Special
3. Delay in issuance conditions of Contract (SCC)
of AFC drawings for adding supplement to General
Test Pile (initial pile 3. Salt Lake Sector- Conditions of Contract (GCC)
load test). V Station - 772 sub clause 4.14 on setting out.
4. Delay in issuance days. 3. Sl. No. 2 of SCC
02nd of AFC drawing for 01 (one) month supplement to GCC sub Clause
interim working piles. i.e. up to no. 4.11 (specifications and
EOT 5. Increase in scope 22.05.2011 drawings).
of works. 4. Clause 10.7 of GCC.
6. Delay due to Non (02nd interim 5. Clause 2.1 (General
availability of working EOT) Obligations of Employer) of
front. GCC.
7. Delay due to non- 6. Clause 4.20 (Right of Way
availability of AFC & facilities) of GCC.
drawing for pile caps. 7. Clause 10.3.2 of GCC.
03rd Up to 30.09.2011
8. Delay due to non- 8. Clause 10.3.3 of General
interim availability of AFC Conditions of Contract
EOT drawing for piers. (03rd interim 9. Clause 2.2 of General
9. Delay due to non- EOT) Condition of Contract.
availability of AFC 10. Clause 4.19 of General
drawings for Pier Caps. Condition of Contract.
10. Delay in issuance 11. Clause 10.6 of General
of AFC Drawings for Conditions of Contract
Superstructure 12. Clause 12.1 of General
components. Conditions of Contract
11. Miscellaneous 13. Clause 12.2 of General
01st Up to 31.12.2011
stoppages. Conditions of Contract
formal
EOT (01st formal EOT)

02nd 1. Delay due to non- 1. Central Park Up to 30.04.2012 1. Clause 2.2 of General
formal availability of final station – Condition of Contract
EOT AFC drawing for entry/ 31.03.2012. 2. Clause 4.19 of General
exit structures. Condition of Contract
2. Delay due to non- 3. Clause 4.20 of General
availability of final 2. Karunamoyee Condition of Contract
AFC drawing for Station – 4. Clause 10.3.2 of General
ancillary structures. 30.04.2012. Condition of Contract
3. Delay due to Non 5. Clause 10.3.3 of General
availability of Conditions of Contract
encroachment/ 3. Salt Lake 6. Clause 10.6 of General
~ 48 ~

obstruction free Sector-V Conditions of Contract


working front. Station – 7. Clause 10.7 of General
4. Delay due to non- 31.05.2012. Conditions of Contract:
release of various long- Extension of Time for
overdue legitimate Completion not on Contractor’s
payments. fault
5. Delay due to non- 8. Clause 12.1 of General
availability of KMRCL Conditions of Contract:
approval for proposed Authority to order
enhancement in 9. Clause 12.2 of General
Contract value. Conditions of Contract
6. Miscellaneous 10. Clause 19 of General
stoppages Conditions of Contract: Force
Majeure.

Final 1. Delayed instruction for 31 days for the Up to 31.05.2012 1. Clause 10.6 of General
EOT construction of ASS/ entire work Conditions of Contract.
TSS building at Central 2. Clause 10.7 of General
Park station after Conditions of Contract:
demobilization of Extension of Time for
resources from site. Completion not on Contractor’s
2. Delay in handing over fault.
of AFC drawing for 3. Clause 12.1 of General
ASS/ TSS building at Conditions of Contract:
Central Park station. Authority to order.
4. Clause 12.2 of General
Conditions of Contract.
5. Clause 4.19 of General
Condition of Contract.

As a sequel to such extensions for reasons attributable to the

Respondent, the Claimant vide its letter dated 11-01-2013 (Copy

annexed and marked “C-34” at page no. 276 of volume no III)

had submitted the application containing details of various claims,

quantifications of such claims and the documents relied upon (302

pages) and called upon the Respondent for payment of the amounts

due to the Claimant.


~ 49 ~

18. The Respondent vide its letter dated 29-06-2013 (Copy annexed

and marked “C-35” at page no. 279 of volume no III) had disputed

the claims on some untenable grounds. The said letter was

categorically replied vide Claimant’s letter dated 08-07-2013 (Copy

annexed and marked “C-36” at page no. 282 of volume no III). The

Respondent thereafter had suggested for resolving the disputes by

conciliation.

19. That the Claimant vide letter dated 24-02-2014 (Copy annexed

and marked “C-37 ” at page no. 287 of volume no III) had submitted

the analysis break up for updated claims to the Conciliator. Finally, the

parties decided to dissolve the conciliation process and competent

authority of the Respondent vide letter 09-06-2015 (Copy annexed

and marked “C-38” at page no. 345 of volume no III) had confirmed

dissolving of conciliation process.

20. Disputes and differences had arisen between the parties in

respect of the following claims which are required to be adjudicated by

the Learned A.T.


~ 50 ~

Summary of applications
Sl. No. Description Claim amount Detailed
(Rs.) Calculation
1 Uncharted overhead cost on a/c of 77,848,210 Exhibit-I
over stay at site resulting due to (modified claim
reasons not attributable to the amt =
Contractor 2,68,65,417/-
2 Interest charges on delayed 31,776,172 Exhibit-II/1/R
payment against various withheld (modified claim
and outstanding amount as of 15th amt =
January'2014. 34,577,135)
3 Additional cost incurred, on a/c of 11,687,077 Exhibit-III
idling and/ or gross underutilization
of piling setup
4 Uncharted overhead cost incurred 2,187,899 Exhibit-IV
on a/c of frequent shifting of piling
setup due to reasons not
attributable to the Contractor
5 Additional mobilization of shuttering 9,533,654 Exhibit-V
and staging material due to change
in sequence of work
6 Extra cost incurred on account of 3,029,819 Exhibit-VI
maintenance & handling of
barricading boards beyond the
original completion period
7 Extra cost incurred towards 8,802,226 Exhibit-VII
fabrication, driving & retrieval of
additionally mobilized sheet pile
materials to facilitate construction of
pile caps inside the E.D. Canal at
Sector-V station
8 Extra cost incurred due to lesser 279,434 Exhibit-VIII
number of repetition of pier shutter

9 Reimbursement of extra cost on 1,785,116 Exhibit-IX


cement procurement due to
increase in railway freight
10 Extra cost incurred on account of 94,395 Exhibit-X
increase in Excise Duty

11 Extra cost incurred on account of 17,027 Exhibit-XI


introduction of entry tax w.e.f. 01st
Apr.’2012
12 Claim for reimbursement of extra 5,884,080 Exhibit-XII
cost incurred on procurement of
aggregate during extended stay
~ 51 ~

13 Claim for reimbursement of extra 1,972,748 Exhibit-XIII


cost incurred on procurement of
aggregate during original completion
period
14 Loss of profit and unrecovered 23,234,679 Exhibit-XIV
corporate overhead on a/c of loss of (modified claim
opportunity during extended stay at amount
site 4,24,73,904.00
15 Grand Total 178,132,536  
(modified claim
amt = Rs.
14,91,89,931/-
)

21.1 Claim No. 1 - Uncharted overhead cost on a/c of over stay at

site resulting due to reasons not attributable to the Claimant = Rs.

7,78,48,210.00

21.1.1 The Claimant is entitled to and claims a sum of Rs.

2,68,65,417.00 (Rupees to crores sixty eight lac sixty five thousand

four hundred and seventeen only) being the expenses incurred on

unchartered overhead cost owing to over stay at site for reasons

attributable to the Respondent.

21.1.2 The Claimant had submitted the details of its claim in a

compilation marked Exhibit – I enclosed to Claimant’s letter dated 24-

02-2014 (C-37) before the Conciliator. It shall appear from page 295 of

volume III that the computation has been made for both the packages

i.e. EWS – 1 (R) and EWS – 2 (R) and the Claimant had claimed for this
~ 52 ~

package i.e. EWS – 1 (R) proportionate overhead cost based on the

value of work done under the package with respect to total value of

work done for both the packages during the extended stay. The

Claimant craves to explain vividly the said computations during the

course of arbitration sittings to follow. During review of the

computation, the Claimant observed that during the extended period

the Claimant had executed extra quantum of works valuing Rs.

(76,16,24,737 minus 53,09,23,842) i.e. Rs. 23,07,00,895.00. The value

of work done in the extended period including value of additional

quantum of work (Rs. 23,07,00,895.00), was for Rs.

35,22,45,769/-. Therefore, the value of extra work is 65.49% of the

value of work done in the extended period. The Claimant could realize

the cost of overhead which is inbuilt in the said cost of Rs.

23,07,00,895.00 to the tune of 65.49% of the value of actual overhead

cost incurred in the extended period i.e. Rs. (65.49% of 7,78,48,210) =

Rs. 5,09,82,793.00. The said amount of Rs. 5,09,82.793.00 should be

set off from the amount claimed earlier and the modified / reduced

amount of claim stands at Rs. (7,78,48,210 minus 5,09,82,793) i.e. Rs,

2,68,65,417/-.
~ 53 ~

21.1.3 In accordance with the provisions of Contract, the

Claimant was required to prepare a detailed programme of work so as

to achieve the target dates of various activities and submit to the

Respondent’s Engineer within 28 days of receipt of Letter of Acceptance

(in short ‘LOA’) dated 23-05-2009 (C-4). Accordingly, the Claimant had

submitted the Work Program having profound regards to the agreed

fact situation at the material time of entering into the contract,

envisaging achievement of project completion by 20 months reckoned

from the date of issuance of the LOA. The Claimant had specifically

construed that in order to enable the Claimant to complete the works

within the stipulated period of 20 months, reciprocal promises such as

timely handing over of the possession of obstruction free site, timely

issuance of AFC drawings, timely release of payment against various

certified invoices, providing area for Contractor’s Depot, etc, should be

arduously observed by the Respondent.

21.1.4 The Claimant dismally observed after commencement of

the works, that the said baseline program was adversely affected and

utterly frustrated by many a hindrance and impediments beyond all the

effective control of the Claimant and extension of time for completion

was necessitated for reasons attributable to the Respondent. As an


~ 54 ~

impact of the change in the agreed fact situation for turn of events

during the execution of work, the Claimant was exposed to serious

losses and injuries on divers accounts. The effects of these

impediment/hindrances were brought to the notice of the Respondent

from time to time. Many of these delay events & circumstances were

continuing in nature, thereby making further reduction in the

anticipated progress of works, loss in productivity. This necessitated

revisions of completion schedules time and again at the peril of the

Claimant, factual matrix whereof is set out in a compilation spelt out in

paragraph no. 17 hereinabove.

21.1.5 The Claimant craves to rely inter alia on the following

documents

a) Claimant’s letter dated 24-02-2014 (C-37);

b) Exhibit –I (details of plant and machinery cost at page no.

291 of volume III of C-37);

21.1.6 The Claimant respectfully prays that the Learned A.T. may

be pleased to award a sum of Rs. 2,68,65,417.00 ((Rupees two crore


~ 55 ~

sixty eight lac sixty five thousand four hundred and seventeen only) as

per Claim No. 1.

21.2 Claim No. 2 - Interest charges on delayed payment against

various withheld and outstanding amount as of 15th January'2014

= Rs. 3,43,09,552.00 (Claim amount updated up to 10-12-2015)

21.2.1 The Claimant is entitled to and claims interest on

withheld / outstanding payments due to the Claimant as S.B.I.

Benchmark prime lending rate of interest amounting to Rs.

3,43,09,552.00. The amount claimed earlier was evaluated up to 15 th

January, 2014 and the said calculation is updated for claiming interest

till 10th December, 2015 and the updated claim amount is Rs.

3,43,09,552.00. The details of the original claim are set out in a

compilation marked as Exhibit – II at page 297 of volume III),

enclosed to Claimant’s letter dated 24-02-2014 (C-37). Details of

updated claim is set out in a compilation annexed herewith and

marked as Exhibit II/1/R (Page 90 of Volume I). The S.B.I.

Benchmark prime lending rate of interest, as downloaded from S.B.I.

corporate web site is annexed hereto and marked as Exhibit – II/1.

The Claimant updated Exhibit – II by deleting the interest amount due

for reimbursement of W.B. VAT amount and interest calculated on


~ 56 ~

outstanding amount against W. B. VAT separately and submitted to the

Respondent vide Claimant’s letter dated 10-12-2015 (copy annexed

and marked C-39 at page no. 346 of volume III). The Claimant

craves to elaborate the said computations during the course of

arbitration sittings to follow.

21.2.2 Sub-clause 15.4.1 (b) & (c) of the agreement, categorically

stipulates that after preliminary scrutiny and certification by the

Respondent’s Engineer, payment of 80% of the certified amount shall

be made by the Respondent within 7 days and the balance 20% of the

certified value of work done shall be paid within 28 days from the date

of preliminary certification of bill by the Respondent’s Engineer.

21.2.3 Clause 22.1.2 of SCC stipulates that the payments against

escalation bills shall also be made within 28 days from the date of

preliminary certification by the Engineer, as far as possible.

21.2.4 Time and again the Claimant had put the Respondent on

notice for claiming interest on delayed release of outstanding /withheld

amounts, as per the details of such notices spelt out hereunder:-


~ 57 ~

a) Claimant’s letter dated 29-11-2010;

b) Claimant’s letter dated 05-01-2011;

c) Claimant’s letter dated 13-01-2011;

d) Claimant’s letter dated 22-02-2011;

e) Claimant’s letter dated 12-04-2011;

f) Claimant’s letter dated 18-05-2011;

g) Claimant’s letter dated 03-06-2011;

h) Claimant’s letter dated 04-06-2011;

i) Claimant’s letter dated 09-06-2011;

j) Claimant’s letter dated 07-07-2011;

k) Claimant’s letter dated 03-08-2011;

l) Claimant’s letter dated 15-10-2011;

m) Claimant’s letter dated 14-11-2011;

n) Claimant’s letter dated 10-02-2012;

o) Claimant’s letter dated 15-03-2012;


~ 58 ~

p) Claimant’s letter dated 06-08-2012;

(copies annexed and collectively markd as C-40 at page no. 351 of

volume III)

21.2.5 The Claimant had emphasized that without timely and regular

payments, the planned progress of work should suffer adversely since

the Claimant should not be able to plough back its working capital for

expediting further mobilization of resources. More so, for blockage of

working capital, the Claimant should not be in a position to keep its

financial commitments to its suppliers and creditors and thereby the

Claimant should lose its creditability in the borrowing market and the

same shall in turn throttle the progress of work by retarding the

mobilization of materials for the work.

21.2.6 The delay in releasing the payment was primarily due to the long

stretched system of bill checking, processing and release of payment

adopted by the Respondent. Besides, Respondent’s accounts

department used to put forth several observations and/or comments

against various technical issues, which were beyond the ambit of the

contract and the said observations and/or comments, would have


~ 59 ~

invariably been raised just 1-2 days prior to the stipulated date of

release of 20% payment by KMRCL.

21.2.7 In view of factual positions and the contractual provisions

narrated hereinbefore, it is needless to mention that the Respondent

had made itself liable to pay interest to the Claimant and the Claimant

respectfully prays the learned AT may be pleased to award the said

sum of Rs. 3,43,09,552.00.

21.3 Claim No. 3 - Additional cost incurred, on account of idling

and/ or gross underutilization of piling setup = Rs. 1.16,87,077.00

21.3.1 The Claimant is entitled to and claims a sum of Rs.

1,16,87,077.00 (Rupees one crore sixteen lac eighty seven thousand

and seventy seven only) being the expenses incurred on unchartered

overhead cost owing to over stay at site for idle and underutilized

piling setup mobilized for the work consequent upon the delays and

defaults on the part of the Respondent.

21.3.2 The details of this claim are set out in a compilation

marked as Exhibit – III, enclosed to Claimant’s letter dated 24-02-


~ 60 ~

2014 (C-37). Graphical representation of the available working days,

delay days and movement of hydraulic piling rig is made for better

appreciation of this claim, which is marked as Exhibit-IIIA, enclosed to

Claimant’s letter dated 24-02-2014 (C-37). It shall be evident from the

said graphical representation that the Claimant earnestly endeavoured

to mitigate its losses and injuries by repositioning the piling rig on

repeated occasions.

21.3.3 The Claimant craves to rely inter alia on the following

contemporaneous correspondence:-

a) Claimant’s letter dated 06-11-2009;

b) Claimant’s letter dated 23-12-2009;

c) Claimant’s letter dated 22-04-2010;

d) Claimant’s letter dated 11-09-2010;

e) Claimant’s letter dated 01-10-2010;

f) Claimant’s letter dated 18-10-2010;

g) Claimant’s letter dated 01-12-2010;

h) Claimant’s letter dated 15-12-2010;


~ 61 ~

i) Claimant’s letter dated 19-08-2011;

j) Claimant’s letter dated 10-09-2011;

k) Claimant’s letter dated 07-11-2011;

(copies annexed and collectively marked as C-41 at page no. 435 of

volume III)

21.3.4 As submitted in paragraphs 9 (C), 9 (D) and 21.1,

hereinbefore, the Claimant had envisaged receipt of the AFC drawings

for pile(s) by 10th June, 2009 complying with the baseline programme.

However, AFC drawing for first initial load test pile was issued by the

Respondent as late as on 14th September, 2009 followed by issuance of

first set of AFC drawing for working piles for Central Park on 31st

December, 2009. In this connection, the Claimant craves to invite

attention of the Learned A.T. to its letters dated 13-10-2009 (C-13

colly) and 29-10-2009 (C-14 colly), through which the Claimant had

recorded the initial duration of idling of piling set up for the non-

availability of AFC drawing for working piles. The initial delay in

issuance of AFC drawings for working piles were followed by further

delay in issuance of AFC drawings for all the station locations and the

said AFC drawings were also issued to the Claimant in piece-meal basis
~ 62 ~

leading to idling and/or underutilization of costly piling set up

mobilized at site. For the non-availability of encroachment and/or

obstruction free piling front at various station locations, the piling set

up of the Claimant had remained idle at site for prolonged period and

the same was notified to the Respondent and its General Consultant

from time to time through a plethora of contemporaneous as already

referred to hereinbefore. Nonetheless, to mitigate losses and injuries

for idling of piling set up the Claimant had to resort to frequent shifting

of its piling set up from one station location to another.

21.3.5 It is abundantly clear that the Claimant’s piling set up was

idle for 172 available rig-days i.e. 5.73 available rig-months owing to

the reasons attributable to the Respondent.

21.3.6 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. Rs. 1,16,87,077.00 (Rupees

one crore sixteen lac eighty seven thousand and seventy seven only).
~ 63 ~

21.4 Claim No. 4 - Uncharted overhead cost incurred on account

of frequent shifting of piling setup owing to reasons attributable to

the Respondent = Rs. 21,87.899.00

21.1.4 The Claimant is entitled to and claims a sum of Rs.

21,87,899.00 (Rupees twenty one lac eighty seven thousand eight

hundred and ninety nine only) towards uncharted overhead cost

incurred on account of frequent shifting of piling setup owing to

reasons attributable to the Respondent.

21.1.5 While preparing the said baseline work programme, the

Claimant had envisaged mobilization of 2 nos. hydraulic rotary piling

rigs one each at any of the two station locations and such rigs shall

start installation of working piles for two locations with effect from 09-

09-2009 initially, followed by deployment of one more rig in the third

station location for commencement of installation of working piles on

11-12-2009. It shall appear from Exhibit IV annexed to the letter dated

24-02-2014 (C-37) that there were as many as eight nos. of

infructuous shifting of piling rigs from different locations, owing to non-

availability of piling work front. In this regard the Claimant craves to

elaborate further relying on the said Exhibit IV and Exhibit IV A

(being a line diagram depicting available working days, delay days and
~ 64 ~

movement of piling rig.) annexed to the letter dated 24-02-2014 (C-37).

The Claimant further submits a compilation (annexed and marked

Exhibit – IV B at page no. 95 of volume I), demonstrating the

justification of such additional movement of piling rigs.

21.1.6 To avoid prolixity and to make submissions brief, the

Claimant craves to repeat and reiterate the irrefutable factual positions

submitted in the foregoing paragraphs dealing with claim no. 3.

21.4.1 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. 21,87,899.00 (Rupees twenty

one lac eighty seven thousand eight hundred and ninety nine only).

21.5 Claim No. 5 - Additional mobilization of shuttering and

staging material owing to change in sequence of work =

Rs.95,33,654.

21.5.1 The Claimant is entitled to and claims a sum of Rs.

95,33,654 (ninety five lac thirty three thousand six hundred and

fifty four only) towards additional mobilization of shuttering and


~ 65 ~

staging material owing to change in sequence of work. The Claimant

craves to rely on the compilation marked as Exhibit V annexed to the

letter dated 24-02-2014 (C-37). The Claimant craves to explain vividly

the aid Exhibit V during the course of arbitration sittings to follow.

21.5.2 The Claimant relies on the baseline work programme

wherefrom, it appears that superstructure works was programmed to

be commenced from 05-12-2009 for Station-1 & 2 with targeted

completion on 02-10-2010. Superstructure works for station no. 3

under this contract was planned to be commenced from 09-03-2010. It

is needless to submit that this programme was drawn to suit the

agreed fact situation and in particular stipulated period of 20 months.

It is irrefutable that the Respondent couldn’t issue the drawings in a

logical sequence commensurate the baseline programme. Further, the

encroachment free working areas had not been handed over as per the

requirement of the baseline programme. The said baseline programme

was virtually frustrated for a number of hindrances which were

communicated to the Respondent from time to time. The Claimant was

constrained to wait aimlessly for the availability of drawings and

encroachment/ obstruction free work site and to mitigate further loss

of time, the Claimant had to mobilize additional sets of staging and


~ 66 ~

shuttering materials to carry out the works at different station

locations. It is needless to mention that the use of staging and

shuttering materials couldn’t be optimized. By no stretch of

imagination, the Claimant could contemplate such an unassailable

situation arising out of the delays and defaults of the Respondent and

the Respondent thereby had made itself liable to compensate the

Claimant for all its losses and injuries. It is irrefutable that the

Claimant could commence the superstructure work at Central Park

Station in the month of August, 2010 and completed in the month of

July, 2011. Accordingly, the commencement and completion months of

concreting for superstructures (from concourse level to platform level)

at Sector-V and Karunamoyee Stations were delayed till January, 2011

& April, 2012 and October, 2010 & August, 2011 respectively. From

this, it is evident that, the work for superstructures at all the

three stations went on simultaneously entailing mobilization of

additional shuttering and staging materials. The commencement of

superstructure work, in the form of concourse level slabs and beams

got delayed inordinately, owing to delayed receipt of

encroachment/obstruction free site for piles on either side of the

central median at each of the station locations. For such additional

mobilization of shuttering and staging materials, the Claimant had


~ 67 ~

perforce to incur additional cost which was not envisaged during tender

stage.

21.5.3 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. 95,33,654 (ninety five lac thirty

three thousand six hundred and fifty four only).

21.6 Claim No. 6 - Extra cost incurred on account of maintenance

& handling of barricading boards beyond the stipulated completion

period = Rs.30,29,819.

21.6.1 The Claimant is entitled to and claims a sum of Rs.

30,29,819.00 (Rupees thirty lac twenty none thousand eight hundred

and nineteen only) being the extra cost incurred on account of

maintenance & handling of barricading boards beyond the stipulated

completion period. The Claimant craves to rely on the compilation

marked as Exhibit VI annexed to the letter dated 24-02-2014 (C-37).

The Claimant craves to elaborate the said Exhibit VI during the course

of arbitration sittings to follow for better appreciation for this claim.


~ 68 ~

21.6.2 Clause 1.6 of S.01 of Structural Specifications, Vol-2 of the

contract mandates the Claimant to provide and maintain the

barricading boards during the execution of the works. The project

completion period was extended for 16 months beyond the original

completion period. During this extended period of completion, the

Claimant had to maintain the barricading boards. Pursuant to BOQ

item no. G) Miscellaneous Items 6 of Schedule-A, the Claimant had

envisaged the maintenance of barricading boards only during the

stipulated completion period i.e. 20 months. Accordingly the bid was

priced at the time of submission of tender. The Claimant had to incur

additional cost for maintenance and several handling of the said

barricading boards during the extended period. The Claimant was

required to transport the barricading boards at different locations on

repeated occasions. In this respect the Claimant relies on its letter

dated 31-08-2012 (copy annexed and marked C-42 at page no 453

of volume III). The Respondent did not dispute the factual positions

recorded in the said letter dated 31-08-2012 (C - 42)


~ 69 ~

21.6.3 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. 30,29,819.00 (Rupees thirty

lac twenty none thousand eight hundred and nineteen only).

22.7 Claim No. 7 - Extra cost incurred towards fabrication, driving

& retrieval of additionally mobilized sheet pile materials to

facilitate construction of pile caps inside the Eastern Drainage (in

short ‘E.D.’) Canal at Sector-V station = Rs.88.02,226.

22.7.1 The Claimant is entitled to and claims a sum of

Rs.88,02,226 (Rupees eighty eight lac two thousand to hundred and

twenty six only) being the extra cost incurred towards fabrication,

driving & retrieval of additionally mobilized sheet pile materials to

facilitate construction of pile caps inside the E.D. Canal at Sector-V

station. The Claimant craves to rely on the compilation marked as

Exhibit VII annexed to the letter dated 24-02-2014 (C-37). The

Claimant craves to vividly explain the said Exhibit VII during the

course of arbitration sittings to follow.


~ 70 ~

22.7.2 As ascertained from the provisions of tender documents,

procurement of only 24 RM of sheet piles were required to facilitate

construction of 6 nos. smaller sized pile caps over 6 Nos. Pile groups

with each of the groups comprising of 3-4 Nos. of piles, inside E.D.

Canal at the proposed Sector-V station.

22.7.3 The Claimant had to construct 22 Nos. gigantic pile caps,

as per AFC drawings issued by the Respondent, over a total number of

131 piles with the largest group consisting of as many as 20 Nos. piles

inside E.D. canal area. This involved the works viz. casting, de-

shuttering and de-staging of entire concourse slab prior to the onset of

monsoon. Consequently, the Claimant had to procure a total quantum

equivalent to 244 RM of sheet piling materials instead of 122 RM as

ascertained from the tender document.

22.7.4 Subsequent to financial approval of additional cost towards

mobilization of additional sheet pile materials by the Respondent, the

Claimant had mobilized the said quantum of sheet pile materials with a

view to completing the construction up to concourse slab over E.D.

Canal prior to onset of the monsoon of 2011.


~ 71 ~

22.7.5 In order to put those additional sheet pile materials in use

and make fit for requirement, the Claimant had to fabricate and drive

the sheet piles to facilitate construction of pile caps below canal bed

level and subsequently, the Claimant had to retrieve those additionally

mobilized sheet pile materials upon completion of sub-structure work

and these sub-activities had involved further additional cost.

22.7.6 In this regard the Claimant craves to rely on its following

letters:-

a) dated 28-04-2011;

b) dated 03-05-2011;

c) dated 10-05-2011.

(copies annexed and collectively marked C-43 at page no. 454 of

volume III)

22.7.7 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs.88,02,226 (Rupees eighty eight

lac two thousand to hundred and twenty six only).


~ 72 ~

22.8 Claim No. 8 - Extra cost incurred owing to lesser number of

repetition of pier shutter = Rs. 2,79,434

22.8.1 The Claimant is entitled to and claims a sum of Rs.

2,79,434/- (Rupees two lac seventy nine thousand four hundred and

thirty four only) being the extra cost incurred owing to lesser number of

repetition of pier shutter. The Claimant craves to rely on the

compilation marked as Exhibit VIII annexed to the letter dated 24-02-

2014 (C-37). The Claimant craves to vividly explain the said Exhibit

VIII during the course of arbitration sittings to follow.

22.8.2 The tender drawings stipulated that there would be

maximum two types of circular piers for the subject work i.e. one type

for piers on central median and another type for piers on either side of

the station building. However, during execution, the AFC drawings

supplied by the Respondent provided circular and D-shaped expansion

joint piers of diameters 1800 mm, 1600 mm, 1400 mm and 1000 mm.

It is needless to mention that such subsequent change in shape of pier

resulted in significant reduction of repetitions in pier shutter from 40


~ 73 ~

nos. of uses prescribed as per Sl. No. 9.4 of preface of DSR, 2007

(copy annexed and marked C- 44 at page no. 479 of volume III).

22.8.3 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. 2,79,434/- (Rupees two lac

seventy nine thousand four hundred and thirty four only).

22.9 Claim No. 9 - Reimbursement of extra cost on cement

procurement due to increase in railway freight = Rs. 17,85,116

22.9.1 The Claimant is entitled to and claims a sum of Rs.

17,85,116.00 (Rupees seventeen lac eighty five thousand one hundred

and sixteen only). The Claimant craves to rely on the compilation

marked as Exhibit IX annexed to the letter dated 24-02-2014 (C-37).

The Claimant craves to vividly explain the said Exhibit IX during the

course of arbitration sittings to follow.

22.9.2 The Claimant used to procure cement from Cossipore stock

yard for the work. It is submitted that cement was transported from

Raipur plant to Cossipore stock yard in railway wagon and the

corresponding rail distance between these two points stands at 858.43


~ 74 ~

Km. Indian Railways had increased the railway freight w.e.f. 27th

December, 2010 and the rate was increased from Rs.783.00/MT to

Rs.814.40/Mt for the above rail distance. This rate was once again

hiked w.e.f. 06th March, 2012 and it was increased to Rs.1003.40/MT

from Rs.814.40/MT. the Claimant craves to rely on “I.R.C.A., Goods

Tariff No. 46 Pt. I (volume II)” (copy annexed and marked C - 45 at

page no. 481 of volume III) It may be appreciated that this increase

in railway freight got added to the cost of cement procurement thereby

imposing additional financial burden on the Claimant.

22.9.3 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. 17,85,116.00 (Rupees

seventeen lac eighty five thousand one hundred and sixteen only).

22.10 Claim No. 10 - Extra cost incurred on account of increase in

Excise Duty = Rs. 94,395.

22.10.1 The Claimant is entitled to and claims a sum of Rs.

94,395/- (Rupees ninety four thousand three hundred and ninety five

only) towards extra cost incurred on account of increase in Excise


~ 75 ~

Duty. The Claimant craves to rely on the compilation marked as

Exhibit X annexed to the letter dated 24-02-2014 (C-37).

22.10.2 There had been a number of amendments in various

existing taxes and duties by the Government of India during the course

of execution of the work. Excise duty on ready mix concrete (RMC) was

nil up to February‘2011. From 01-03-2011, Excise duty (including

Education Cess) of 1.03 % on ready mix concrete was introduced by the

Government of India vide Notification no. 1/2011-Central Excise dated

01-03-2011.

22.10.3 Subsequently, vide notification no. 16/2012-Central

Excise, with effect from 17-03-2012, Excise duty on RMC was

increased to 2.06% (including Education Cess).

22.10.4 Excise duty on all types of construction materials was

increased from 10.3% (including Education Cess) to 12.36% (including

Education Cess) vide notification no. 18/2012-Central Excise with

effect from 17-03-2012.


~ 76 ~

Copies of the notifications dated 01-03-2011 and 17-03-2012 are

annexed hereto and collectively marked as C- 46 at page no. 495 of

volume III).

22.10.5 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. 94,395/- (Rupees ninety four

thousand three hundred and ninety five only).

22.11Claim No. 11 - Extra cost incurred on account of

introduction of entry tax w.e.f. 01st Apr.’2012 = Rs. 17,027.00

22.11.1 The Claimant is entitled to and claims a sum of Rs.

17,027.00 (Rupees seventeen thousand and twenty seven only). The

Claimant craves to rely on the compilation marked as Exhibit XI

annexed to the letter dated 24-02-2014 (C-37).

22.11.2 The stipulated date of completion of the work was 22-01-

2011. That notwithstanding the position that the Claimant was

otherwise ready, willing, agreeable and competent to complete the


~ 77 ~

work, in its entirety, within the stipulated period of completion, the

execution of work had continued inordinately beyond the stipulated

date of completion, grossly on account of delays and defaults on the

part of the Respondent and the work was completed in all respects by

31-05-2012. Vide Gazette Notification dated 31-03-2012 (copy

annexed and marked C - 47 at page no. 509 of volume III), the

Government of West Bengal had introduced Entry Tax. Such tax was

applicable for almost all the construction materials at the relevant time.

The introduction of this new tax was an additional financial burden on

the Claimant.

22.11.3 In this regard the Claimant relies on Clause 13 of Special

Conditions of Contract and the relevant provision of contract is quoted

hereunder:-

“1. any new tax which is imposed after the due date of submission of
tender and which impacts the performance of the Contractor with
increased cost or which results in extra financial gains to the Contractor
due to decreased cost in execution of Works

2. Change in any law pertaining to work having the above said impact”
~ 78 ~

Then such additional or reduced cost shall be certified by the Engineer


after examining records provided by the Contractor and shall be paid by
or credited to the Employer”

22.11.4 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. 17,027.00 (Rupees seventeen

thousand and twenty seven only).

22.12Claim No. 12 - Claim for reimbursement of extra cost

incurred on procurement of aggregate during extended stay = Rs.

58,84,080.00

22.12.1 The Claimant is entitled to and claims a sum of Rs.

58,84,080.00 (Rupees fifty eight lac eighty four thousand and eighty

only). for reimbursement of extra cost incurred on procurement of

aggregate during extended period of completion. The Claimant craves to

rely on the compilation marked as Exhibit XII annexed to the letter

dated 24-02-2014 (C-37).

22.12.2 Clause 13.2 of GCC of the contract agreement, stipulates

that “To the extent that full compensation for any rise or fall in costs to
~ 79 ~

the Contractor is not covered by the price variation formula, the rates in

the accepted Bill of Quantities shall be deemed to include amounts to

cover the contingency of such rise of costs.”

22.12.3 It is well settled that ordinarily the parties would be bound

by the terms of the contract, but in the event one of the parties to the

contract is unable to fulfill its obligations under the contract, which

has a direct bearing on the work to be executed by the other party, the

Learned A.T. is vested with the authority to compensate the second

party for the extra costs incurred by him as a result of failure of the

first party to live up to its obligations. It is needless to mention that the

Claimant had never agreed to bound itself in a fundamentally different

situation which unexpectedly arouse by the turn of events consequent

upon the delays and defaults on the part of the Respondent. The

learned A.T. may kindly appreciate that the instant contract had

suffered an inordinate delay for a period of more than 16 months owing

to various reasons not attributable to the Claimant. Hike in unit cost of

any major input concrete material, which couldn’t be contemplated by

the Claimant while structuring the rates for submission of tender,

should be compensated.
~ 80 ~

22.12.4 In this connection, the Claimant craves to draw the kind

attention of the Learned A.T. to its letter dated 21-10-2010, wherein

the Claimant had put the Respondent on notice that supply of coarse

aggregate at site continued to be a perpetual problem for execution of

the work. As such, the Claimant was compelled to procure aggregates

from local suppliers at fancy price. While finalizing the price of the

tender for the said contract during the month of Mar-Apr.’2009, the

Claimant had considered the unit rates of Rs.1350.00 & Rs.1200.00

per cum against 20mm and 10mm down coarse aggregates

respectively. However, from the actual cost of procurement of 20 mm

and 10 mm down coarse aggregates, during the extended period of the

contract the Claimant had to purchase the said aggregates at average

price of Rs.1827.55 & Rs.1492.06 per cum respectively as per the

delays submitted hereunder:-

Type of Quantity (cum) Cost of purchase Average rate


aggregate
(Rs.)

10mm 15410.253 2,29,93,076.76 1827.55

20 mm 16062.399 2,93,54,841.77 1492.06


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The foresaid figures have been extracted from Claimant’s accounts

(ERP), maintained in the usual course of business and a copy of the

relevant portion of ERP is annexed hereto.

22.12.5 In this regard the Claimant refers to the following letters:-

a) Claimant’s letter dated 05-06-2010;

b) Claimant’s letter dated 14-06-2010;

c) Claimant’s letter dated 21-10-2010;

d) Claimant’s letter dated 05-02-2011;

e) Claimant’s letter dated 27-05-2011;

f) Extract from ERP.

(copies annexed and collectively marked C - 48 at page no. 521 of

volume III)

22.12.6 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of Rs. 58,84,080.00 (Rupees fifty

eight lac eighty four thousand and eighty only).


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22.13 Claim No. 13 - Claim for reimbursement of extra cost

incurred on procurement of aggregate during original completion

period = Rs. 19,72,748.

22.13.1 The Claimant is entitled to and claims a sum of Rs.

19,72,748 (Rupees nineteen lac seventy two thousand seven hundred

and forty eight only) for reimbursement of extra cost incurred on

procurement of aggregate during original completion period. The

Claimant craves to rely on the compilation marked as Exhibit XIII

annexed to the letter dated 24-02-2014 (C-37).

22.13.2 To avoid prolixity and to make submissions brief, the

Claimant begs to repeat and reiterate the submissions made while

dealing with Claim No. 12 hereinbefore. Vide letter dated 21-10-2010

(C-37 colly), the Claimant inter alia had brought to the notice of the

Respondent the unprecedented crisis of availability of aggregates which

resulted in stoppage of production of aggregates in the prominent

quarries/crusher plants in and around West Bengal in the month of

April-May’2010. These unforeseen circumstances prompted the local

suppliers to take advantage of the situation by stopping the supply of

aggregates at site with an attempt to hike the prices of aggregates and

this has been a thoroughly unforeseen event.


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22.13.3 The Claimant respectfully prays that the Learned A.T. may

be pleased to award the said sum of 19,72,748 (Rupees nineteen lac

seventy two thousand seven hundred and forty eight only).

22.14 Claim No. 14 - Loss of profit and unrecovered corporate

overhead on a/c of loss of opportunity during extended stay at site =

Rs. 4,24,73,904.00

22.14.1 The Claimant is entitled to and claims a sum of Rs.

4,24,73,904.00 (Rupees four crore twenty four lac seventy four

thousand nine hundred and four only) for Loss of profit and unrecovered

corporate overhead on a/c of loss of opportunity during extended stay at site.

The details for arriving at the claim amount are spelt out hereunder:-

Description Value (Rs.)

Contractual value of work----(A) 53,09,23,842.00

Stipulated period of completion—(B) 20 months

Average turnover per month on no hindrance 2,65,46,192.00


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basis----------(C=A/B)

Average profit which could have been earned 26,54,619.00

on no hindrance basis per month @ 10% on

turn over------(D=10% of C)

Extended period------------------E 16 months

Loss of profit earning capacity--------(F=D X E) 4,24,73,904.00

22.14.2 As per Contract, the Claimant had contemplated to

complete the work within the stipulated time frame of 20 months on no

hindrance basis and accordingly had planned and mobilized all the

requisite resources at site. Notwithstanding the position that the

Claimant was otherwise ready, willing, agreeable and competent to

complete the work, in its entirety, within the stipulated period of

completion, the execution of work had continued inordinately beyond

the stipulated date of completion, grossly on account of delays and

defaults on the part of the Respondent and the work was completed in

all respects by 31-05-2012 i.e. with a delay of 16 months beyond the

stipulated period of completion. Owing to inordinate overstay at site,


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attributable to the Respondent, as have been deliberated in other

applications, the Claimant had lost the opportunity to deploy its

resources retained for this project in the extended period, to other

projects and/or to fulfill other commitments thereby losing the

opportunity to work somewhere else which would have earned

reasonable profit

22.14.3 The Claimant respectfully submits that inasmuch as

Claimant’s resources were retained for an additional period of 16

months, beyond the stipulated date of completion, the Claimant could

not offer competitive price, since the Claimant structured its bid relying

on hired resources. For instance, the Claimant participated in the

tenders which were invited by RVNL vide notice dated 27-06-2011 for

execution of work packages ANV1, ANV2, ANV3 and ANV4 relating to

construction of viaduct works for New Garia – Airport corridor of

Kolkata Metro Railway Line. Tenders were submitted by the Claimant

on 17-08-2011 based on hired resources and the Claimant was

unsuccessful. It can be recalled that the date stipulated for completion

was 22-01-2011. The Claimant craves to disclose herewith the copy of

tender notice issued on 27-06-2011 relating to the above referred

works and copy of forwarding letter dated 17-08-2011 with which the
~ 86 ~

Claimant had submitted its tenders and those are collectively marked

C-49 at page no. 553 of volume III.

23 CLAIM NO. 15 – Claim for interest at the rate of 18% per

annum on the amounts payable under claim nos. 1 to 14 (i.e. on

Rs. 14,91,89,931/-) with effect from 23-09-2015 to the date of

payment of the said sums in full and at the rate of Rs 18% as to be

accrued.

24 The Claimant is entitled to and claims interest at the rate of 18%

per annum on the amounts as claimed under claim nos. 1 to 11 with

effect from 23-09-2015 i.e. the date of constitution of the

Learnned A.T. to the date of full realization of the said amount. The

Learned A.T. is empowered to award such interest by virtue of the

power conferred under section 31(7) of the Arbitration and Conciliation

Act, 1996.

CLAIM NO. 16 – Claim for cost of Arbitration.


~ 87 ~

25 As the Respondent unnecessarily dragged the Claimant into

litigation for no fault of the Claimant, the Respondent is liable to pay

the cost of Arbitration Proceedings, details of which shall be submitted

by the Claimant on the concluding day of the arbitration sittings and

the Learned Tribunal may be pleased to award such costs of Arbitration

Proceedings to the Claimant.

Documents sought for disclosure

26 The Respondent at all relevant point of time and still is in

possession of the original estimate and other papers and documents

related to tendering process. The Claimant hereby calls upon the

Respondent to certify, bring files and disclose before the Learned

Tribunal the aforesaid Notice-Inviting-Tender, different contract

conditions made part of the tender and subsequently made part of the

contract through letter of acceptance and schedule of rates on the basis

of which the said tender was invited and all other relevant documents

in the possession of the Respondent required for adjudication of the

claims of the Claimant.


~ 88 ~

In the facts and circumstances as brought out hereinbefore, the

Claimant humbly prays before the Learned Arbitral Tribunal for the

following:-

That the Learned Tribunal may be

graciously pleased to

a) to award in full the amount(s) as

claimed in this statement of claims;

b) grant leave to add, to alter or to

amend the Statement of Claims as

may be deemed or to bring new

point(s) and/or evidence(s)

documentary or otherwise before or

during the course of hearing(s);

c) direct the Respondent to disclose any

other document/s in their custody

which may be found necessary for

adjudicating the matter during the

course of hearings to follow:


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d) grant such other relief or reliefs as

the Learned Tribunal may deem fit

and proper

And for this act of kindness, the Claimant, as in duty bound, shall ever

pray.

For and on behalf of Claimant

VERIFICATION

I, R.K. Bagri, s/o Shri Late Mohan Das Bagri, employee and

authorized signatory of the Claimant do hereby declare that the

statements made in paragraph nos. 1 to 26 and sub-paragraphs

thereunder of the foregoing Statement of Claim are all true to the best
~ 90 ~

of my knowledge and the rest are of my humble submissions before the

Learned Tribunal and I sign this verification on this 21 st day of

December, 2015.

_____________________
SIGNATURE

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