The dispute was regarding a contract for the two-laning of a highway. The PWD had engaged the respondent-contractor for the project.
The contract between the two parties required disputes to be referred to a Dispute Review Expert Board (DREB), whose decision would be final and binding unless challenged within 28 days.
The DREB in 2017 found that the contractor was entitled to a sum in excess of ₹117 crore on account of interest for delayed payments and unpaid bills.
On the remaining disputes between the parties pertaining to delay, disruption and prolongation of the contract, a separate decision was rendered by the DREB a year later.
The PWD did not comply with or contest the 2017 decision. Consequently, the contractor wrote to it on June 11, 2018 seeking to initiate arbitration. In response to the letter, the PWD claimed that it was going to appeal against the order of the DREB. This response was in disregard of the contract’s provision that required disputes to be referred to arbitration within a specified period.
Source: Barandbench
