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National Highways Authority of India v. Reengus Sikar Expressway Ltd.
National Highways Authority of India v. Reengus Sikar Expressway Ltd.
Tribunal.
18. On the other hand, learned senior counsel for the respondent
submits that the Arbitral Tribunal has rightly held that the Minutes of
Meeting dated 02.03.2012 do not in any manner amount to a waiver of
the right of the respondent to claim damages due to petitioner's failure
to meet the Conditions Precedent as provided in Clause 4.1.2 of the
Concession Agreement. He further submits that Claim no. 12 of the
petitioner has been awarded by applying Clause 10.3.4 of the
Concession Agreement which provides for liquidated damages incase of
failure of the petitioner to grant ROW to the concessionaire within 90
days from the Appointed Date. He further submits that as far as the
actual loss is concerned, though it may be true that with the petitioner
paying 100% of the annuity amount, the loss as alleged in the
Statement of Claim may no longer survive, at the same time the
Arbitral Tribunal has found such loss to have been actually suffered by
the respondent while granting Claim no. 15 in favour of the respondent.
He submits that as actual damages were proved by the respondent in
form of Claim no. 15, the award of Claim no. 12 in favour of the
respondent cannot be challenged by the petitioner. He further submits
that there is no challenge made by the petitioner to the fact that the
damages as awarded under Claim no. 12 are strictly in accordance with
Article 10.3.4 of the Concession Agreement, which is the clause
providing for Liquidated Damages.
19. I have considered the submissions made by the counsels for the
parties. I would first reproduce the relevant extract from the Minutes of
Meeting dated 02.03.2012 that has been relied upon by the petitioner
in support of its challenge as under:
“…..Further, the Project Director informed that existing ROW of
45m is enough for execution of 4-lanning and action already taken
for acquisition of remaining land of 15m width. Further in case of
Palsana Bypass 60m land is being acquired. Consequent upon
publication of notification u/s 3(D) of NH Act, the land for Palsana
Bypass has vested to Central Government. As such, the
concessionaire is in a position to commence the work in Palsana
Bypass immediately and meantime the 2nd stage clearance of
protected forest could be obtained. Accordingly, on insistence of
NHAI, the concessionaire agreed to commence the work on existing
available stretches. However the concessionaire requested to
expedite the necessary action for 2nd stage forest clearance.
In view of the above status, the concessionaire and Authority
agreed for Appointed Date of the project as 05.03.2012 subjected to
approval of Competent Authority and Joint Memorandum as per
Concession Agreement shall be prepared, accordingly.”
20. A reading of the above extract from the Minutes of Meeting
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would show that it was only at the insistence of the petitioner that the
respondent agreed to commence the work on the existing available
stretches of land and for the Appointed Date to be declared as
05.03.2012. A reading of the Minutes of Meeting do not suggest that
the consequence and failure of the petitioner to meet the Conditions
Precedent as prescribed in Clause 4.1.2 and/or liquidated damages as
prescribed in Clause 4.2 was ever in contemplation of the parties while
taking the decision as recorded in the Minutes of Meeting dated
02.03.2012.
21. In Sonell Clocks and Gifts Ltd. v. The New India Assurance Co.
Ltd., (2018) 9 SCC 784, the Supreme Court has held as under:—
“13. It is a well established position that waiver is an intentional
relinquishment of a right. It must involve conscious abandonment of
an existing legal right, advantage, benefit, claim or privilege, which
except for such a waiver, a party could have enjoyed. It is an
agreement not to assert a right. To invoke the principle of waiver,
the person who is said to have waived must be fully informed as to
his rights and with full knowledge about the same, he intentionally
abandons them. There must be a specific plea of waiver, much less
of abandonment of a right by the opposite party.”
22. The Arbitral Tribunal has also considered the said Minutes of
Meeting and held as under:
“18. The Tribunal has gone through the pleadings of the parties
and finds that:
“i. xxxxxxx
ii Contrary to the argument of the Respondent, there is no
provision in the C.A. for waiver of the conditions precedent for
deciding the appointed date, nor can the minutes of the
meeting held on 02.03.2012 be construed as a waiver of the
conditions precedent as the concessionaire/claimant signed the
minutes and agreed to the appointed date decided (as
05.03.2012) on the insistence of the Respondent even as the
land/RoW as required to be made available up to the appointed
date was not available.”
23. I do not find any reason to disagree with the said finding of the
Arbitral Tribunal.
24. However, at the same time, the only pleading of the respondent
to justify Claim no. 12 as in its Statement of Claim is in paragraph 12.0
(v), which is reproduced hereinbelow:
12.0 Claim No. 12 : Damages payable to
Concessionaire/Claimant for delay in handing over ROW Rs.
2,77,38,359.00
xxxxxxx
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40. Learned senior counsel for the respondent does not dispute the
above contention. He submits that the respondent would have no
objection if under Claim no. 14 and 16 a consolidated amount as noted
above is granted in favour of the respondent.
41. In view of the above submissions, award of claim no. 14 and 16
is modified holding that the respondent would be entitled to only a
consolidated sum of Rs. 1,16,76,000/- under Claim no. 14 and Claim
no. 16. Award of amount in excess of Rs. 1,16,76,000/- under Claim
No. 14 and 16 is set aside.
42. The last challenge of the petitioner is to award of Claim no. 19,
which is the award of interest on the amount awarded under Claim no.
14 in favour of the respondent. As the award of Claim no. 14 and 16
have been confined only to a sum of Rs. 1,16,76,000/- on the basis of
the submissions made by the petitioner itself, the interest under Claim
no. 19 would also stand modified and the respondent would be entitled
to interest at the rate awarded by the Arbitral Tribunal, however, on the
awarded amount of Rs. 1,16,76,000/-.
43. No other submission is made by the counsels for the parties.
44. The petitioner, pursuant to the interim order dated 22.11.2018
passed in the present petition has deposited certain amounts with the
Registry of this Court. The parties shall jointly approach the Registrar
General of this Court with the computation of the amounts that would
have to be released to either party in terms of the Arbitral Award as
modified by the present judgment.
45. The petition partially succeeds in the above terms, with no order
as to costs.
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