Statement of claim with supporting affidavit before sole arbitrator for unpaid dues under terminated work order
0 of 73 blanks filled
IN THE MATTER OF:-
Claimant's name: CLAIMANT
VERSUS
Respondents' names: RESPONDENTS
INDEX
| S.NO. | PARTICULARS | PAGE |
|---|---|---|
| 1. | STATEMENT OF CLAIM ON BEHALF OF THE CLAIMANT, ALONG WITH AFFIDAVIT IN SUPPORT. |
| 2. | ANNEXURE C-1: BOARD RESOLUTION DATED Date of board resolution. |
| 3. | ANNEXURE C-2: COPY OF WORK ORDER DATED Date of first work order. |
| 4. | ANNEXURE C-3: COPY OF WORK ORDER DATED Date of second work order. |
| 5. | ANNEXURE C-4: COPY OF TERMINATION LETTER DATED Date of termination letter. |
| 6. | ANNEXURE C-5: COPY OF REPLY TO TERMINATION LETTER DATED Date of reply to termination letter. |
| 7. | ANNEXURE C-6: COPY OF LEGAL NOTICE SENT BY THE RESPONDENT DATED Date of respondent's legal notice. |
| 8. | ANNEXURE C-7: COPY OF NOTICE DATED Date of arbitration invocation notice INVOKING ARBITRATION. |
| 9. | ANNEXURE C-8: COPY OF REPLY OF RESPONDENT TO NOTICE OF ARBITRATION INVOCATION DATED Date of respondent's reply to arbitration notice. |
| 10. | ANNEXURE C-9: COPY OF REJOINDER TO THE REPLY NOTICE DATED Date of rejoinder to reply notice. |
| 11. | ANNEXURE C-10: COPY OF LETTER DATED Date of letter raising claims ISSUED BY THE PETITIONER RAISING CLAIMS, ALONG WITH ANNEXURES. |
| 12. | ANNEXURE C-11: COPY OF EMAILS EXCHANGED BETWEEN THE PARTIES. |
| 13. | ANNEXURE C-12: COPY OF ORDER DATED Date of air quality order REGARDING AIR QUALITY. |
| 14. | ANNEXURE C-13: COPY OF MINUTES OF MEETING DATED First date of minutes of meeting, Second date of minutes of meeting, Third date of minutes of meeting AND Fourth date of minutes of meeting. |
| 15. | ANNEXURE C-14: COPY OF HINDRANCE REPORT ALONG WITH TRUE TYPED COPY. |
| 16. | ANNEXURE C-15: COPY OF THE ARBITRATION PETITION BEARING NO. Arbitration petition number/Year of the arbitration petition before the High Court FILED BY THE CLAIMANT BEFORE THE HON'BLE HIGH COURT OF DELHI. |
| 17. | ANNEXURE C-16: COPY OF THE ORDER DATED Date of High Court order PASSED BY THE HON'BLE HIGH COURT IN ARBITRATION PETITION BEARING NO. Arbitration petition number (repeat)/Year of the arbitration petition (repeat). |
| 18. | VAKALATNAMA |
DELHICLAIMANT
THROUGH
DATED
Name of the Claimant's advocate (Advocate)
Counsel for Claimant
Off.: Advocate's office address
Advocate's office address (second line)
Mob. No. Advocate's mobile number
Email: Advocate's email ID
BEFORE THE LD. SOLE ARBITRATOR,
DELHI INTERNATIONAL ARBITRATION CENTRE,
DELHI HIGH COURT AT NEW DELHI.
ARBITRATION CASE NO. Arbitration case number of Year of the arbitration case.
IN THE MATTER OF:-
Claimant's name: CLAIMANT
VERSUS
1. Name of Respondent No. 1 (LLP)
2.Name of Respondent No. 2
3. Name of Respondent No. 3
All at Respondents' address,
Respondents' address (second line): RESPONDENTS
STATEMENT OF CLAIM ON BEHALF OF THE CLAIMANT
MOST RESPECTFULLY SHOWETH:-
1.That the Claimant is a private limited company registered under the Companies Act, 1956, having its office at Claimant's office address. The company is, inter alia, engaged in the business of construction. Owing to its distinguished working style and transparency, the Claimant has earned a commendable reputation not only in the State of Delhi but across the entire country, and is accordingly a revered name in the industry.
2.That as per the information available on the web portal of the Ministry of Corporate Affairs, Name of Respondent No. 1 (LLP), i.e., Respondent No. 1, is a Limited Liability Partnership (LLP) based out of Delhi and was officially incorporated on Date of incorporation of LLP. That Mr. Name of Respondent No. 2, Respondent No. 2, and Mr. Name of Respondent No. 3, Respondent No. 3, are the two Partners of Respondent No. 1 who are responsible for its day-to-day operations.
3.That after considerable negotiations between the Claimant and the Respondents, the Respondents were pleased to issue the Work Order dated Date of work order (hereinafter referred to as the "WO"), thereby awarding the project at Project name, Project location details, New Delhi, for the construction of a warehouse building with materials (excluding concrete and steel) at the site situated at Site address, Site address (continued), Delhi, in favour of the Claimant, in accordance with the terms and conditions mentioned and agreed upon therein. It is pertinent to mention that the Respondents, since the very inception, created hurdles in the execution of the project, which have led to extreme mental pressure and anxiety on account of their misconduct, high-handedness and improper dealings in relation to the WO.
4.That the Respondents are responsible for the day-to-day affairs of Name of Respondent No. 1 (LLP), and it was therefore their duty to adhere to and comply with all the terms and conditions of the WO, in letter and in spirit, as signed between the Claimant and the Respondents.
5.That the aforesaid final WO was sent and shared with the Claimant via email on Date WO sent by email, whereas the hard copy of the same was collected from the Respondents' office on Date hard copy of WO collected. Thereafter, a hard copy of the said WO was signed by the Claimant on the same day and sent back to the Respondents on Date signed WO returned.
6.That several emails were exchanged between the Claimant and the Respondents, wherein the Respondents admitted the fact that the project land was not demarcated until mid-Month land demarcation completed, and that the actual physical possession of the project land was handed over to the Claimant only on Date of possession handed over, i.e., the date on which the WO was finally signed by the Claimant and handed over to the Respondents.
7.That even though the WO was prepared by mutual consent in the month of Month WO prepared, the Respondents were unable to obtain the clearances and demarcation within the agreed-upon time period. Thus, there was a delay at their end in handing over possession of the project site to the Claimant until the end of Month possession handed over (end of).
8.That as per the terms and conditions of the WO, the agreed-upon time period within which the construction was to be completed at the project land was seven months, i.e., six months and two weeks as the initial stipulated time under the WO, and thereafter a grace period of another two weeks.
9.That, thus, the stipulated time period of seven months was to mature on Date stipulated period matured; however, to the Claimant's complete shock and dismay, an illegal termination letter was served upon the Claimant on Date termination letter served. That the said termination letter dated Date of termination letter (repeat) is completely flawed, as the same has been issued without any reasonable grounds for such termination. The Claimant issued a detailed reply to the said termination letter on Date of reply to termination letter (repeat), to which the Respondents have neither paid any heed nor bothered to respond till date.
10.That, moreover, as the Respondents are also aware, a ban was imposed by the National Green Tribunal on all construction sites in Delhi, which continued and was extended for a period of Duration of the NGT ban on construction, owing to which no construction work could be carried out. Therefore, in the calculation of the time period within which the project was to be completed, this period of Duration of the NGT ban on construction has to be added over and above the seven-month period.
11.That, additionally, there has been a delay and stoppage of work of Duration of delay caused by NHAI work, which was due to the NHAI work being carried out right outside the project site, owing to which the Claimant was unable to bring its machinery and raw materials to the site in order to carry out the construction work. Several communications via emails and WhatsApp chats have been exchanged between the parties, wherein the Respondents have accepted the fact that the entry to the project site was blocked, and accordingly the Respondents had sought time to resolve the said issue with the NHAI. As per the terms and conditions contained in the WO, access to the project site was the responsibility of the Respondents, and any hindrance in the execution of the scope as per the WO has to be accounted for, and the Claimant deserves an extension of the very same number of days.
12.That the Respondents were also made aware of the fact that there was a delay of 10–12 days on account of a shortage of concrete. The said shortage of concrete occurred due to the negligence of the Respondents, as under the Work Order it was the duty and responsibility of the Respondents to provide concrete to the Claimant at the project site. The said fact is recorded and evident from various emails and WhatsApp chats, wherein the Respondents admitted the shortage and the delay in providing concrete to the Claimant.
13.Further, as per the terms and conditions contained in the Work Order, it was the duty of the Respondents to provide the drawings of the PT Beam and the boundary walls which were to be installed and constructed at the project site. There has been a delay of more than one month, as the Respondents failed to provide the same within the agreed timelines. The said fact is evident and established from the most recent drawing, which was sent by the Respondents only on Date drawings sent, i.e., 17 days prior to the issuance of the termination letter dated Date of termination letter (repeat), thereby demonstrating the malafide, irresponsible intention and conduct of the Respondents, calculated to cause grave loss to the Claimant.
14.That if the aforesaid delays, i.e., the NGT Ban and the inordinate delays at the end of the Respondents on account of the missing drawings, the shortage of concrete and the restricted entry to the project site, are calculated and accounted for, the Claimant is legally entitled to an additional period of 90–100 days for the completion of the work at the project site, which takes the project completion date to Extended project completion date. The aforesaid delays and the extension of the time period have been recorded in various communications between the parties through emails and WhatsApp chats, wherein the Respondents have admitted their fault and have, time and again, sought time to rectify the issues raised by the Claimant.
15.That the negligent and irresponsible behaviour of the Respondents has caused grave financial loss and mental harassment to the Claimant. Even so, owing to the long-standing cordial relations between the parties, the Claimant endeavoured to resolve these issues amicably; however, the Respondents have failed to show any sincere interest in settling the outstanding claims of the Claimant.
16.That even after the illegal termination of the Work Order by the Respondents, which caused grave financial loss to the Claimant, the Claimant endeavoured to resolve the dispute amicably and accordingly shared the detailed claim with the Respondents through email, and also handed over a hard copy of the claim/dues to the staff of the Respondents, along with all the supporting data and details.
17.However, to the utmost surprise of the Claimant, the Respondents, after a period of one month, raised a baseless counter-claim, which is contrary to the Work Order signed between the parties. The said illegal and unsubstantiated counter-claim raised by the Respondents proves their malafide intention not to settle the legitimate claims raised by the Claimant amicably, and further demonstrates their ill intent to cheat the Claimant and to cause further financial hardship and losses to the Claimant.
18.That the Claimant has attempted to engage with the Respondents in respect of the disagreements and disputes created by the Respondents themselves; however, all efforts of the Claimant have failed, as the Respondents have refused to cooperate so as to settle the legitimate claims and disputes raised by the Claimant.
19.That the Claimant is left with no other option but to invoke the arbitration clause stipulated in the Work Order, so as to recover the dues which the Respondents have withheld and have refused to pay to the Claimant, thereby causing grave financial loss to the Claimant.
20.That by way of the legal notice dated Date of legal notice invoking arbitration, and in terms of the Work Order, owing to the gross violation and breach of the terms of the Work Order, the Claimant invoked the Arbitration Clause. The relevant extract of Arbitration Clause B of the Work Order, applicable to the present case, is reproduced herein below for ready reference:—
‘’If the dispute cannot be resolved pursuant to Clause A above within 10 calendar days of the commencement of negotiations, the dispute shall be referred to and finally resolved by arbitration administered under the Arbitration and Conciliation Act, 1996, as amended (the Arbitration Act), by a sole Arbitrator. M/s Name of LLP in arbitration clause LLP shall suggest 3 independent and distinguished persons out of which the agency shall choose one person to act as the sole arbitrator. The seat of the Arbitration shall be in New Delhi, India. The proceedings of the Arbitration shall be in English Language. The Arbitrator(s) shall also decide on the costs of the arbitration proceedings. The arbitration award shall be final and binding on the parties subject to applicable law in force and the award shall be enforceable in any court of competent jurisdiction in India. During the pendency of the arbitration proceedings, the parties shall continue to perform such of their obligations that are not the subject matter of the Dispute under this Agreement.’’
21.That the process provided under Clause A of the Work Order now stands exhausted on account of the lack of cooperation of the Respondents, and the said clause was invoked by the Claimant by way of the notice dated Date of arbitration clause invocation notice, whereby the Respondents were requested to suggest and share 03 (three) independent names of arbitrators, within a period of 15 days from the receipt of the said notice, for the adjudication of the dispute in terms of the Work Order.
22.That it is pertinent to mention that on Date notice of invocation served, the Claimant served upon the Respondents the notice of invocation of the arbitral clause under the Work Order dated Date of invocation notice (repeat). It is trite to mention that the Respondents replied vide reply dated Date of respondent's reply suggesting arbitrators, suggesting three names of arbitrators; however, in response to the said reply, the Claimant sent a rejoinder vide notice dated Date of rejoinder notice, not agreeing to the names suggested by the Respondents. By such conduct of the Respondents, it is evident that the Respondents are not only in breach of the contractual mandate but also show disrespect to the rule of law, and the sole objective of the Respondents is to delay the present dispute between the Claimant and the Respondents.
23.That the Claimant has been compelled to invoke the arbitration clause, which had been incorporated precisely to address such disputes arising between the parties, for the resolution and settlement of matters relating to the agreement, as narrated above.
24.That in light of the aforesaid, the Claimant was constrained to approach the Hon’ble Delhi High Court and file Arbitration Petition bearing No. Arbitration petition number of 2023 under Section 11(6) of the Arbitration and Conciliation Act, 1996, for the appointment of a sole arbitrator under the aegis of the Delhi International Arbitration Centre. Accordingly, the Hon’ble High Court, vide order dated Date of High Court order referring to DIAC 2023, was pleased to refer the disputes to the aegis of the DIAC and thereby constituted the present arbitral tribunal.
25.The Claimant craves leave of this Hon’ble Tribunal to rely upon various documents in support of the Statement of Claim, which are being filed herewith. By way of abundant caution, and in the interest of justice, the Claimant craves leave of this Hon’ble Tribunal to place any other or further documents which the Claimant may subsequently discover and which are found to be of relevance, and which may assist this Hon’ble Tribunal in arriving at a just decision.
In light of the above, it is most respectfully prayed as follows:
PRAYER:-
In view of the above, the Claimant most respectfully prays that this Hon’ble Tribunal may be pleased to award the following in favour of the Claimant:—
i)Pass an award in favour of the Claimant and direct the Respondents to make payment of ₹ Amount claimed (₹)/- (Amount claimed in words only) together with interest at the rate of 18% from the due date thereof till the date of realisation of the payment;
ii)Pass an award in favour of the Claimant and direct the Respondents to pay the other charges incurred by the Claimant on account of the misrepresentations and false assurances made by the Respondents;
iii)Direct the Respondents to pay all legal costs incurred by the Claimant in pursuing and defending legal proceedings before the Courts at Delhi as well as in the present arbitration proceedings, together with interest at the rate of 18% per annum;
iv)Direct the Respondents to pay pendente lite interest at the rate of 18% per annum to the Claimant on all sums found due and payable, for the period from May, 2022 till the date of conclusion of the present arbitration proceedings;
v)Grant any other and further relief as this Hon'ble Tribunal may deem just and proper in the facts and circumstances of the case;
vi)Pass any further order(s) or direction(s) as this Hon'ble Tribunal may deem fit, proper and necessary in the facts and circumstances of the present case and in the interest of justice.
DELHICLAIMANT
THROUGH
DATED
(Advocate)
Counsel for Claimant
BEFORE LD. SOLE ARBITRATOR
DELHI INTERNATIONAL ARBITRATION CENTER,
DELHI HIGH COURT AT NEW DELHI.
ARBITRATION CASE NO. Arbitration case number (repeat) of 2024.
IN THE MATTER OF:-
Claimant's name: CLAIMANT
VERSUS
Respondents' names (repeat): RESPONDENTS
AFFIDAVIT
Affidavit of Mr. Name of deponent, aged about Age of deponent years, Director / Authorised Representative of M/s. Name of claimant company, having its registered office at Registered office address of claimant, New Delhi-110016, do hereby solemnly affirm and declare as under:
1.That I am the Authorised Representative / Director of the Claimant company in the present case and, as such, I am well conversant with the facts of the present case and am competent to depose to this affidavit.
2.That the submissions as to facts made in the Statement of Claim under Rule-15 of the DIAC (Arbitration Proceedings) Rules, 2018 have been drafted by my counsel, and the averments contained therein are true and correct to my knowledge, while the legal submissions made therein are based on legal advice received and are believed to be true.
3.That the annexures annexed to the Statement of Claim are true copies of their respective originals.
DEPONENT
VERIFICATION
Verified at Delhi on this Date of verification that the contents of this affidavit are true and correct to the best of my knowledge and belief and nothing material has been concealed therefrom.
DEPONENT