Case Note & Summary
The Government of Andhra Pradesh decided to construct the Pulichintala Project for stabilizing the Ayacut in the command area under the Nagarjuna Sagar and for various other reasons. One of the components of the project was construction of a dam and ancillary infrastructure. A tender was issued for execution of the work on an engineering, procurement and construction (EPC) turnkey contract basis. The first respondent, M/s. SCLCR 18g Joint Venture, was the successful bidder and the contract was awarded to it. An agreement was executed on 30.09.2004 for execution of the project. The dispute resolution mechanism under the contract, as per clause 19.4, provided for obtaining a Dispute Adjudication Board's decision before referring disputes to arbitration. Disputes arose between the parties, leading to arbitration. The Arbitral Tribunal passed an award dated 03.10.2013. The Government challenged the award by filing AOP No.23 of 2015 before the Principal District Judge, Krishna at Machilipatnam. The Principal District Judge passed an order dated 02.06.2016. Aggrieved by that order and the arbitral award, the Government filed C.M.A. No.1141 of 2018 seeking to set aside both. In the C.M.A., the Government also filed I.A. No.1 of 2018 to condone the delay of 766 days in representing the appeal, and I.A. No.2 of 2018 to stay all further proceedings in E.P. No.420 of 2017, including auction/sale of items 1 and 2 of the E.P. schedule property. Additionally, the Government filed C.R.P. No.6787 of 2018 under Article 227 of the Constitution challenging the order dated 24.09.2018 passed in E.P. No.420 of 2017 by the X Additional District and Special Sessions Judge, Krishna at Machilipatnam, and sought stay of further proceedings. The High Court heard the learned Advocate General and Government Pleader for the appellant and the learned Senior Counsel for the respondents. An interim stay was granted on 23.11.2018 in I.A. No.2 of 2018. The court reserved judgment on 29.12.2025 and pronounced judgment on 06.03.2026. The provided excerpt does not contain the detailed reasoning or the final operative directions of the court.
Headnote
A) Arbitration - Setting Aside Arbitral Award - Appeal Against Order in AOP and Award - Code of Civil Procedure, 1908, Section 151 - The Government of Andhra Pradesh sought to set aside the order dated 02.06.2016 in AOP No.23/2015 and the arbitral award dated 03.10.2013; it also filed an application to condone the 766-day delay in representing the CMA and sought stay of execution proceedings. The dispute arose from a construction contract for the Pulichintala Project where the first respondent was the successful bidder and an agreement was executed on 30.09.2004. (Paras 1-4). B) Execution - Stay of Auction Sale - Stay of Further Proceedings in E.P. No.420 of 2017 - Code of Civil Procedure, 1908, Section 151 - The Government sought stay of all further proceedings in E.P. No.420 of 2017 including auction/sale of items 1 and 2 of the E.P. schedule property; an interim stay was granted on 23.11.2018 in I.A. No.2 of 2018, and later an application was filed to vacate that stay. (Paras 1-4). C) Constitution - Supervisory Jurisdiction - Article 227 - Constitution of India, Article 227 - The Government filed a civil revision petition to set aside the order dated 24.09.2018 passed in E.P. No.420 of 2017 on the file of the X Additional District and Special Sessions Judge, Krishna at Machilipatnam, and sought stay of auction/sale of schedule property pending disposal of the CRP. (Paras 1-4).
Issue of Consideration
Whether the delay of 766 days in representing the CMA should be condoned; whether stay of execution proceedings including auction/sale of schedule property should be granted; whether the order dated 24.09.2018 in EP No.420 of 2017 should be set aside; and whether the arbitral award dated 03.10.2013 and the order dated 02.06.2016 in AOP No.23/2015 should be set aside.
Law Points
- Arbitration appeal under Section 37 of Arbitration and Conciliation Act
- 1996
- Section 151 CPC
- Article 227 Constitution of India
- execution stay
- condonation of delay
- dispute adjudication board
