Some tenders were issued during last financial year. Tenders were in respect of fencing and drainage on both sides of the road. The department has allotted those tenders to my company. Company has to conduct a survey of land and demarcate slope angle for the drainage.
My engineers have committed errors in finding slope and constructed drainage up to seven kilometres in length. One supervisor team found that mistake and directed the company to stop the drainage work immediately. In the work agreement no arbitration clause is existing regarding the compensation in respect of fault in the decision making process.
But the company has filed an application under Section 11(6) of the Arbitration and Conciliation Act 1996 for the appointment of the arbitrator. The agreement is silent towards the compensation if fault is committed by the party. What should I do and what action is possible in the present circumstances?
My company has been suffering huge losses due to mistakes. The officers of the concerned department were not brought to notice until the supervisor is unveiled in his report. This is also the fault of the concerned department. It has the responsibility to check and inspect the work and intimate my engineers.
All payments are stalled and the department is not ready to clear a single cheque. If the same things persist the department can blacklist my company. Then I’ll not receive any tender from the government department. Please help.
