GAMMON INDIA LIMITED
GAMMON INDIA LIMITED
GAMMON INDIA LIMITED
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party as the Defendant had alleged that an amount of Rs. 340,000,000 is due to it from the joint venture. The<br />
Company had engaged the services of Defendant as the sub-contractor for certain works in relation to<br />
contract of civil works of Sewa Hydro Electric Project. As a result of default by the Defendant, the Company<br />
had taken over the entire plant site and equipment. This action of the Company was challenged by the<br />
Applicant as being illegal as the plant equipment was hypothecated to Applicant by the Defendant. The<br />
matter is pending. The Applicant has prayed for release of the plant and machinery in custody of the<br />
Company.<br />
7. M/s. National Hydro-Electric Power Corporation (―Plaintiff‖) has filed a petition in the High Court of Jammu<br />
and Kashmir against the Company under section 34 of the J&K Arbitration and Conciliation Act, 1997 for<br />
setting aside the arbitral award dated January 4, 2005. The Plaintiff had appointed the Company as the<br />
contractor for construction of tail race tunnel at salal hydro electric project. The Company had filed a claim<br />
before the arbitrator for recovery of certain amounts from the Plaintiff which was allowed in favour of the<br />
Company. The matter is pending. The total amount involved is approximately Rs. 217.5 million.<br />
8. Madhavi Dandekar and others (―Plaintiffs‖) have filed a money suit against the Company in court of senior<br />
civil judge, Palghar. The Plaintiffs have alleged that the Company has encroached their land and carried out<br />
excavation activities, including excavation of stone, without their permission. The Plaintiffs have claimed the<br />
price of the stone excavated from the Company. The matter is pending. The total amount involved is<br />
approximately Rs. 195 million.<br />
Arbitration proceedings<br />
9. Champ Enterprises Limited (―Claimant‖) has initiated two arbitration proceedings against the Company for<br />
recovery of additional cost incurred by the Claimant in executing the contract for civil work for construction<br />
of tail race channel and other associated works relating to the teesta canal fall hydel project and excavation<br />
work in doyang hyro-electric project. The Claimant has filed a statement of claim before the sole arbitrator.<br />
The matter is pending. The total amount involved is approximately Rs. 94 million.<br />
10. The Company has initiated arbitration proceedings against the Gas Authority of India Limited<br />
(―Respondent‖), for recovery of liquidated damages and cost of additional items aggregating to Rs. 5.7<br />
million in relation to work of design, construction, testing and commissioning of cooling tower and cooling<br />
water treatment plant for LPG recovery project at Pata, Uttar Pradesh. The Respondent has raised a counter<br />
claim for recovery of loss of production in thermal power project due to delay in completion of works by the<br />
Company. The matter is pending and is in advanced stages of hearing. The total amount of counter claim<br />
involved is Rs. 45.92 million.<br />
11. The Company has initiated arbitration proceedings against the water resources department, government of<br />
Bihar (―Opposite Party‖), for recovery of contract amount, idle charges and loss of overheads and profits<br />
from the Opposite Party in relation to construction of concrete cum masonary dam under burnar reservoir<br />
project, aggregating upto Rs. 564.1 million. The Opposite Party had terminated the contract and has raised a<br />
counter claim of liquidated damages. The arbitrator has been appointed and the matter is pending. The total<br />
amount of counter claim involved is Rs. 74.2 million.<br />
Notice<br />
12. DMRC has issued a show cause notice dated July 29, 2009 to the Company alleging failure to exhibit due<br />
professionalism, quality and adoption of ethical procedures by the Company which led to serious accidents at<br />
work site. Such accidents have lead death of eight persons and injury to 20 persons. DMRC has proposed to<br />
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