2. The Petitioner is a Statutory Body constituted under Section 3 of the
NHAI Act, 1988. The petitioner entered into a Consultancy Services
Agreement dated 28.1.2002 (hereinafter referred to as the ‘Agreement’) with
the respondent regarding services for construction and supervision of 4-
Laning and Strengthening of the Existing 2-Lane Section from Km 199.660
to Km 250.500 and from Km 250.500 to Km 307.500 on NH-2 in Uttar
Pradesh under Fourth Loan Package of World Bank Project.
3. The contract price for the project was Rs.115,625,260/-. This was
exclusive of local taxes which were estimated to be Rs.37,00,600/-. The
work commenced from 31.3.2002 and was to be completed in 51 months i.e.
OMP(COMM.)265/2016 Page 1 of 10
on 30.06.2006. Some dispute arose between the parties pertaining to
reimbursement of income tax paid to Government of India on behalf of the
expatriate staff (Foreign Personnel Domiciled outside India) for consultancy
services. The respondent/claimant claimed an amount of Rs.66,37,332/- on
account of the same. Claims No.2 and 3 were consequential claims of
interest whereas claim No.4 was for payment of arbitration cost.
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