The Noida Authority has been ordered to pay ITD Cementation India Limited around INR 36 crore and interest for constructing an elevated road from Sector-60 to Vishwabharti School. The company had claimed that it had not received the entire payment for the project, leading to an arbitration process. The arbitrator ruled in favour of the company, rejecting the Authoritys claim of excess payment.Background of the CaseIn February 2014, the Noida Authority floated a tender for a five km long elevated road from Vishwabharti School to Sector-61 on MP-2 road. The initial estimated construction cost of the project was around INR 415 crore. However, due to delays, the estimated construction cost reached around INR 468 crore in 2018. The company had to deposit a security deposit of about INR 12 crore for the project.The Authority had stopped the companys payment, claiming it had already been overpaid. The case went to arbitration, and the company claimed more money due to budget overruns and delays in the project, leading to the claim rising to around INR 36 crore. The Authority asked for another INR 48 crore, which the arbitrator did not allow. The Arbitrator rejected the claim and ordered the Authority to pay the company Rs 36 crore with interest.Key Decisions of the ArbitrationThe arbitrators decision to reject the Noida Authoritys claim of excess payment to ITD Cementation India Limited during the construction of the elevated road has resulted in the Authority being ordered to pay INR 36 crore with interest to the company. The dispute centred on applying clauses of 10CC and 10CA of PWD, with the calculation depending on whether these clauses applied or not. The arbitrator rejected the imposition of these clauses on the Authority, leading to the decision in favour of the company.The Authority is now considering an appeal before the District Judge, while the company spent approximately INR 54 lakh during the arbitration process, which must also be given to the Authority. The CAG audit had previously revealed payments totalling over INR 17 crore during the elevated roads construction, and investigations are ongoing against Authority employees and officers in the matter.The arbitrators ruling in favour of ITD Cementation India Limited ends a long-standing dispute with Noida Authority over excess payment. The decision highlights the importance of adhering to the terms and conditions of a construction contract.
