Model Public School (MPS) is a very reputed school in Delhi having its branches across all the major cities in India. Praj is engaged in the business of providing transport services and carries on his business under the
CS Professional · Arbitration, Mediation and Conciliation · PYQS · June 2024
Model Public School (MPS) is a very reputed school in Delhi having its branches across all the major cities in India. Praj is engaged in the business of providing transport services and carries on his business under the name and style M/s. Triumphant Transports ('TT'), a proprietorship concern. MPS had floated a tender calling for quotes, for contracting services relating to driving, managing its buses and to provide additional transportation services, as and when needed. Praj had some contact in the senior management of MPS and was able to put in a good word about himself and his track record before the committee of the school. After a detailed evaluation, the management of the school approved TT's proposal and he was empaneled as the transport provider for the school. Accordingly, on April 1, 2018 the parties entered into an Agreement, whereby TT agreed to provide transport services to MPS. The school owned twenty-two buses, which TT agreed to operate and maintain. TT was required to provide conductors, drivers, supervisors, cleaners, full-time mechanics, and other personnel. In addition, TT also agreed to provide additional buses for the purposes of picking up and dropping off the students and the employees of MPS. The Agreement was for a term of eight years that is, from April 1, 2018 till March 31, 2026 with the first five years as a lock in period. Further, TT agreed to strictly abide by the obligations stipulated in the Agreement such as, adhering to the timing for transportation of students; regular maintenance of the buses, maintaining motorable conditions of the buses; complying with the safety guidelines issued by the Supreme Court of India; limiting the number of students transported in each bus to the permissible limit; and, in the event of breakdown of buses, providing alternate vehicles etc. For the initial year, the services were provided without any issues and the payments were also received by TT in a timely manner. However, after the first year, there was a considerable delay in payments made to TT and he was having challenges, as the working capital was getting struck. In September 2019, TT sent a communication to the Principal of the school to release the outstanding payments as per terms of the Agreement. He further stated that even though the school was collecting the transportation fee from the students well in advance, the school was making payments to him in small instalments after a substantial delay. The Principal of MPS responded by an e-mail, alleging deficiencies in the services provided by TT. He also informed that MPS would be compelled to take strict action against TT, if the said deficiencies were not rectified within a period of two weeks. In first week of November 2019, through a communication MPS terminated the Agreement with TT. Aggrieved by the termination of Agreement, TT invoked the arbitration clause in terms of Clause 36 of the Agreement. Subsequently, the Court, by an order dated April 6, 2020, directed the Delhi International Arbitration Centre (DIAC) to appoint an arbitrator to adjudicate the disputes between the parties. During the arbitration, MPS also produced evidences including the complaints filed by parents of the students against TT. In the background of above facts, answer the following: (a) Prepare a draft Statement of Claim, assuming necessary facts.
Answer & Explanation:
BEFORE THE SOLE ARBITRATOR CLAIM PETITION NO: ________ of 2020 Statement of Claim PART A: Compulsory Information I. DETAILS OF CLAIMANTS: M/s Triumphant Transport Proprietor through its Mr.____________ vide Power of Attorney Shri____________ residing at ____________ having office at ____________ II. DETAILS OF RESPONDENT through its Mr.____________ vide Power of Attorney Shri____________ residing at ____________ having office at ____________ III. STATEMENT OF FACTS: That Respondent has floated a tender for contracting services relating to driving, managing its buses and providing additional transport services on need basis. That the management of the school approved claimant proposal and his firm M/s Triumphant Transports (TT) was empaneled as the transport provider for the respondent. That the parties entered into an Agreement dated 1st April, 2018 whereby claimant agreed to provide transport services to MPS. The claimant was to operate and maintain the twenty two buses of MPS. The Agreement was for a term of eight years that is, from April 1, 2018 till March 31, 2026 with the first five years as a lock in period. That after the first year, there was a considerable delay in payments made to claimant and he faced challenges, as his working capital was plummeted. In September 2019, claimant sent a communication to the Principal of the school to release the outstanding payments as per terms of the Agreement. Instead of releasing the payment, principal of responded by an e-mail, alleged deficiencies in the services which were baseless. The claimant also threatened that defendant would take strict action against claimant if the alleged deficiencies were not rectified. In first week of November 2019, the defendant terminated the Agreement with claimant. Subsequently, Claimant submitted a claim that was repudiated by the Defendant. Therefore, claimant invoked the arbitration clause pursuant to Clause 36 of the Agreement. Subsequently, the Court, by an order dated April 6, 2020, directed the Delhi International Arbitration Centre (DIAC) to appoint an arbitrator to adjudicate this matter. The Sole Arbitrator, directed the parties to submit the Statement of claims and subsequent submissions via a preliminary order within the prescribed timeline. That the claimant hereby submits this statement of claim pursuant to the Arbitral Proceedings commenced by virtue of above said order. IV. POINTS FOR CONSIDERATION That the Agreement was for a term of eight years that is, from April 1, 2018 till March 31, 2026 with the first five years as a lock in period but the defendant has terminated the contract which is unlawful and material breach of Contract. That there was a considerable delay in payments made to claimant and he faced challenges, as the working capital got struck. Due to which the claimant has suffered heavy losses. V. GROUND OF CLAIM Illegal breach of Contract and heavy losses to claimant due to that. VI. DELAY ANALYSIS Not Applicable VII. THE DAMAGES ACCRUED / QUANTUM ANALYSIS Attached as Annexure A VIII. THE RELIEFS/REMEDIES / PRAYER The claimant hereby prays that: The tribunal directs the defendant to pay Damages of ₹____________ along with Interest be paid to the claimant by the defendant. (Lis pendent, post award interest) Damages accrued due to the contractual breaches - loss of profit. The cost of Arbitral Proceedings be imposed on the defendant. Any other remedy as the tribunal deem fit to render justice. PART B: Documents Annexed The Statement of claim is accompanied by the following documents: Detailed Chronological List of Dates Annexed. Copy of the following documents: Copy of the tender Copy of the Agreement Copy of the Work Order Copies of all communication between the parties are annexed as annexure B. PART C: Other Evidence I. Other Evidences Labour / Staff / Machinery deployment records Proof of Payments made to various stakeholders Insurances for the resources Guarantee / Bonds renewal details Any other submission / approvals PART D: Service of the Statement of Claim It is submitted that the statement of claim along with all the documents and annexure have been served on the respondent's counsel on ____________ at AM/PM by ____________. The counsel has counter signed the claim for proof of the same. PART E: Additional Information Signature of the Claimant ____________ | Date: ____________ PART F: For office use only Date of filing: ____________ | Filed by: ____________
Topics: Arbitration Proceedings
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