The main legal point established in the judgment is the interpretation of excepted matters under the arbitration agreement, specifically analyzing the clauses in the General Conditions and Special Conditions to determine the arbitrability of the claims.

Judgment

R. C. LAHOTI, J.

( 1 ) THE respondent was granted by the appellants work of construction on bored piles 500 mm dia by cast in Situ method for widening and raising of Pul Mithai (S ). A contract was entered into between the parties on 27-4-1985. The contract is subject to the General conditions of the contract of Railways read with Special Conditions. Disputes arose between the parties and the respondent moved a petition under Section 20 of the Arbitration Act, 1940 praying for the arbitration agreement being filed in the Court and six claims set out in the petition being referred to the Arbitrator for settlement. The learned single Judge of the High Court of Delhi (Original Side) directed two claims to be referred but as to claims numbers 3 to 6 formed an opinion that the claims being excepted matters within the meaning of Clause 63 of General Conditions of Contract were not liable to be referred to arbitration. An intra Court Appeal preferred by respondent has been allowed and the four claims have also been directed to be referred by the Division Bench to arbitrator on forming an opinion that they were not covered by excepted matters. The appellants have filed this petition seeking special leave to appeal against the decision of Division Bench.

( 2 ) LEAVE granted.

( 3 ) CLAUSE 63 of the General Conditions of the Contract provides as under :-"matters finally determined by the Railway - All disputes and differences of any kind whatsoever arising out of or in connection with the contract, whether during the progress of the work or after its completion and whether before or after the determination of the contract, shall be referred by the contractor to the Railway and the Railway shall within a reasonable time after receipt of the Contractors representation make and notify decisions on all matters referred to by the contractor in writing provided that matters for which provision has been made in clauses 18, 22 (5), 39, 45 (a), 55, 55-A (5), 61 (2) and 62 (1) (XII) (B) (e) (b) of the General Conditions of Contract or in any clause of the special conditions of the contract shall be deemed as excepted matters and decisions thereon shall be final and binding on the contractor provided further that excepted matters shall stand specifically excluded from the purview of the arbitration clause and not be referred to arbitration. "

( 4 ) CLAUSES 9. 2, 11. 3 and 21. 5 of Special Conditions of Contract are as under :-"9. 2. No material price variation or wages escalation on any account whatsoever and compensation for "force Majeure" etc. shall be payable under this contract. 11. 3. No claim whatever will be entertained by the Railway on a/c of any delay or hold up of the works arising out of delay in suply of drawings, changes, modifications, alterations, additions, omissions, omissions in the site layout plans or detailed drawings or designs and or late supply of such materials as are required to be arrnaged by the Railway or due to any other factor on Railway Accounts. 21. 5. No claim for idle labour and/or idle machinery etc. on any account will be entertained. Similarly no claim shall be entertained for business loss or any such loss. "

( 5 ) CLAIMS numbers 3 to 6 whereon reference is sought for by the respondent to the Arbitrator are as under :-3. There occurred tremendous increase in cost of building materials. 52 Nos. of piles were bored after the expiry of stipulated completion period and particularly when the prices were too high. Additional cost incurred @ Rs. 250. 00 for these 42 Nos. of piles may please be paid. This has also been verified by your staff at site, Rs. 250 x 42 Rs. 10500/ -. 4. Piling rig with diesel driven wench, mixture, machine, driving pipe, wheel barrows, hoppers and other tools and plants remained idle at site for 24 months, i. e. for 75 days. The entire machinery was procured from the market on hire charges. Rent was paid @ Rs. 1070. 00 per day for this machinery. Hire charges amounting to Rs. 80,250.