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LOKESHWAR SINGH PANTA, R.V.RAVEENDRAN
STATE OF RAJASTHAN – Appellant
Versus
FERRO CONCRETE CONSTRUCTION PVT. LTD. – Respondent
Question 1? Question 2? Question 3?
Key Points: - The arbitrator's jurisdiction and validity of appointment when the appointing authority did not refer disputes explicitly (!) - Whether certain awards (notably Claim No. 1 and Claim No. 37A) were liable to be set aside for legal misconduct or error apparent on the face of the award, including misapplication of contract terms and improper reliance on mortgage/status of mobilization advance (!) (!) (!) (!) (!) - The appropriate rate and period of interest on awards under the old Arbitration Act (1940) and the Interest Act, 1978, including pre-reference, pendente lite, and future interest, and the legality of awarding 18% interest in such cases, with the Court reducing to 9% for pre-reference, pendente lite, and future periods (!) (!) (!)
Judgment
R. V. Raveendran, J.
Leave granted. Heard learned counsel.
The appellants ('the employer') invited tenders for the manufacture, laying, testing and commissioning of water pipeline of a length of 37.41 km. under a water supply scheme in Ajmer District. Tenders were received from various tenderers including respondent (hereinafter referred to as 'the contractor'). As different tenderers had stipulated different terms and conditions, the tenderers were invited for discussions, and Common Terms of Reference (for short 'CTR') were formulated on 22.02.1988 and the original tender conditions stood modified to the extent of the alterations in the CTR.
Thereafter, the offer of the respondent was accepted and a work order dated 23.08.1988 was issued to him stipulating the period for completing the contract as two years from that date. There was an amendment to the work order on 08.11.1988. The employer and the contractor entered into an agreement dated 11.01.1989 enumerating and stipulating the documents which will form part of the contract and the modifications agreed in regard to certain terms. The value of the work as per the work order was Rs. 9,91,94,602.50. Ten per cent of the
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