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2001 Supreme(AP) 309

Andhra Pradesh High Court
Judges : S.B.SINHA
Y.Babu Rao - Appellant
Versus
Union of India, rep.by General Manager, South Central Railway - Respondent
Decided On : 03-23-01

Headnote:

Arbitration and Conciliation Act, 1996 - Section 11 and Section 16 (1) - Appointment of a sole arbitrator for adjudication - applicant submitted the tender - contends that he has successfully completed the work within the time - Applicant submitted tender for a sum which was accepted - Applicant contends that he has successfully completed the work within the time extended by respondent-authorities and executed more than stipulated original contract – Held, Even otherwise we feel that once parties have arrived at a settlement respect of any dispute or difference arising under a contract and that dispute or the difference is amicably settled by way of a final settlement by and between parties unless that settlement is set aside in proper proceedings as regards jurisdiction of the arbitrator can also be adjudicated upon by him having regard to conduct of the parties Court is of the opinion that as a new agreement has been entered into arbitration clause has perished - Appeal dismissed

S. B. SINHA, J.

( 1 ) IN this application under Section 11 of the Arbitration and Conciliation Act, 1996 the applicant herein has prayed for appointment of a sole arbitrator for adjudication of the claims specified in his letter dated 28-1-2000. The said arbitration agreement is contained in a contract agreement bearing No. 08/cao/c/sc/98, dated 16-1-1998 entered into by and between the applicant and the respondents herein. Admitted fact of the matter is that the respondents called for the tenders for the work of gauge conversion of CLM-VSG section from meter-gauge to broad-gauge and proposed construction of side drains and road work in MPT yard at Vasco station, the estimated value whereof was rs. 24,61,000/ -. The applicant submitted the tender for a sum of Rs. 19. 77,910. 00 which was accepted. The applicant contends that he has successfully completed the work within the time extended by the respondent-authorities and executed 25% more than stipulated in the original contract.

( 2 ) HE had raised ten claims for a total sum of Rs. 1,12,97,951. 00. Despite demand the claim of the applicant was not considered whereafter a lawyer s notice dated 8-5-2000 was served.

( 3 ) THE arbitration clause contained in clause 64 of the General Conditions of contract which admittedly forms part of the contract reads thus:"64 (1) (i) Demand for Arbitration: in the event of any dispute or difference between the parties hereto as to the construction or operation of this contract, or the respective rights and liabilities of the parties on any matter in question, dispute or difference on any account or as to the withholding by the Railway of any certificate to which the contractor may claim to be entitled to, or if the railway fails to make a decision within 120 days, then and in any such case, but except in any of the excepted matters referred to in clause 63 of these conditions, the contractor, after 120 days but within 180- days of his presenting his final claim on disputed matters, shall demand in writing that the dispute or difference be referred to arbitration. 64 (1) (ii) The demand for arbitration shall specify the matters which are in question or subject of the dispute or difference as also the amount of claim item-wise. Only such dispute (s) or difference (s) in respect of which the demand has been made, together with counter claims or set off shall be referred to arbitration and other matters shall not be included in the reference. 64 (1) (ii) (a) The arbitration proceeding shall be, assumed to have commenced from the day, a written and valid demand for arbitration is received by the Railway. (b) The claimant shall submit his claim stating the facts supporting the claims along with all relevant documents and the relief or remedy sought against each claim within a period of 30 days from the date of appointment of the Arbitral Tribunal. (c) The Railway shall submitted its defence statement and counter claim (s), if any, within a period of 60 days of receipt of copy of claims from tribunal thereafter, unless otherwise extension has been granted by Tribunal. 64 (1) (iii) No new claims shall be added during proceedings by either party. However, a party may amend or supplement the original claim or difference thereof during the course of arbitration Proceedings subject to acceptance by Tribunal having due regard to the delay in making it. 64 (1) (iv) (IF the Contractor (s) does/ do not prefer his/their specific and final claims in writing, within a period of 90 days of receiving the intimation from the Railways that the final bill is ready for payment, he/they will be deemed to have waived his/their claim (s) and the Railways shall be discharged and released of all liabilities under the Contract in respect of these claims".

( 4 ) THE claims of the applicant are:

Claim No. 1 :



Continue maintenance of labour set up due to prolongation of contract.



(Authority : Law relating to building and engineering contracts in India page No. 639)



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