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1991 Supreme(AP) 467

Andhra Pradesh High Court
Judges : IYYAPU PANDURANGA RAO
National Thermal Power Corporation Ltd - Appellant
Versus
P.K.Ramaiah and Company - Respondent
C.R.R.Nos. 838 & 839/90
Decided On : 10-31-91
Advocates Appeared :
Mr. K. Srinivasa Murthy,Mr. R. Venugopal Reddy

Headnote:ARBITRATION ACT, Section 2 -Contractor accepting and receiving amounts in full and final settlement of claim under the contract - Arbitration clause in the contract does not survive

       Held : In this case, there was nothing to be arbitrated upon between the parties as the amount was received by the contractor in full and final settlement of the claim without any protest or even without any allegation that the said payment was received under coersion, mistake, mis-representation, without prejudice or under protest Therefore, there is nothing to be arbitrable under the agreement

IYYAPU PANDURANGA RAO, J.

( 1 ) C. R. P. No. 838 of 1990 is a revision against the order dated 6th December, 1989 in O. P. No. 166 of 1988 on the file of V Additional Judge, City Civil court, Hyderabad appointing Sri Justice P. Chennakesav Reddi, retired Chief justice, Gowhati High Court as sole arbitrator to adjudicate the disputes between the parties. Similarly C. R. P. No. 839 of 1990 is a revision against the order dated 6th December, 1989 in O. P. No. 167 of 1988 on the file of the V addl. Judge, City Civil Court, Hyderabad appoint Sri Justice P. Chennakesav reddi, retired Chief Justice, Gowhati High Court as sole arbitrator to adjudicate the disputes between the parties.

( 2 ) SINCE the parties in both the revisions are the same and since the points that arise for consideration in both the matters are also similar, both matters are heard together and they will be disposed of by a common judgment

( 3 ) THE points that arise for consideration in both the revisions are1) Whether the arbitration clause in the contract subsists in view of the contention of the revision petitioners that the first respondent received the amounts in full and final settlement of the claim under the contract in question?2) Whether in any event the claim is in time?3) In any event whether an arbitrator outside the arbitration clause be appointed?4) To what relief?

( 4 ) POINT No. 1: Most of the facts which are not in dispute in both the matters are the following:

( 5 ) MANAGER, Contract services. National Thermal Power Corporation limited, New Delhi called for tenders for the work of "civil Works for C. W. System Part-II Construction of Earth Dam (Reach No. IV) from R. D. 5533 to r. D. 9100 for Ramagundam Super Thermal Power Project, Karimnagar district, Andhra Pradesh. The respondent by his letter dated 18-3-1980 tendered for the said work which was accepted. The total value of the said contract was Rs. 3,00,30,050-00. Admittedly the work was completed in all respects by 15-3-1984 and handed over the Reach duly fulfilling the commitments and payments were made to the first respondent. Alleging that the first respondent is entitled to additional amounts, the first respondent had a prolonged correspondence with. the officers of the N. T. P. C. and since the said correspondence did not evoke any response, the first respondent sought to invoke the arbitration clause embodied in the agreement Since even then the correspondence from the N. T. P. C authorities was not positive, the first respondent filed O. P. No. 167/88 for the appointment of an arbitrator. The N. T. P. C. opposed the application alleging that the amounts were received by R-1 in full and final settlement of the agreement and hence there was no cause of action for the 1st respondent The N. T. P. C. has further averred that in any event, the claim was barred by limitation and has also taken the contention that no arbitrator outside the purview of the arbitration clause be appointed. Rejecting the objections raised by N. T. P. C. the learned V Additional judge, City Civil Court, Hyderabad appointed Sri Justice P. Chennakesav reddi, former Chief Justice of Gowhati High Court as the sole arbitrator and aggrieved by the same C. R. P. No. 839/90 is filed Similarly the first respondent accepted the letter of the intent of N. T. P. C. dt. 7-2-1979 for the work of side preparation including site levelling and grading for Ramagundam Super thermal Power Project, Karimnagar district, Andhra Pradesh. The value of the said contract is Rs. 1,74,33,3347 -. R-1 finally completed the work by 24- 12-1990 and payments were made to R-1 regarding the said work. But the petitioner addressed series of letters to the N. T. P. C authorities alleging that certain amounts are still outstanding from the N. T. P. C. and the N. T. P. C. replied that there was nothing outstanding to R-l from the N. T. P. C. regarding the work in question. Since the contract embodies an arbitration clause, R-1 filed O. P. NO. 166/88 for the










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