Andhra Pradesh High Court
Judges : B.P.JEEVAN REDDY, V.NEELADRI RAO
State - Appellant
Versus
Associated Engineering Enterprises, Hyderabad - Respondent
C.MA.No. 684/85 & C.R.P. 1581/85
Decided On : 03-24-89
Advocates Appeared :
Mr. P. Ramachandra Reddy,Mr E. Ella Reddy
Held : In this case, according to Sec 55 of the Contract Act, it was open to the respondent (contractor) to avoid the contract on account of the Government s breach of promise to deliver the sites at a particular time, but, he did not do so and accepted the delivery of sites at a time other than agreed upon them earlier If so, he is precluded from claiming compensation for any loss occasioned by such delay, unless, of course, at the time of such delayed acceptance of the sites, he had given notice to the Government of his intention to claim compensation on that account Such a claim for compensation is barred by law, except in a particular specified situation, and inasmuch as such a particular specified situation is not present in this case, the claim is barred Therefore, the arbitrator has no power to award compensation as claimed by the Contractor, Clause 59 of the AP DSS specifically bars such a claim
CMA & CRP Partly Allowed
( 1 ) THE appeal and the Civil Revision Petition arise from a common judgment and order of the learned Subordinate Judge, Rajahmundry, making the award a rule of the Court and dismissing the petition filed by the appellant-State for setting aside the award.
( 2 ) AN agreement was entered into between the State of Andhra Pradesh and the respondent-contractor for execution of the work of constructing approaches to the rail-cum-road bridge across Godavari, at Rajahmundry. The agreement is dated 17-6-1970, and the value of the work is Rs. 70,29,925/ -. A period of 42 months was stipulated for completing the work, i. e. on or before 21-12-1973, the respondent actually completed the work by 10-12-1974 after the period of contract was extended twice. The first letter of the contractor requesting for extension was addressed on 17-12-1973. Extension was granted up to 31-5-1974. By another letter dated 22-7-1974 the contractor requested another extension till the end of August, 1974. It was granted subject to imposition of penalty of Rs. 50/- per day, after 1-9-1974.
( 3 ) AFTER the work was completed, disputes arose between the parties with respect to the amount payable to the respondent. They were referred to the sole arbitration of the Superintending Engineer, R and B, Cuddapah Circle, in accordance with the agreement. The arbitrator made his award on 25-3-1981. Apart from interest and costs, the respondent had preferred eight claims. The arbitrator awarded some or other amount under each claim. Claim No. 9 related to interest. The arbitrator awarded interest at the rate of 15% per annum from the date of award till the date of payment. So far as costs are concerned (claim No. 10), he directed the parties to bear their own costs.
( 4 ) THE award is a non-speaking one. It does not give reasons for the several amounts awarded under each of the claims. It reads as follows :-"now, I, Sri P. Vishnu Rao, Superintending Engineer, (Randb) Cuddapah Circle, Cuddapah, having taken upon myself the burden of reference and having examined and considered the statements of parties and arguments produced before me and having heard the parties, do here by make and publish this day my award in writing of and concerning the matter referred to me. Claim No. 1 :- This includes : (a) Compensation for delay in handing over site on Kovvur side involving Rupees 1,61,790. 93 towards escalation in price index and Rs. 1,65,150. 00 towards establishment and overhead charges. Total Rs. 3,26,940. 93, and (b) compensation by way of reimbursement for extra expenditure incurred to an extent of Rs. 14,330/- for removal and re-erection of the sheds, fencing etc. of railway contractors, Rs. 2,000/- for removal of caving in earth and forming temporary roads, and Rs. 30,000. 00 towards compensation paid to owners of buildings, huts, etc. in the area and dismantling the same on Rajahmundry side. Award : I award the respondents shall pay to the claimants Rs. 2,81,800/- (Rupees Two Lakhs Eighty One Thousand Eight Hundred only) towards this claim. Claim No. 2 : This includes : (a) Rs. 45,000. 00 towards refund of recovery made, and (b) Rs. 38,000. 00 towards reimbursement of expenditure incurred regarding load testing Total Rs. 83,000. 00. Award : I award that the respondents shall pay to the claimants under (a) and (b), a total sum of Rs. 83,000. 00 (rupees eighty three thousand only) towards this claim. Claim No. 3 : This comprises of Rupees 22,441. 00 towards cost of excavation of excess depth in foundations of Rajahmundry. Award : I award that the respondents shall pay the claimants Rs. 22,441. 00 towards the claim. (Rupees twenty two thousand four hundred forty-one only ). Claim No. 4 : This comprises of Rupees 2,000. 00 being the cost of expenditure incurred for the footpath slab extension and coaxial centring. Award : I award that the respondents shall pay the claimants Rs. 2,000. 00 (rupees two thousand only) towards this claim. Claim No. 5 : This compr
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