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1979 Supreme(Del) 258

D.K.KAPUR
VILAYATIRAM MITAL – Appellant
Versus
UNION OF INDIA – Respondent


Advocates Appeared:
P.N.Kumar, REKHA SHARMA

D. K. Kapur

( 1 ) [petitioner Constructed a Govt. hospital which was Completed on 25. 4. 75. Some deductions were made from his running bill, and in last bill of 18-9-76, a sum of Rs. 5171. 11 was demanded from him. By letter dt. 5-1-77, he demanded reference, to arbitation, dispute about his claims for Rs. 1,40,000. 00 On failue, he applied to Court u/s 20. The defence was that claims were barred by time as these were not made within 90 days as required by clause 25 of the Contract. The Court found this clause some what obnoxious. ] It observed. (6) This clause States that if contractor does not demand arbitration within 90 days of receiving information from the Government that the bill is ready for payment, the claim will stand waived. The question that is puzzling is which is the bill and when it is ready for payment. I would understand a case if the date of the bill was fixed by the contract but that is not so. Reference has been made to clause 8 of the contract which shows that a monthly bill hasj to be submitted and then a final bill. Assuming, the dispute relates to the first bill or the third bill, and so on, it would indicate that a demand for arbitration has to be made wit











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