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2017 Supreme(Gau) 786

IN THE HIGH COURT OF GAUHATI
Prasanta Kumar Deka, J.
Dhanoa Builders (M/S) – Petitioner
Versus
Union of India and another – Respondents
Arb.A. 16 of 2006
Decided On : 28-03-2017

Advocates Appeared:
For the Petitioner:Mr. T.C. Khetri, Mr. P. Mahanta and Mr. S.K. Jain, Advocates
For the Respondents:Mr. C. Baruah and Mr. S.P. Choudhury, Advocates

Headnote:

Arbitration and Conciliation Act, 1996 – Section 37(1) (c), 34 – Learned counsel, appearing on behalf of the appellant/petitioner, learned counsel, appearing for the respondents, the Union of India – An appeal under Section 37(1) (c) of the Arbitration and Conciliation Act, 1996 against the judgment and Order, passed in Misc. (Arbitration) Case by the learned District Judge, Sonitpur, Tezpur partly allowing an application under Section 34 of the Act of 1996 arising out of arbitral award pertaining to C.A. signed by the Sole Arbitrator – Present appellant entered into an agreement relating to provision of RCC Overhead Reservoir gallons capacity on 18 M Staging and Sedimentation Tank under Garrison Engineer, Tezpur and the said agreement was executed between the appellant and the Union of India represented by the respondent – As per the contract agreement, the respondents were required to make RAR payments from time to time as per progress of the work with the release of Schedule "B" Stores to the contractor to enable him to carry on the works –Held, Also the Union of India has claimed towards the extra expenditure incurred under the risk and cost contract – Therefore a sum of is due to the Union of India for the extra expenditure incurred under the risk and contract – But the Union of India took a lot of time to conclude risk and contract/and to complete balance work – It may please be noted that the subject contract was cancelled – Therefore, the risk and cost contract should have been concluded immediately latest by and from there within six month the balance works should have been completed – Thus extra expenditure to some extent could have been avoided." – Appeal has no merit and the same is dismissed.

JUDGMENT :

Prasanta Kumar Deka, J.

Heard Mr. P. Mahanta, learned counsel, appearing on behalf of the appellant/petitioner and Mr. S.P. Choudhury, learned counsel, appearing for the respondents, the Union of India.

2. This is an appeal under Section 37(1) (c) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act of 1996") against the judgment and Order dated 7.7.2006, passed in Misc. (Arbitration) Case No. 16/2004 by the learned District Judge, Sonitpur, Tezpur partly allowing an application under Section 34 of the Act of 1996 arising out of arbitral award pertaining to C.A. No. CEW/TEZ/06 of 1990-91 signed by the Sole Arbitrator on 25.10.2003.

3. The present appellant entered into an agreement No. CEW/TEZ/06 of 1990-91 relating to provision of RCC Overhead Reservoir of 25000 gallons capacity on 18 M Staging and Sedimentation Tank under Garrison Engineer, Tezpur and the said agreement was executed between the appellant and the Union of India represented by the respondent No. 2.

4. As per the contract agreement, the respondents were required to make RAR payments from time to time as per progress of the work with the release of Schedule "B" Stores to the contractor to enable him to carry on the works. The particulars of the contract as mentioned in paragraph 3.2 of the award are as follows:

(i)

CA No.

CWE/TEZ/06 OF 90-91

(ii)

Name of the Work

Provision of RCC Over Head Reservoir of 25000 gallons Capacity on 18 M Staging and Sedimentation Tank under GE, Tezpur.

(iii)

Date of issue of Tender

16 May, 1990

(iv)

Date of receipt of Tender

07/20/90

(v)

Date of acceptance of Tender

07/20/90

(vi)

Accepted amount

Rs. 14,10,561.33/-

(vii)

Date of Commencement

08/10/90

(viii)

Period of Completion

12 Months

(ix)

Date of Completion

08/09/91

(x)

Extended date of Completion

30 Jun 1995 (final extension)

(xi)

Extended date of Completion

06/30/95

(xii)

Date of Cancellation

22 Feb 1996 (w.e.f. 25 Feb 1996)

5. As per the terms and conditions of the agreement, the work was required to be completed on or before 9.8.1991. The work was accepted by extending the date of completion till 30.6.1995, terming the said as the final date of completion. However, Schedule "B" Stores was issued till 21.12.1995 i.e. beyond the extended date of completion.

6. Referring the dispute to an Arbitral Forum as per the contract agreement by the appellant, to which the respondent No. 2 also requested for referring the matter to the Arbitrator, the Chief Engineer, Shillong Zone, Spread Eagle Falls, Shillong appointed the Sole Arbitrator on 10.10.2000 enclosing therewith the claims of the parties.

7. While referring the matter to the Arbitrator vide letter dated 10.10.2000, the following claims/disputes were referred to for adjudication:-

"List Of Claims/Disputes

Description of the claims/items

Approx. Amount in Rupees.

A. Contractor's Claim

 

Claim No. 1

Amount against Work done not paid

501067.53

Claim No. 2

Interest

2,00,000.00

Claim No. 3

Loss of Profit

10,50,000.00

B Government's Claims

 

Claim No.1

Tentative amount of minus final bill on account of cancellation of contract and conclusion of risk & cost contract

4,26,434.00

Claim No.2

Cost of reference

30000

Claim No.3

Interest past pendent- elite and future

@ 22% p.a. (amount to be intimated later

8. The Arbitrator took up the following claims raised by the appellant/contractor:

1.

Claim No.1 (Amount against work done not paid)

Amount claimed :- Rs. 5,00,000.00

2.

Claim No.2 (Loss of profit)

Amount claimed :- Rs. 10,00,000.00

3.

Claim No.3 (Cost of storage shed taken over by the Union of India)

Amount claimed :- Rs. 30,000.00

4.

Claim No.4 (Interest)

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