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2008 Supreme(Raj) 91

(Supreme Court)
Honble H.K. SEMA, J. Honble G.P. MATHUR, J. Honble R.V. RAVEENDRAN, J.
J.C. Budhraja - Appellant
Versus
Chairman, Orissa Mining Corporation Ltd. & Anr. - Respondents
Civil Appeal No. 1971-1973 of 2000
Decided On : January 18, 2008

Advocates Appeared:
A.K. Panda, T.S. Doabia, Sr. Advocates, Rutwik Panda, Mridual Aggrawal, for Appellant; C.S. Vaidyanathan, Sr.Advocate, K.V. Viswanathan, Rajeev Singh, Anup Kumar Singh, for Respondents

Headnote:(a) Limitation Act, 1963, Sec. 18 – Extension of limitation period – Acknowledgment of pending claims – Some payment made out of pending claims – Held – Limitation would get extended by three years from the date of payment and at all events by three years from the date of letter of acknowledgment in writing – An acknowledgment made with reference to a liability cannot extend limitation for a time barred liability.(Paras 15 & 16)

        ¼d½ ifjlhek vf/kfu;e] 1963] /kkjk 18 & ifjlhek vof/k dk foLrkj & yfEcr nkoksa dh vfHkLohd`fr & yfEcr nkoksa esa ls dqN Hkqxrku fd;k x;k & vfHkfu/kkZfjr & fyf[kr vfHkLohd`fr i= dh frfFk ls rhu o"kZ rd lHkh nkkvksa esa ,oa Hkqxrku dh frfFk ls rhu o"kZ rd ifjlhek vof/k c< tk;sxh & nkf;Ro ds lUnHkZ esa dh xbZ vfHkLohd`fr dky oftZr nkf;Ro dh ifjlhek ugha c<k ldrhA ¼in la[;k 15 o 16½

       (b) Arbitration Act, 1940, Sec. 8(2), 30 and Limitation Act, 1963, Sec. 18 – Acknowledgment of pending claims – Period of limitation for filing petition seeking appointment of arbitrator – Limitation extended only in regard to liability which was acknowledged – No liability arises for future claims – Fresh claim made for the first time before arbitrator – Held – Finding of arbitrator that the entire claim was within limitation period is an error apparent on the face of record and legal misconduct – Arbitrator awarding more than what was claimed in the claim petition can be said to have committed legal misconduct – Award made in excess of claim and in respect of fresh claims liable to be set aside.(Paras 22, 23, 26 & 28) Appeal partly allowed.

        ¼[k½ ek/;LFke vf/kfu;e] 1940] /kkjk 8¼2½] 30 ,oa ifjlhek vf/kfu;e] 1963] /kkjk 18 yfEcr nkoksa dh vfHkLohd`fr & ek/;e dh fu;qfDr pkgus okyh ;kfpdk nk;j djus gsrq ifjlhek vof/k & dsoy ml nkf;Ro ds lEcU/k esa gh ifjlhek dk foLrkj fd;k x;k ftls vfHkLohd`r fd;k x;k & Hkkoh nkoksa gsrq dksbZ nkf;Ro mRiUu ugha gksrk & ek/;LFk ds le{k igyh ckj u;k nkok fd;k & vfHkfu/kkZfjr & ek/;LFk dk ;g fu"d"kZ fd lEiw.kZ nkok ifjlhek vof/k ds Hkhrj Fkk vfHkys[k dks ns[krs gh Li"V gksus okyh =qfV vkSj fof/kd vopkj gS & nkok ;kfpdk esa ftruk nkok fd;k mlls vf/kd vuqrks"k ek/;LFk }kjk iznku djus dks fof/kd vopkj dkfjr djuk dgk tk ldrk gS & nkos ls vf/kd ,okMZ nsuk vkSj og Hkh u;s nkos ds lEcU/k esa vikLr djus ;ksX; gSA

        ¼in la[;k 22, 23, 26o 28) vihy va-kr% Lohdkj dhA

Honble RAVEENDRAN, J.–These appeals are filed against the common judgment dated 15.10.1999 passed by the High Court of Orissa in Misc. Appeal No.296/1998 filed by the respondents and Misc. Appeal No.198/1998 and Civil Revision No.109/1998 filed by the appellant.

(2). The appellant is stated to be legal heir and successor in interest of N.C. Budhraja (hereinafter referred to as the contractor). M/s. Orissa Mining Corporation Ltd. (for short OMC or respondent) entered into an agreement dated 16.9.1967 (Agreement No.30/F-2) for removal of over-burden at Kaliapani (Cuttack District) by excavation in all kinds of soil (including stoney earth and gravel mixed with boulders), and depositing/disposing of the same, as directed. The maximum lift was 6m including initial lift of one metre. The order to commence work was issued on 23.9.1967. Parties also entered into three supplementary agreements in regard to the said contract No.30/F- 2, on 2.8.1969, 7.3.1970 and 10.2.1972. (Note : OMC had also entered into other contracts with the contractor including contract dated 22.2.1968 (Contract No.2/F/2) for raising Chrome Ore by open excavation from the said mining area. We are not concerned with those contracts in these appeals).

(3). The main agreement enumerated two items of work in its schedule. The first, second, and third supplementary agreements enumerated respectively eight items, one item and four items in their respective schedules. The work was completed by the contractor on 15.6.1975. The final bill in respect of the work was prepared by OMC on 21.10.1976. It was revised in March-April 1977 by OMC. The final Bill It showed the total value of the work done (under several items in the schedule to main and three supplementary agreements) as Rs.1,49,190,76.74. The contractor countersigned the said bill on 14.4.1977 under protest, but, however, certified and confirmed that the measurements shown therein were correct.

(4). According to the contractor, having regard to the zig-zag route by which the over burden had to be carried, the actual lead was much longer and actual lift was much higher than what were stipulated in the agreement. He contended that the amounts shown as due for the work done was as per contract rates which was for removing overburden to the extent of lift and lead provided in the contract schedules; and at several places, he had to cut and remove the over-burden beyond the extent of lift and lead provided in the contract, and he should be paid for such extra leads and lifts. He claimed to have executed certain additional works not provided in the contract schedules, on the directions of OMC. He therefore represented that the matter may be examined and enquired into for determination of proper amounts due. In view of the several representations made by the contractor in respect of the contract no.30/F-2 as also other contracts, OMC sent the following letter dated 28.10.1978 to the contractor:-

"Re : Settlement of pending claims.

You had called on Chairman, OMC, recently and apprised him of the dues receivable by you in respect of certain long pending matters such as mine benches work and raising at Kaliapani Quarry-I. In the matter of Kaliapani it has been decided to constitute a committee which will go separately into your claims and other facts, in which connection you are requested to give all possible help and assistance, so that your dues, if any, will be ascertainable.

In regard to other pending matters, you had indicated yourself that you will give the details of claims and payment received by you. This may be given within a day or two so as to enable OMC to settle up the above at the earliest."

(5). The contractor sent a reply dated 16.11.1978 enclosing therewith a statement quantifying his claims relating to contract no. 30F-2 (subject matter of these appeals) as also another contract (no. 2F-2). A Committee was constituted by OMC to scrutinize and recommend on the admissibility of the claims made by the contractor i










































































































































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