State of Sikkim and Ors. vs Chhabil Dass Agarwal

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Sikk) 13

HIGH COURT OF SIKKIM
State of Sikkim and Ors. – Appellant
Versus
Chhabil Dass Agarwal – Respondent

Judgment :

Bhaskar Raj Pradhan, J.

This is an appeal under section 37 of the Arbitration and Conciliation Act, 1996 (the Arbitration Act).

2. The facts pertinent for disposal of the present appeal can be briefly summarised as under:

(i) The appellants and Chhabil Dass Agarwal (the respondent) had entered into a contract agreement dated 24.02.2004 for construction of 2x5MVA, 66/11KV substation with LILO from Phodong 66KV S/S and Meyong- C-Power House at Mangan. The work had to be completed within four months but due to several factors, it could be done only on 18.02.2008. The work value was initially for Rs.7,79,33,000. Admittedly, on 28.04.2004 and 09.11.2004 mobilization advances for Rs.1,00,00,000/- and Rs. 94,83,250/- respectively, were paid to the respondent. Although, the work was completed on 18.02.2008, the respondent did not receive full and final payment on the said date. According to the respondent, on 16.02.2006, he received Rs.2,76,44,048/- for civil works. Thereafter, for electrical works, he received Rs.1,76,00,000/- on 14.10.2011 and Rs.91,00,000/- on 02.11.2011. According to the respondent, on 31.03.2017 he received final payment of Rs.3,77,67,688/- after entering into