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2001 Supreme(MP) 116

2001 (2) JLJ 19
(SUPREME COURT)
S. Rajendra Babu and K.G. Balakrishnan, JJ.
Manocha Construction Co. v. State of M.P. and others
Civil Appeal No. 11031 of 1996; against the order of M.P. High Court
passed in C.R. No. 11 of 1987; Decided on 16.2.2001.

Advocates:
S.B. Sanyal and G.L. Sanghi for appellant; Krishnan Venugopal with
Uday Tiwari for respondents.

Headnote:Madhyastham Adhikaran Adhiniyam, 1983 (M.P.) -- Ss. 2(i), 16 and 19-- works contract -- award set aside by High Court and case remanded to pass fresh award -- fact that previous award was for higher rate is immaterial d`rate prevailing at the time of execution of work rightly awarded -- High Court rightly declined to interfere in fresh award under its revisional jurisdiction. [Paras 10 & 11

       Ekk/;LFke~ vf/kdj.k vf/kfu;e] 1983 ¼e-ç-½&/kkjk 2¼d½] 16 rFkk 19&ladeZ lafonk&iapkV] mPp U;k;ky; }kjk vikLr rFkk ekeyk ubZ iapkV ds fy, çfrçsf"kr&iwoZorhZ iapkV vf/kd nj dk gksus dk rF;] egRoghu gS&dkZ fu"iknu ds le; pkyw nj Bhd&gh vf/kfu.khZr&mPp U;k;ky; }kjk viuh iqujh{k.k vf/kdkfjrk esa ubZ iapkV esa gLr{ksi ls badkj Bhd gh fd;k x;kA ¿iSjk 10 ,oa 11

JUDGMENT

Balakrishnan, J. -- 1. This appeal is directed against the judgment and order passed by the Division Bench of the High Court of Madhya Pradesh at Jabalpur in Civil Revision No. 296 of 1992 on 30.1.1996. By the impugned judgment, the Division Bench dismissed the said civil revision filed by the appellant under section 19 of the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983, challenging the award dated 16.3.1992 passed by the M.P. Arbitration Tribunal, Bhopal in Reference Case No. 11 of 1987.

2. The appellant, a construction company, entered into an agreement on 18.3.1982 with the respondent State of Madhya Pradesh, for the construction of a dam in Barchar Tank Project, in Sidhi District. The total cost of the construction was Rs. 1,22,19,779. As per the work order given to the appellant, the appellant was to complete the work within a period of 15 months. The appellant was, however, given several extensions and the last of such extension was to expire on 30.6.1987. Payments were made to the appellant during the course of the progress of the work. The total quantity of the earthwork to be done was 5,02,929 cubic metres. As per the contract, the appellant was also bound to do an additional 10% of the agreed earthwork at the rate given under the agreement. According to the appellant, more than 10% of the agreed quantity of the. earthwork was carried out and for the additional quantity of the earthwork .done, a claim was made by him @ Rs. 34.50 per cubic metre. The agreed rate for the earthwork was Rs. 15 per cubic metre. Dispute arose between the parties as to the rate payable for the additional quantity of the earthwork carried out and the matter was referred to the Arbitration Tribunal. The Tribunal passed an award on 14.7.1988 and by this award the rate of Rs. 22 per cubic metre was fixed for the additional earthwork done by the appellant. Aggrieved by this award, the appellant preferred a civil revision (registered as CR No. 459 of 1988) before the High Court of Madhya Pradesh. The respondent State of Madhya Pradesh also filed Civil Revision No. 512 of 1988 against the said award of the Tribunal. Whereas the civil revision filed by the State was dismissed the revision filed by the appellant was remitted to the Tribunal with a specific direction, which is to the following effect:

"For the aforesaid reasons, the award of compensation for this extra work at Rs. 22 per cubic metre is hereby set aside and to that extent Civil Revision No. 459 of 1988 is allowed. Civil Revision No. 512 of 1988, filed by the State Government of M.P. and others is hereby dismissed. The matter shall go back to the Arbitration Tribunal, which 'Shall, after giving due opportunity to the parties, determine the amount of compensation payable to the contractor, i.e., M/s Manocha Construction Co., for the additional work done, in accordance with the provisions of clause 4.3.13.3 of the agreement. We affirm the finding of the Tribunal as to the contractor's entitlement to the compensation for this additional work done."

3. Pursuant to the above revisional order, the matter was again considered by the Arbitration Tribunal and a fresh award was passed on 16.3.1992. The Tribunal held that the work relating to the additional quantity of the earth was in respect of a temporary "bund" and the construction of the same was completed by November/December 1985. Therefore, in view of sub-clause (d) of clause 4.3 .13.3, the rate had to be fixed on the basis of the then prevailing market rate. On that basis the claim of the appellant was considered and it was held that the appellant was entitled to get at the rate of Rs 15.70 per cubic meter. The award thus passed by the Tribunal was challenged by the appellant before the High Court, but the Division Bench by its order and judgment as aforesaid, declined to interfere with the same Hence this appeal.

4. We heard the learned Senior Counsel, Mr. S.B. Sanyal for the appellant and also the counsel for the respo












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