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2015 Supreme(MP) 799

RAJENDRA MENON, SUSHIL KUMAR GUPTA
State of Madhya Pradesh – Appellant
Versus
Tirupati Buildcon Private Limited – Respondent


Advocates:
Advocate Appeared:
For the Appellant:Sanjay Dwivedi, Learned Deputy Advocate General.
For the Respondent:V.R. Rao, Learned Senior Advocate and N. Jauhari, Advocate.

ORDER :

1. As common questions of law and facts are involved in all these appeals filed by the State Government under Section 37 of the Arbitration and Conciliation Act, 1996, they are being disposed off by this common order.

2. Respondent M/s. Tirupati Buildcon Pvt. Ltd. was granted a contract for the purpose of widening of two lane roads strengthening over various portions of National Highway No. 78 on the basis of an agreement entered into between the parties. The agreement in question contemplated a provision for its completion within 12/14 months and it is an admitted position that in Arbitration Appeal Nos. 42 of 2014 and 43 of 2014, the work was not completed within the stipulated period and therefore, after due approval from the competent authority, extension of time was granted. In Arbitration Appeal No. 44 of 2014 also, the work could not be completed within 12 months. It was completed within a period of 17 months and 27 days and in this case also, approval was granted. For the work done during he extended period, the contractor claimed escalation in the cost price for execution of the work and when the same was rejected by the Departmentally Adjudicating Authority in accor











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