IN THE HIGH COURT OF MADHYA PRADESH
VIVEK RUSIA AND AMAR NATH KESHARWANI, JJ.
P. D. AGARWAL AND CO. LTD., INDORE – APPELLANT
Versus
STATE OF M. P. AND ANOTHER – RESPONDENT
Civil Rev. No. 765 of 2002
Decided On : 07-09-2022
M.P. Madhyastham Adhikaran Adhiniyam - Dissatisfaction with Arbitration Tribunal Award - Group-1 and Group-2 work - Claim for additional work and interest - Rejecting claim No. 2 - Interpretation of clause 4.3.13.3 - Dismissal of Civil Revision
Fact of the Case:
The applicant, a partnership firm, claimed Rs. 69,92,955 under M.P. Madhyastham Adhikaran Adhiniyam for executing additional work and interest. The Tribunal rejected claim No. 2, leading to the Civil Revision.
Finding of the Court:
The court found that the applicant was not entitled to claim under clause 4.3.13.3 as the work of Group-1 was accepted as additional work of Group-2 under the same terms and conditions. The Tribunal's decision was upheld, and the Civil Revision was dismissed.
Issues: Interpretation of clause 4.3.13.3 for additional work claim, acceptance of additional work as per terms and conditions, and rejection of claim No. 2.
Ratio Decidendi: The applicant's acceptance of Group-1 work as additional work of Group-2 under the same terms and conditions precluded the claim under clause 4.3.13.3. The court upheld the Tribunal's decision based on the terms of the agreement and the applicant's acceptance of the additional work.
Final Decision: The Civil Revision was dismissed, affirming the rejection of the claim for additional work and interest.
ORDER
VIVEK RUSIA, J. :—
The applicant has filed the present Civil Revision under section 19 of the M. P. Madhyastham Adhikaran Adhiniyam, 1983 being dissatisfied with the award dated 30-4-2002 passed by M. P. Arbitration Tribunal, Bhopal in Ref. Case No. 97 of 1995.
2. Respondents invited Notice Inviting Tender (In short “NIT”) for the following work :—
3. The applicant submitted bids for both groups 1 and 2 and found success for the Group-2 work for an estimated value of the contract of Rs. 59.11 Lakhs. Vide letter dated 16-2-1993 the applicant was communicated about acceptance of tender. Thereafter agreement No. 25/92/93 was executed between the parties on 23-3-1993 followed by a work order dated 23-3-1993. The stipulated period of the contract of 9 months excluding 3 months of the rainy season. Although the actual date of completion was 22-3-1994 it was completed on 26-8-1994. The date of the second and final bill was paid on 23-11-1994 to the applicant.
4. The applicant approached under section 7 of M.P. Madhyastham Adhikaran Adhiniyam, 1983 claiming the amount of Rs. 69,92,955/- contending that the Group -1 work was initially awarded to M/s Manikchand Ajmera who failed to complete the work, thereafter the process of re-tendering was initiated in which the applicant and one O. P. Mittal participated. The applicant was found L-2, accordingly, work was awarded to O. P. Mittal who also failed to complete the work. The applicant offered that he is ready to work on Group-1 because, without completion of Group-1, Group-2 cannot be started and completed. Vide letter dated 28-10-1993, the Superintending Engineer, Khargone rejected the offer of the applicant and asked to carry out Group-1 work as additional and extra work under the relevant terms and conditions of Group-2 work. The applicant accepted the aforesaid offer with three conditions namely; (1) Escalation, (2) Extension of completion period up to 31-7-1994 and; (3) this offer would be valid for 45 days.
5. Vide letter dated 9-12-1993, the Executive Engineer rejected the aforesaid offer. Accordingly, vide letter dated 3-12-1993, the applicant agreed to withdraw the aforesaid conditions and agreed to work with Group-1 as additional work as per the terms and conditions of Group-2. Vide letter dated 6-1-1994, respondents accepted the offer and directed the applicant to complete the work of Group-1 and Group-2. The applicant completed the work on 18-6-1992 and thereafter final bill was paid on 23-11-1994.
6. By way of Ref. Case No. 87/1995, the applicant claimed Rs. 69,92,955/- under the following claim :—
7. The applicant claimed Rs. 7,31,006/- towards the escalation because Group-2 work was delayed because the work of Group-1 was not completed in time by the earlier contractors. Claim No. 2 for Rs. 35,28,818/- was based on extra work under clause 4.3.13.3 (c). According to the applicant by executing the work of Group-1 quantity exceede
The main legal point established in the judgment is the importance of adhering to the terms of the contract, including the dispute resolution mechanism, and the court's limited revisional powers in i....
The court upheld the Tribunal's award, emphasizing limited grounds for interference under Section 19, confirming the Tribunal's jurisdiction and decision-making process regarding construction claims.
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