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2009 Supreme(Online)(KER) 438

HIGH COURT OF KERALA
J.B. KOSHY, ACJ, P.BHAVADASAN, J
P.DIVAKARAN – Appellant
Versus
UNION OF INDIA – Respondent


Advocates:
MR.MEIJO KURIAN PUVATHINGAL, SMT.PREMY MEIJO, MR.BOBY JOHN, CGC, SMT.K.MEERA

JUDGMENT

K oshy, Ag.C.J.

Appellant/petitioner entered into a contract with the second respondent for construction of Central School etc.. Ext.P11 is clauses of contract. Petitioner has not completed the contract within the stipulated time. Time was extended for eight months. Still petitioner was not able to complete the contract and the contract was terminated and there was dispute regarding the payment due to the petitioner. Because of the abandonment of the work and delay in completion of the work, the work has to be re-tendered on a higher cost. As per the provisions of the arbitration, an amount of Rs.3,29,058/= with interest was awarded to the petitioner. A counter claim of Rs.65 lakhs including claim for the contract being terminated at the risk of the petitioner was rejected by the Arbitrator. The arbitration award was not challenged and it was implemented. Even though claim for liquidated damages was raised by the respondents before the Arbitrator, since it was not an arbitrable issue as per the contract conditions, no award was passed for the liquidated damages by the arbitrator. Thereafter, Superintending Engineer demanded W.A.1534/2007 2 liquidated damages. Since that was

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