INDIAN RARE EARTHS LTD Vs. UNIQUE BUILDERS LTD

JUDGEMENT

(1.) The appellant has preferred this appeal by special leave against the impugned judgment and order dated 05.08.2005 passed by the High Court in ARBA No.2 of 2002 dismissing the appeal and civil revision filed by the parties against the order dated 29.04.2002 passed by the 1st Additional Civil Judge (Senior Division), Cuttack, in Misc. Case No.78 of 2000 dismissing the application filed by the present appellant under section 30 read with section 33 of the Arbitration Act, 1940 (for short the 'Act'), for setting aside the Award passed by the learned Arbitrator in Misc. Case No.671/93(117/83) dated 19.12.1996.

(2.) The facts of the case lie in narrow compass.

(3.) The appellant being a government company, entered into a works contract with the respondent-company for structural steel and cladding work for 4 bulk warehouses. The work was to be completed within 18 months from the date of the award of the work order i.e. 14.12.1979. A contract was signed between the parties wherein there was a provision for arbitration in case of dispute that may arise between the parties. From perusal of general conditions of the contract, we found that there was a clause to the effect that any increase in statutory levies such as taxes and duties and statutory increase in steel prices shall be paid by the appellant. Before the work was completed, a dispute arose and ultimately, the same was referred to the Arbitration.