STEEMANLTD Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) On a close and careful scrutiny of the facts we find that the dispute in these matters lies in a very narrow compass, but long-winding arguments were addressed by referring to matters which have no real relevance to the actual disputes in these matters.

(2.) The brief facts leading to the filing of these two matters are the following: The work of construction of Sitia Bridge over River Ravi at Champa was awarded after negotiation to the applicant/petitioner (M/s Steeman Ltd. ) on 31/12/1969. We are not giving details as they are not necessary. As there was some dispute between the parties regarding the progress of the work and payments for the same, the petitioner Company submitted disputes/ differences for adjudication by an arbitrator as per clause 29 of the agreement. While so, the Executive Engineer, Champa Division imposed penalty of Rs. 63,000. 00 in addition to rescinding the contract on 5/7/1971. Against the order rescinding the contract and imposing penalty, the petitioner Company successfully appealed to the government of Himachal Pradesh. Consequently, the Company was allowed to proceed with the work and the disputes were referred to an arbitrator.

(3.) As the arbitrator originally appointed was not acceptable to the petitioner Company, one Mr. R. K. Sarkar was appointed as arbitrator by mutual consent of parties. The said arbitrator entered upon the reference.