VISAKHAPATNAM PORT TRUST Vs. CONTINENTAL CONSTRUCTION COMPANY

JUDGEMENT

(1.) BOTH these appeals by special leave, arise out of one and the same judgment dated 26th April, 2002 rendered by the High Court of Judicature Andhra Pradesh whereby it allowed the two appeals being CMA No. 1559/1994 and CMA No. 77/1995.

(2.) FOR the sake of convenience, we shall refer the appellant -Visakhapatnam Port Trust, "vpt" and the respondent - M/s continental Construction Company, "the Contractor".

(3.) IT is pertinent to notice here that until the rejection of claim made by VPT for Rs. 9,65,155/- towards the cost of 950 jack rods vide award dated 23rd March, 1980, the contractor did not raise any dispute with regard to recovery of Rs. 74,810. 38 made by VPT on 8th August, 1974 from the contractor's running bill no. 21. It was only thereafter, to be specific on 27th March, 1980 that the contractor called upon VPT to release the sum of Rs. 74,810. 38. Then on 22nd of September, 1984, the contractor initiated proceedings under the Act, 1940 in respect of claim of rs. 74,810. 38 by appointing its arbitrator and also called upon VPT to appoint its arbitrator. The arbitrators entered upon the reference on 1st February, 1985 and they also appointed an Umpire. The contractor filed its statement of claim before the arbitrators on 16th march, 1985. The arbitrators by their award dated 27th October, 1985 accepted the claim of the contractor and passed an award for rs. 74,810. 38 in favour of the contractor.