U P COOPERATIVE FEDERATION LTD Vs. THREE CIRCLES

JUDGEMENT

(1.) On or about 14th of December, 1983, a tender was floated by the U.P. Cooperative Federation Ltd. (hereinafter referred to as "the Federation") for construction of 4000 Metric Ton cold storage at Vashi, New Mumbai. The tender document mentioned the time of completion as twelve months. M/s Three Circles - the respondent herein, submitted a tender to get the contract. In the year 1984, a contract was executed with M/s Three Circles. Clause 10[f] of the Contract Agreement reads as follows:

(2.) The respondent was given extension of time for execution and completion of the project pursuant to Clause 13 of the General Conditions of Contract. It may be kept on record that Clause 32 clearly postulates that the extended time was also to be the essence of the contract. After the expiry of stipulated period of time, the respondent submitted certain claims to the Managing Director of the appellant in terms of Clause 10 of the Contract. A compensation of Rs. 87,000/- was awarded to the respondent. In this connection, it may be stated that the respondent had also suspended work for some time.

(3.) The respondent thereafter filed a suit being Arbitration Suit No. 3212 of 1986 before the High Court of Bombay under Section 20 of the Arbitration Act, 1940 [in short "the Act"] praying for appointment of an Arbitrator. By an order dated 7th of January, 1988, the High Court appointed one Shri N.N. Shrikhande as the sole Arbitrator to decide the disputes raised by the parties. Subsequently, the appellant filed a notice of motion praying for setting aside the order of appointment dated 7th of January, 1988 and also prayed for stay of the arbitration proceedings. The said notice of motion was, however, dismissed by the High Court. The appellant filed an appeal which was also dismissed on the ground of delay.