BHULLAR CONSTRUCTION Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) This civil revision is brought being aggrieved by the award dated 14.3.2018 passed in Reference Case No.12/2008 by the Chhattisgarh Madhyastham Adhikaran, Raipur, Chhattisgarh.

(2.) Brief facts of the case are these, that the applicant firm is a registered civil contractor firm. Work order was issued in favour of applicant for construction work of "Bhatapara-Lawan-Mahanadi-Road of length 22 km"?. Cost of work was Rs.575.13 lacs. Applicant deposited earnest money of Rs.2,88,000/-. After execution of formal agreement, the work was scheduled to start on 6.9.2005. Time allowed for completion of work was 18 months. Applicant also made security deposit of Rs.56,99,584/-. As per terms of agreement, progress of work could not be taken up at sufficient pace. Respondent No.3 issued show-cause notice to applicant on 5.4.2006 (just after six months from the date of issuance of work order). Thereafter, applicant was blacklisted by order dated 13.4.2006 by the respondents and contract was rescinded vide letter dated 22.4.2006. Reason assigned by respondents for blacklisting the applicant and rescinding contract is that the work done by applicant was not as per specification and quality of work was also very poor. Applicant has written letter dated 26.12.2006 to the Minister of Public Works Department alleging that the rescission of contract and the blacklisting of the applicant by the department is illegal. The Ministry referred the matter to the Technical Advisor of Public Works Department.

(3.) Applicant then preferred Writ Petition No.1469 of 2007 before this Court and this Court vide order dated 13.03.2007 allowed the petition and declared that act of rescission of contract and blacklisting of the applicant by the respondents was illegal. The Chief Engineer vide order dated 17/02/2007 informed the applicant that his name has been withdrawn from blacklist and he was advised to make an application under clause 29 of the agreement for revival of agreement. The applicant moved an application on 22.02.2007 before the Chief Engineer requesting for issuance of fresh work order. Request of applicant was telephonically approved and on that basis the applicant resumed construction work. Respondent No.3 again issued notice on 17.12.2007 to show cause as to why rescission of contract should not be ordered. Subsequent to that the petitioner was granted extension vide order dated 03.01.2008. The contract was again terminated by the respondents on 1.3.2008. The applicant placed its claim before respondent No.2 on 14.04.2008. Subsequent to that Reference Petition was filed before the Chhattisgarh State Arbitration Tribunal on 05.12.2008, making a total claim of Rs.2,47,67,152/- against the respondents. The learned Tribunal decided the claim by the impugned award holding that the applicant is not entitled for any compensation, damages or costs.