LAWS(DLH)-2012-4-98

D D A Vs. PANDIT CONSTRUCTION CO

Decided On April 19, 2012
D.D.A. Appellant
V/S
PANDIT CONSTRUCTION CO Respondents

JUDGEMENT

(1.) TWO issues are required to be reflected upon by us in the instant appeal. The first issue relates to the applicability of Section 28 of the Indian Contract Act 1872, post amendment vide Act No.1 of 1997 with effect from January 08, 1997 and the second issue relates to the plea raised by the appellant before the learned Arbitrator, which plea was accepted by the learned Arbitrator, but reversed by the learned Single Judge, on waiver of the respondent to press for the claim by accepting payment under the final bill towards full and final settlement of its claim.

(2.) THE facts in brief are that appellant invited offers by issuing a Notice Inviting Tenders for constructing a local shopping centre at New Rajendra Nagar. Respondent's offer was accepted and this resulted in the party binding themselves to a contract as per agreement dated November 30, 1990. THE stipulated date of completion was March 09, 1992 and admittedly the work lingered on till April 28, 1998. THE final bill was prepared by the appellant on July 05, 1999, but best known to the appellant was cleared/passed by its Competent Authority on March 20, 2001. Respondent received payment as per the final bill cleared on April 12, 2001 and on July 09, 2001 raised claims against the appellant, which were referred to arbitration in view of there being an arbitration clause in the agreement between the parties, and while making the reference it was made clear that the issue pertaining to the claim being barred by limitation and additionally being waived would be adjudicated by the learned Arbitrator.

(3.) CLAUSE-25 of the General Conditions of Contract, which provides of reference of disputes to arbitration, inter- alia, reads as under:-