UNION OF INDIA Vs. MEHTA TEJA SINGH

JUDGEMENT

(1.) There is an appeal by the Union of India from the Judgment of a learned single Judge of this court (reported in AIR 1977 Del. 231) setting aside an arbitration award in so far as it directed the respondent, a firm of contractors (M/s. Mehta Teja Singh & Go.) to pay to the appellant (the Union of India) a sum of Rs. 14,674.00 .

(2.) The respondent firm had executed a contract for the construction of an irrigation channel at Hissar. This involved, inter alia, rough excavation in any soil (ordinary or hard) getting out and removal of spoil to a distance not exceeding 440 yards all as specified" (vide item 4 of Schedule A to the contract). For this item of work the contractual rate agreed upon was Rs. 4.50 per cubic metre (as against a rate of Rs. 4.24 mentioned in the standard specification rates: "SSR". for short). When, at the end of the contract, the contractor firm claimed a sum of Rs. 12,782.09 as due to it under the final bill, the Union, relying upon the report of a technical examiner made under Cl. 67 of the contract, claimed that the contractor had been overpaid to the extent of Rs. 50,478.15 and that the Union was entitled to recover this amount from the contractor.

(3.) The basis for the above claim was briefly this. It was said that the contractor was entitled to be paid at the rate of Rs. 4.50 per cubic metre in regard to the item of work referred to above only where it did the excavation work and transported the removed spoil to a distance of 440 yards or more, but that, as the contractor had dug the borrow pits in such manner that it had to remove the soil over a distance of only 50 yards or even less the rates of payment to him called for reduction.