DODSAL PVT. LTD. Vs. DELHI ELECTRIC SUPPLY UNDERTAKING

JUDGEMENT

(1.) This three appeals raise the same common issue and can be disposed of altogether. As it is common ground that the facts involved are the same and the disposal of one of the appeals will also cover the other two, we proceed to deal with the facts and the contentions urged in F.A.O (OS) 50/79, the order in which will cover the other two appeal as well.

(2.) The appellant M/s Dodsal Pvt. Ltd. submitted a tender on 23/9/1968 giving quotations for the erection and commissioning of a boiler with its auxiliaries for the 5th Unit at the Indraprastha Power Station Project at Delhi. This tender was made to the Executive Engineer, Electrical III, Delhi Electric Supply Undertaking (a department of the Municipal Corporation of Delhi) in response to an advertisement calling for tenders published by the above officer. According to the appellant the tenders submitted by it as well as other contractors were examined and the appellant's tender was accepted after negotiations held with the General Manager, Delhi Electric Supply Undertaking (DESU), the officers of the Central Water and Power Commission and other representatives of various other Governmental agencies. Following these negotiations the appellant was given a letter of indent signed by the Executive Engineer. Electrical III and the appellant was asked to commence work immediately. They are stated to have commenced work on 11th December, 1968.

(3.) A formal contract embodying the terms and conditions subject to which the work of costruction and erection was entrusted to the appellant was executed on 28/4/1969. This contract admittedly contained an arbitration clause under which all disputes arising between the parties the settlement of which was not specifically provided for in the contract were to be referred to two arbitrators, one to be nominated by the DESU and one by the con- tractor and in the event of disagreement between the arbitrators to an umpire appointed by the arbitrators.