SALWAN CONSTRUCTION CO Vs. UNION OF INDIA

JUDGEMENT

(1.) TAIWAN Construction Company is a firm of builders and contractors (the builders). They entered into an agreement with the respondent Union of India for the construction of a multi-storeyed office building in New Delhi.

(2.) UNION of India had invited tenders for this work. The work was confined to the construction of ground, first, second, third and fourth floors. The Government in its invitation for tenders had quoted their estimated cost of work. According to them this work was to cost Rs. 41,17,513.

(3.) THE matter went to the arbitrator. He heard the parties. He made his award on April 5, 1974. He awarded the builders a sum of Rs. 5,20,198.77 with interest at 4 per cent per annum from the date of the award till payment or decree whichever is earlier.