STATE OF KERALA Vs. O V GEORGE

JUDGEMENT

(1.) The appellant State filed petition under Sec.33 of the Arbitration Act.1940 to set aside the arbitration award. It was dismissed. The petition filed under Sections 14,17 and 29 by the Contractor was allowed. It was in the above circumstances this appeal has been filed.

(2.) The subject matter of the contract was construction of a building for Taluk Headquarters Hospital at Peermade. The contract was entered into between the parties for an amount of Rs.15,20,538/-. Agreement was executed on 24.10.1980 and as per the stipulations in the agreement, the work had to be completed by 26.11.1982. It has been extended thrice and work has been completed on 30.6.1987. Extension was based on three supplementary agreements specifically providing for extension of time. There was additional work also done by the Contractor as covered by two other supplementary agreements dated 23.1.1984 and 25.11.1987. The amount base on final bill was received by the Contractor on 11.12.1987. It was thereafter he issued a notice of claim on 27.1.88. He did not receive any reply. It persuaded him to approach the Arbitrator raising 16 claims altogether.

(3.) Though the respondent did not respond to the notice of claim directly to the contractor, when the matter was taken up before the Arbitrator apart from disputing the claims, two preliminary objections were raised with regard to the arbitrability of the matter; (1) on limitation and (2) on estoppel.