RAGHUL CONSTRUCTION ENGINEERS Vs. NTPC

JUDGEMENT

(1.) Two arbitration awards passed by the same arbitrator were set aside by the civil court by a common order. These two appeals are filed by the contractor against that common order. Parties are the same.

(2.) Appellant/Contractor was awarded two contracts with the respondent National Thermal Power Corporation (NTPC) for (1) the construction of temporary office-cum-storeshed No. 2 at plant area of Kayamkulam STPP and (2) construction of an approach road to the southern block of plant area of Kayamkulam STPP. Clause 56 of the general conditions of contract provides for arbitration. First paragraph of Clause 56 reads as follows:

(3.) Now, we will consider M.F.A.No. 859 of 2002 filed against the award in O.P. (Arb.) No. 72 of 1997 with regard to the construction of temporary office-cum-storeshed No. 2 at plant area. Letter of award was given on 14-6-1990. Before that, the decision to give the award was informed by telegram on 24-5-1990. The actual work was completed on 15-2-1991. A pre-final bill was submitted on 22-2-1991. He was informed by the NTPC that part bills were given from time to time on the basis of the terms of the contract and since the actual work was completed, it is for him to give the final bill. Accordingly, final bill dated 11-8-1991 was submitted on 12-8-1991 for an amount of Rs. 20,77,732.29. NTPC refused to give a completion certificate by letter dated 20-12-1991 as the contractor did not remove the surplus materials to the stores. Till the surplus materials, are received back, it shall be deemed as incomplete. The contractor on 20-12-1991 issued a lawyer notice demanding arbitration. Various additional claims than that was mentioned in the final bill were also raised in the above lawyer's notice. Since final bill was not paid, appellant filed Writ Petition before this Court (O.P.No. 7703 of 1992). After filing the O.P., reply to the lawyer notice was sent on 30-5-1992 denying the claims and also pointing out that if there is dispute, remedy is to go for arbitration subject to arbitrability of disputes. The Writ Petition was disposed of recording the submission that final bill will be settled within two months. Final payment was made on the basis of the final bill on 6-8-1992 and security deposit was released on 12-8-1992. The above payments were not accepted in settlement of all the claims. With a letter of protest dated 12-8-1992, the above cheques were accepted by the contractor. Thereafter, they approached the Sub Court and on the basis of the directions of the Sub Court and in accordance with Clause 56 of the general conditions of contract, an arbitrator was appointed and award was passed on 23-5-1997.