STATE OF KERALA Vs. N K ABOOBACKER

JUDGEMENT

(1.) :-

(2.) THESE appeals arise apparently from two different awards passed by the same arbitrator, but they have sprouted from one contract work the amplitude of which grew much wider during the period of its execution. That contract work, with different shades of details, was undertaken by one contractor. When disputes arose between him and the Government, such disputes were referred to one arbitrator who passed three different awards upon the same evidence. We find it convenient to deal with these two appeals in one common judgment. The remaining third award was passed by the same arbitrator on certain disputes which sprouted from the same contract work undertaken by the same contractor. But, that is subject matter of another appeal (M.F.A. No. 89/ 95). After hearing both sides, we deem it more convenient to dispose of the said appeal by a separate judgment. Hence, we have delinked that appeal from these two. All the same, we may perhaps make some reference to the said appeal also in this judgment.

(3.) AFTER completion of the work, the respondent made claims for damages and compensation alleging that there were several acts of omission and commission which amounted to breach of contract on the part of the State Government. According to him, there was inordinate delay in handing over the site, there was delay in supply of cement, steel, gelatine and other materials, there were intermittant interruption of electric supply which resulted in huge loss of working hours. Respondent complained that on account of series of defaults, his cost of work increased far higher. Respondent claimed a consolidated sum of Rs. Three crores as his loss in the matter. The State Government repudiated this claim and then he invoked the arbitration clause in the agreement. The claims were eventually referred to Shri P. S. Chandran, Superintending Engineer, as the sole arbitrator. In award No. I, (which gave rise to M.F.A. No. 1289/94) the arbitrator awarded a sum of Rs. 2,85,79,500/- (Rs. Two crores eighty five lakhs seventy nine thousand and five hundred only) in favour of the contractor which together with interest awarded at the rate of 18 per cent per annum has swelled up to Rs.3,38,36,621/- (Rs. Three crores thirty eight lakhs thirty six thousand and six hundred twenty one only).