STATE OF KERALA Vs. POULOSE

JUDGEMENT

(1.) THIS is an appeal filed under S. 39 (1) (vii) of the arbitration Act. The State and the Superintending Engineer, Kallada Irrigation Circle , Kottarakkara are the appellants. The respondent is a contractor and will be referred to as such in the course of the judgment. He had entered into a contract dated 17-12-1977 with the appellant regarding the work of right bank main canal from chainage 32210 M to 33000 M. The work was to be completed as per the agreement within 20 months from the date of handing over of the site to the contractor. The site was handed over on 17-1. 1978. The contract contained periodical targets for the progress of the work. The probable amount of the contract was rs. 14,87,571/ -. Prevision was made for part-payment of the bills. The terms of the contract provided for forfeiture of the earnest money deposit and the retention money in case of breach of contract

(2.) CLAUSE. 20 of the specifications relating to Kallada irrigation Project canal works which formed part of the agreement provided that the contractor was bound to take ail precautions to protect persons, work and property while blasting rocks for the purpose of formation of the canal. In the selection notice date 9-11-1977, issued by the Superintending Engineer to the contractor accepting his tender, which formed part of the agreement, it was stated that "it must be understood that en no account, the rates once fixed will be increased". The contractor was expected to have inspected the work site and. ascertained the hazards, if any, before he tendered for the work. The specifications, which farmed part of the contract, provided that within three months of handing over of the site and commencement of the work, the contractor would complete 15 per cent of the total work. He was to complete 35 percent of the work within six months, 50 percent within nine months, 70 percent within 12 months, 85 percent within 15 months, 97 per cent within 18 months and the complete work within 20 months.

(3.) THE contractor then filed his claim before the named arbitrator raising 11 claims. We are concerned only with claims 1 to 4, 6 and 9 of the claims. THEy were, (1) a declaration that the claimant is absolved from all the obligations of the contract and that he is entitled for the payment of his final bill, a1ongwith a further amount of Rs. 35,000/ -. (2) Release of security and retention amounts, (3) Extra payment of 35 per cent increase in rates for works carried out since 1-9-1978. (4) Additional payment of Rs. 10,23,800/- at the extra rate of Rs. 900/10m3 of protected blasting (6) payment of Rs. 25,000/- towards the cost of materials left at site and meant for consumption in the work. (9) A declaration that the arrangement of the balance work shall not be at the risk and cost of the contractor.