GUJARAT HOUSING BOARD Vs. ARVIND C PATEL

JUDGEMENT

(1.) Rule. Mr. B. S. Patel waives service of rule for the respondent. With consent of the learned Counsel for the parties, the matter is taken up for final disposal today.

(2.) . In this petition under Art. 226 of the Constitution, the Gujarat Housing Board has challenged the judgment and order dated 31-7-2000 passed by the Gujarat State Public Works Contract Disputes Tribunal (hereinafter referred to as "the Tribunal") constituted under the provisions of Gujarat Public Works Contract Disputes Arbitration Tribunal Act, 1992 (hereinafter referred to as "the Act") rejecting Arbitration Reference No. 13 of 1999 only on the ground that the reference is not maintainable as the Gujarat Housing Board is not a public undertaking within the meaning of Sec. 2(1) of the Act.

(3.) . The petitioner-Gujarat Housing Board (hereinafter referred to as "the Board") had given a work contract to the respondent herein for construction of 48 H.I.G. tenements at Nagarvada, Vadodara. The tender was accepted on 28th July, 1994 and as per one of the terms of the tender the work was required to be commenced on 8-9-1994 and was to be completed on or before 7-3-1996, i.e., within a period of 15 months. The Board granted extension of time-limit for a period of four months to complete the work contract and further extensions were also given upto 36 months, but the work was not completed. Since, the respondent did not execute the work in spite of extension of time, the Board levied compensation as per Clause 2 of the agreement. According to the Board, the respondent stopped and abandoned the work and the work was done only to the extent of 29.51% of the total work and hence, the Board invoked Clause 3 of the contract agreement and intimated the respondent vide letter dated 11-11-1997, that rescission of contract had taken place and work was thereafter entrusted to another contractor. The Board thereupon claimed amount being the difference between the price charged by the subsequent contractor and the price at which the respondent No. 1 had agreed to execute the contract and also loss of interest and for compensation the Board claimed total loss of Rs. 54,40,8727- and interest at the rate of 18% p. a., on the amount from the due date till its realisation.