STATE OF GUJARAT Vs. VIR VIJAY CONSTRUCTION CO

JUDGEMENT

(1.) , J.

(2.) THESE appeals are filed by the State of Gujarat against the judgment and decree dated 27/10/1989 passed by the learned Civil Judge (S.D), Ahmedabad (Rural) at Mirzapur, below Civil Misc. Application No. 6 of 1989 and in Special Civil Suit No. 48 of 1989. By the impugned judgment and order, the trial Court passed a decree by modifying the award passed by the Arbitrator on 30/03/1988. The Court reduced the amount awarded from Rs. 54,36,885.00 to Rs. 52,56,608.98 ps. on the basis of agreed calculation. It also directed that the said amount, after deducting Rs. 18 lakhs which are already paid under the interim award should be paid with the simple interest at the rate of 10% per annum instead of 18% interest as awarded by the Arbitrator from the date of the award, i.e., 30/03/1988 till realisation.

(3.) ON 5/08/1981 the Executive Engineer, Irrigation Department, Rajpipla, accepted the tender of respondent No. 1 for a sum of Rs. 1,00,77,752.00 for construction of earth work and lining for Karjan Left Bank Main Canal CH. 7.08 km. to 15.94 km. of Karjan Project. ON 1 6/11/1981 the work order was issued. The work was required to be completed as per the contract within the period of two years from the date of the work order. However, it is found that the State Government was not in a position to hand over the possession of the site to the contractor over which the work was required to be carried out by him. Till 7/02/1985, the respondent carried out the work to the extent of Rs. 52 lakhs and the said amount was paid by the appellants. It is also found that the respondent was required to execute more than 30% of the contract work with regard to some items and 'extra items' which have cropped up due to exigencies of the work.