STATE OF GUJARAT Vs. SHETH CONSTRUCTION CO RAJKOT

JUDGEMENT

(1.) The State of Gujarat has filed this appeal under Sec. 39 of the Arbitration Act against the judgment end order dated 8-8-1988 passed by Mr. M. M. Peshwani Civil Judge (S. D ) Narol in Special Civil Suit No. 21 of 1988. The Special Civil Suit is filed under Sec. 20 of the Arbitration Act on 21-1-1988.

(2.) In the suit it is the contention of the plaintiff-respondent that the Executive Engineer Bhavnagar Irrigation Project invited tender for the work of construction of earthen dam masonary dam (excluding spillway gates) head regulator and spillway bridge for Himirpur Irrigation Scheme. The tender of the plaintiff was for a sum of Rs 1 14 27 0 against the estimated cost of Rs. 1 19 64 626 and it was accepted. The work order was issued to the plaintiff on 26-4-1982. As per the agreement plaintiff was required to complete the work within 24 months from the date of the work order i.e. on or before 25 It is the say of the plaintiff that the work was completed on 30-7-1984 as reported by it by its letter dated 8-9-1984. The defendants appellants prepared the final bill on 31-1-1985. The plaintiff accepted amount of the final bill of Rs. 1 13 38 212 under protest. Security deposit was also refunded to the plaintiff.

(3.) It is the further say of the plaintiff that on various grounds the plaintiff claimed certain other amount and for that the plaintiff has served notice dated 25-2-1985 to the defendants. As the defendants failed to pay the said amount Special Civil Suit No. 258 of 1986 was filed on 16-12-1986 before the Civil Judge (S.D.) at Narol claiming in all Rs. 1 12 23 820 and praying that as per terms of the agreement with defendants the dispute be referred to the Arbitrator as provided h the agreement. That suit was filed under Sec. 20 of the Arbitration Act. By judgment and order dated 12-6-1987 the Court appointed Mr. Vakharia retired Chief Engineer Irrigation Department as the sole arbitrator with a direction that the arbitrator shall decide only those disputes which are exclusively falling within the scope of clause 30 of the suit agreement and shall not decide other disputes. Against that judgment and order First Appeal No. 744 of 1987 was filed before this Court and that appeal was summarily dismissed by order dated 8-10-1987.