SECRETARY TO GOVERNMENT Vs. SPL INFRASTRUCTURE PVT LTD

JUDGEMENT

(1.) THIS appeal is directed against the order of the learned Judge in dismissing the petition filed by the Government against the award passed by the Arbitral Tribunal in respect of challenging the award under Section 34 of the Arbitration and Conciliation Act.

(2.) AS per the agreement entered into between the parties, which relates to construction of four bridges along with the design and approaches in Tiruvannamalai District and the contract was dated 17.3.1999 for a total cost of Rs.12,83,00,000/-. As per the terms of contract, the period of contract was 18 months viz. between 1.4.1999 and 1.8.2000. But the bridge works were not completed within the stipulated period. On 31.7.2001, excepting the bridge work at Km 6/6 of Polur Jamunamaruthur Alagayam Road, which was completed on 18.1.2001, all other works were completed. The period of extension was granted by the appellant without any protest.

(3.) IN the first claim, the Contractor has claimed an amount of Rs.81,00,000/-, which relates to increase of thickness of raft from 0.75 meters to 1.4 meters. The Arbitral Tribunal has found that the increase in raft foundation has been submitted by the Contractor, after consultation with the appellant-Government and in fact, it was recommended by the Engineer concerned and it was a finding of fact. The Arbitral Tribunal has accordingly awarded in respect of difference in cost to the extent of Rs.43,06,000/-.