THE UNION OF INDIA (UOI), REPRESENTED BY THE EXECUTIVE ENGINEER, COIMBATORE CENTRAL DIVISION, C.P.W.D. Vs. S. NATARAJA PILLAI

JUDGEMENT

(1.) THIS civil miscellaneous appeal raises a point about the construction of an arbitration Clause in a building construction contract between the Union Government and a C.P.W.D. contractor. The contract was for construction of an Annexe to the Comptroller's Office building at Trivandrum at an estimated cost of about Rs. 5,47,000. The work was to be completed within 18 months. But, as the work progressed, the Government extended the time by two years. Apparently because of the time lag, the contractor incurred additional costs and expenses in the construction work. He accordingly applied to the Government for an upward revision of rates. During the execution of the contract, the contractor was also asked to do some substituted work. For this also he asked for extra payment. The Government, however, refused to pay him a pie more than what the contract had originally specified. In consequence, the contractor referred the matter for arbitration.

(2.) THE arbitrator entertained the reference. There were as many as four claims in dispute. The arbitrator dismissed one of them and allowed the rest in pa In money terms, the arbitrator passed an award directing the Government to pay the contractor a sum of Rs. 10,021 over and above the amount payable to him under the contract.

(3.) INITIALLY , at the hearing of this appeal, I felt a good deal of difficulty in considering this point. For, neither the construction contract, as a whole, nor the text of the relevant Clause therein, which contained the arbitration agreement, was placed before me. But, the order of the learned Subordinate Judge indicated what the scope of the arbitration Clause was. In the absence of the original text, I reckoned I might well act on the learned Judge's version of it. According to the learned Judge, the arbitration Clause mentioned 'all disputes between the contractor and the Executive Engineer of the Union of India' as referable to arbitration.