(1.) Heard Shri Ashok Nigam, Advocate assisted by Shri Neerav Chitrvanshi, learned Counsel for the appellant and Shri Rajesh Tiwari, Learned Addl. Chief Standing Counsel For the Respondents.
(2.) According to the appellant, the respondent had entered into an agreement on 19.6.1991 to undertake the work of "strengthening of existing work of two lane pavement from Km. 166 to 181 at National Highway-56". The total value of work under the agreement was Rs. 1,94,01,5000/- The period of completion of work, as per agreement was 18 months commencing from 19.6.1991 upto 18.12.1992. It is said that the work could not be completed in the stipulated period due to paucity of funds with the respondents. According to the appellant, the monthly, interim payments due to the claimants as prepared by the respondents and signed by the claimants were not paid and arbitrarily much lesser amount was paid to the claimants-appellants, which adversely affected the progress of the work. Vide letter no. 77 dated 25.11.1991 issued by the respondents, the appellants-claimants were asked either to continue work with their own funds as there is paucity of fund with the department or seek four months extension and that the final position of funds will be cleared only by January,92. The hold up of work due to shortage of funds with the respondents and its subsequent prolongation has involved extra cost in execution of work and other damages to the claimants. When the Respondent no. 1 had refused to make payment of the losses suffered by the appellant due to prolongation of execution of work as well as interest, the appellant referred the matter for arbitration as per the agreement.
(3.) The Arbitral Tribunal comprising of private respondents was constituted, which after considering the entire material and evidences on record gave its award on 31.10.2002 in favour of the appellant. The tribunal on the basis of its findings in the award, awarded the following amounts in favour of the appellant: <IMG>JUDGEMENT_27_LAWS(ALL)9_2017.jpg</IMG>