STATE OF GOA Vs. RANI CONSTRUCTIONS PVT LTD

JUDGEMENT

(1.) This State takes exception to the judgment of Learned Civil Judge Senior Division, Bicholim in Civil Misc. Application No.113/92, whereby the Ld. Judge rejected objections raised by the appellants to an award made on 7.5.92 and proceeded to make the award rule of the Court.

(2.) The appellant had issued notice inviting tenders for the work of construction of Left Bank Main Canal of Tillari Irrigation Project from Ch. 4.012 to 7.500 kms. in Bicholim Taluka. The respondent's tender was accepted by a work order dated 17.02.1988 for a value of Rs.80,43,170.43. The respondent was to commence work within 15 days.

(3.) On 10.12.1990, by a notice the respondent invoked arbitration clause requesting the Chief Engineer of the appellant to appoint an Arbitrator. Shri M. Raghuchander was appointed arbitrator on 14.5.91by the appellant's Chief Engineer. Respondent filed a Claim Statement before the Arbitrator claiming a sum of Rs.26,06,731.60 towards extra expenditure, Rs.4,54,500/-towards towards idle charges for men and machinery, Rs.8,87,793/-on account of loss of overheads, Rs.5,91,864/-on account of loss of profits, Rs.10,00,000/-for illegal termination of contract, and release of security deposit with interest at the rate of 18% per annum and pendentelite, with cost of arbitration of Rs.50,000/-.