CHIEF PROJECT MANAGER RAILWAY ELECTRIFICATION VISAKHAPATNAM Vs. ELECTRICAL CONSTRUCTIONS AND EQUIPMENT COMPANY LIMITED

JUDGEMENT

(1.) Chief Project Manager, Railway Electrification, Visakhapatnam is the petitioner in this writ petition.

(2.) In this writ petition, the order dated 2-8-2001 passed in A.A.No. 58 of 1999 appointine the second respondent. Sri Justice N.D. Patnaik, as the sole arbitrator on the application filed by the first respondent herein under Section 11(6) of the Arbitration and Conciliation Act, 1996 (for short "the Act") is assailed.

(3.) The first respondent was awarded with Over head Equipment Contract for Bellampalli (Excl) - Ballarsh (Incl.) section of Vijayawada - Ballarsh Railway Line under the approval letter dated 31-1-1983 issued by the Railway Board. According to the railways, the first respondent did not complete the contract work awarded within the time stipulated and eleven extensions were given to it to complete the work. The first respondent completed all the works by March, 1989, but the extension was given to him to carry out the left over miscellaneous works, which it did complete by the end of March, 1991. Payments were made to it, which it received without protest. After the completion of the entire work by March, 1991, the first respondent made a claim for settlement of Rs. 92.51 lakhs. According to the railways, the claim made by the first respondent itself was time barred. It is further submitted that as per the contract agreement; the work executed by the first respondent for which payment has been made by the petitioner and the same was received by the first respondent without any protest and that the claim of the compensation is not subject matter of contract agreement as per clause 1.2.54 of the special conditions of the contract read with clause 34 of General Conditions of Contract.