C VENKATESWARA RAO Vs. UNION OF INDIA

JUDGEMENT

(1.) Inasmuch as the above two Civil Revision Petitions arise out of a common Judgment dated 28-11-2001 passed by the learned III Senior Civil Judge, Secunderabad, in O.S.No.55 of 1994 and O.P.No.11 of 1999, they can be disposed of together.

(2.) The unsuccessful first defendant-respondent is the revision petitioner. He was a contractor who entered into an agreement bearing No.1/CE/C/SC/85 dated 18-6-1985 with the Union of India, the respondent herein, agreeing inter alia to complete the work within 12 months from the date of the acceptance letter dated 5-1-1985. However, he could not complete the work in time despite the extension of time, time and again, and, therefore, the contract was terminated on 26-4-1988 with the risk and costs of the contractor. The work having been entrusted to some other contractor that was completed by him on account of which the Union of India incurred higher rates of expenditure. In view of the dispute between the Union of India and the contractor, it was referred to two Arbitrators by the General Manager, South Central Railway, representing Union of India. The Arbitrators entered upon the reference and eventually passed an award dated 2-2-1994 whereunder the claim of the contractor to a tune of Rs.1,50,0007- was allowed and the counter claim made by the Railways was allowed for a sum of Rs.5,06,7107-. After having adjusted the claim of the contractor, the Railways were held to be entitled to recover a sum of Rs.3,56,7107- from the contractor. Thereafter, the Railways filed O.P.No.11 of 1999 to make the award as rule of the court and to award interest from the date of the award till the date of payment at the rate of 18% per annum.

(3.) In the meanwhile, the two Arbitrators filed O.S.No.55 of 1994 to make the award as rule of the court.