M V V SATYANARAYANA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an application for appointment of a sole arbitrator for adjudicating the disputes that have arisen between the applicant and the respondents.

(2.) It is an admitted fact that ,for the construction of Type V Quarters for 7 units and Type IV Quarters for 6 units for Gazetted and Non-Gazetted Officers in IRISET-SC area, the applicant had submitted his tender and it was accepted by the respondents and in pursuance there of, they entered into an agreement on 31-5-1989. The work was to be completed within 12 months from the date of acceptance letter dated 18-5-1989. The value of the work was Rs. 21,94,885/-. The work could not be completed within the stipulated time, that is, 18-5-1990, and at the request of the applicant, time was extended and the contract was completed on 30-10-1991. Possession of the constructed Quarters was delivered by the applicant to the Railways through the respondents.

(3.) The case of the applicant is that the site was not handed over to the applicant within time, electricity was supplied only after 18-5-1990, drawings were not handed over to the applicant by the respondents within a reasonable time, and the drawings were changed frequently. Due to the aforementioned acts of the respondents, re-construction work had to be done and the workmen had to sit idle. The respondents did not return the security deposit of Rs. 1,50,000/- within time, but returned it only on 18-12-1997 and made illegal deductions and paid only an amount of Rs. 68,240/- on 15-5-1997 out of the final bill. Therefore, the applicant is entitled to claim Rs. 1,80,000/- against the final bill and various amounts shown at Sl.Nos.2 to 11 under different heads making a total claim of approximately Rs. 55,00,000/-. The applicant demanded the amount vide letter dated 30-10-1996 and requested for appointment of an arbitrator, but no arbitrator has been appointed and, therefore, an independent arbitrator should be appointed.