SUPERINTENDING ENGINEER Vs. B SUBBA REDDY

JUDGEMENT

(1.) This Civil Miscellaneous Appeal and the Civil Revision Petition filed by the State of Andhra Pradesh and its officials of the Irrigation Department arise out of an arbitration matter. The C.M.A. is against O.P. 132 of 92 on the file of the Additional Subordinate Judge, Ongole under Section 30 of the Arbitration Act to set aside the award dated 17-9-1992 passed by the Arbitrator. The C.R.P. is against O.S.No. 4 of 93 on the file of the same Court filed by the contractor/respondent under Sections 14 and 17 of the Arbitration Act to make the award dated 1/-9-1992 rule of the Court. By a common judgment dated 1/-1-1994, the lower Court dismissed O.P.No. 132 of 92 and decreed O.S.No. 4 of 93 making the award rule of the Court for a sum of Rs.2,73,025/- with subsequent interest at 6% per annum on Rs. 1,06,390/- from the date of decree till realisation and for costs of Rs. 7,790/-.

(2.) The State entered into an agreement with the respondent on 1-5-1983 for the construction of a vented causeway on Inagaleru Drain. The value of the work was estimated at Rs. 1,07,057/-. The work site was handed over to the respondent on 8-5-1983. The time stipulated for completion of the work was six months from the date of handing over of the site i.e., 7-11-1983. The respondent executed the work up to the end of May, 1983 by which time only 14% of the work was executed. According to the respondent, the work could not be completed within the stipulated time solely on account of the delays and defaults committed by the Department and he was not at all at fault. On 20-11-1983 the respondent notified the Department that since the agreement period was over and as there is steep increase in the prices, rates quoted in the agreement are not workable and he should be allowed the current Stand Schedule Rates (S.S.R.) for executing the work further. If the Department is not willing to allow the current Standard Schedule Rates, the contract should be closed without penalty. The Department did not agree for the same and instead it invited fresh tenders. After some correspondence, the respondent moved the Court for appointment of a sole Arbitrator invoking the arbitration clause in the agreement. By an order of the Court dated 9-10-1991, a retired Chief Engineer was appointed as the sole Arbitrator to decide the claims and disputes raised by the respondent. The Arbitrator finally passed the award dated 1/-9-1992.

(3.) The respondent made several claims before the Arbitrator. The details of the claims and the award made by the Arbitrator thereon are as follows: CLAIMS AWARD I (a) Claim No.1A : Refund of EMD and withheld amounts Allowed EMD Rs. 1,950/- Withheld amounts Rs. 1,230/- FDD Rs.1,850/- Rs.5,030/- (b) Claim No.1B : Compens above am ation on the ount from the Allowed awarded 18% p.a. from 1-12-83 CLAIMS AWARD date which it is due to date of reference @ 30% p.a. II (a) Claim No.2A : Towards idle overhead Charges @ Rs.12,000/- Allowed awarded Rs.12,000/- (b) Claim No.2B : Compensation on the above claim @ 30% p.a. Allowed awarded 18% p.a. from 1-12-89 to 28-1-92 on III (a) Claim No.3A : Towards loss of advance Rs.72,000/- Rs.12,000/-Allowed awarded (b) Claim No.3B : Compensation on Rs.72,000/- @ 30% p.a. Rs.72,000/-Allowed awarded @ 18% p.a. on Rs.72,000/- from IV (a) Claim No.4A : Towards loss of profit on work prevented from execution estimated at 15% on the value of Rs.5,32,000/- (Revised estimates) valued at Rs.80,000/-. 1-12-83 to 28-1-92 Partly allowed. Awarded Rs.16,360/- (b) Claim No.4B : Compensation on the above amoutn @ 30% p.a. Allowed. Awarded 18% p.a. on Rs.16,360/- from V (a) Claim No 5A : Towards compensation for amounts covered under Claim 1A to 4A from the date of award @ 30% p.a. 1-12-83 to 28-1-92 Awarded pendente lite interest on Claim No.2A, 3A and 4A @ 18% p.a. from the date of entering into reference i.e., 28-1-92 till the date of award VI Claim No.6A : Interest on award amount from the date of award to the date of payment or decree @ 24% p.a. dt.1/-9-92 Allowed. Awarded @ 18% p.a. on Claim No.2A, 3A and 4A from the date of award to the date of