V RAMANA REDDY Vs. UNION OF INDIA

JUDGEMENT

(1.) In this application under Section 11 (5) of the Arbitration and Conciliation Act, 1996, the petitioner prayed for appointment of an Arbitrator under Clauses 63 and 64 df the General Conditions of Contract.

(2.) The contextual facts depict that in terms of an invitation to tender, the petitioner submitted his tender and his tender was accepted by the respondents and in pursuance whereof the Agreement No. 247/A/CAO/C/SC/95 dated 11-10-1995 was entered into by and between the applicant and the respondents herein. As appears, on the factual score, the awarded work was completed and certain part payments were also made, but on completion of the work, by reason of specific conduct of the respondents herein, the applicant raised various disputes as regards reimbursement of payment made to financier and compensation for loss of profit together with loss sustained by reason of the conduct of the respondents. The applicant herein did, in fact, submit a claim in January, 1997 and requested for arbitration. Similar request was reiterated on 17-3-1997. The respondents, however, issued a letter rejecting the claim of the applicant in December, 1997. The final bill was, however, subsequently issued in January, 1998 and an amount of slightly over Rs. 9 lakhs was paid to the applicant. The applicant, however, has made a claim of Rs.1,08,55,567/- which has been denied and disputed by the respondents in no uncertain terms.

(3.) The learned Standing Counsel for the respondents, contended that by reason of acceptance of the final bill without any reservation, question of there being any further claim does not and cannot arise. I am, however, unable to record my concurrence to the same by reason of the fact that there was in fact a protest lodged by the petitioner much prior to the finalisation of the bill. The petitioner recorded his objection as regards the proposed deductions. Since a claim had already been lodged and the dispute has already been raised prior to the payment of the final bill, question of there being an unconditional acceptance of the same does not and cannot arise as there was existing on that date, a claim lodged by the petitioner.