UNION OF INDIA Vs. M S N MURTHY

JUDGEMENT

(1.) Aggrieved by common Judgment, dated 18-04-1994 in O.S.No.235 of 1991 and O.P.Nos. 115 and 123 of 1991, Union of India represented by its Chief Engineer, South Central Railway, Secunderabad, filed these two matters. Civil Revision Petition No.261 of 1995 is filed against O.S.No.235 of 1991 and C.M.A.No.2522 of 2001 is filed against O.P.No. 123 of 1991. In view of the order we propose, it is not necessary to elaborate the factual background in detail. For better appreciation of the matter, the skeleton facts are mentioned in the ensuing paragraphs.

(2.) First respondent (hereafter called, the Contractor) under an agreement, dated 01- 02-1985 was awarded the work of development of maintenance facilities for Box 'N' wagons at Gooty, construction of auxiliary office, wheel and lathe shed, water supply and drainage arrangements, electrical sub station and lavatory block, at an estimated cost of Rs.13,07,804/-. The contract stipulates the completion of work within four months from the date of issue of acceptance letter on 18-03-1985. Be that as it is, the work was completed on 31-05-1986. The contractor obtained five extensions as he could not complete the work within the stipulated time. Disputes arose. Contractor requested General Manager, South Central Railway, Secunderabad, to refer twenty eight (28) claims to arbitration in accordance with Clause 64 of General Conditions of Contract (GCC). The latter referred eight (8) claims to joint arbitrators in accordance with Section 14 of the Arbitration Act, 1940. The parties filed their statements. The arbitrators passed an award on 25-06-1991 partly allowing all eight claims. A total sum of Rs.6,99,065/- was awarded. The details of the amounts claimed and amounts awarded are as follows. <FRM>JUDGEMENT_40_ALT2_2010Html1.htm</FRM>

(3.) The arbitrators filed O.S.No.235 of 1991 under Sections 14(2) and 17 of the Arbitration Act before the Court of III Additional Judge, City Civil Court, Hyderabad, for making the award rule of the Court. The contractor filed O.P.No.115 of 1991 under Section 30 of the Arbitration Act insofar as claim numbers 1 and 6 are concerned with a prayer to modify the award by granting interest at 20% per month from 01-07-1986 till realization. The Railways filed O.P.No.123 of 1991 to set aside the award. By common Judgment, dated 18-04-1994, the lower Court decreed O.S.No.235 of 1991 and dismissed the petitions filed by the contractor and Railways. As noticed supra, Railways have filed civil revision petition against O.S.No.235 of 1991 and civil miscellaneous appeal against O.P.No.123 of 1991.