BENGAL TRADING SYNDICATE Vs. UNION OF INDIA

JUDGEMENT

(1.) The present appeal has been filed by M/s. Bengal Trading Syndicate, the appellant, aggrieved by the order passed by the District Judge, Jabalpur in Civil Suit No. 33-A of 1994 whereby the award passed by the Arbitrator with respect to claims under Item Nos. 3, 5, 31(a) and 32 was set aside and the award in respect of other claims of the appellant was made rule of the Court. It was ordered that in respect of Claim No. 4 an amount of Rs. 25,584.91. p., in respect of Claim No. 7 an amount of Rs. 1,29,645.00, in respect of Claim No. 36 an amount of Rs. 50,932.48 p. in respect of Claim No. 9 an amount of Rs. 13,455/-, in respect of Claim No. 12 an amount of Rs. 29,748,54 and in respect of Claim No. 33(a), 33(b) and 37 an amount of Rs. 34,560/- shall be paid by the Union of India to the appellant. It was further directed that the Union of India shall pay to the appellant interest at the rate of Rs. 12% per annum from 14-6-1990 to 24-8-1994 on all awards except award in respect of Claim No. 33(a). Interest at the rate of 15% per annum from the date of award till realisation was also awarded.

(2.) Arbitration was resorted whereas certain differences arose between the parties to the contract in respect of certain civil works at Khamaria Factory Jabalpur pertaining to C.A. No. CEJZ/JBL/49 of 86-87. Brigadier S.D. Sohoni was appointed Sole Arbitrator. He was appointed as Sole Arbitrator in the matter by the Engineer-in-Chief, Army Headquarters. Thereafter, vide letter dated 22nd June, 1993 the Arbitrator entered into reference. Hearing was held from 6-6-1994 and the Arbitrator closed the hearing on 8-6-1994. The award was passed on 16-8-1994.

(3.) A tender for the contract in question was issued on 22nd Feb. 1986 and the tender was received back on 16th May, 1986. The lowest tender was accepted on 4-12-1986. The amount of lowest tender was Rs. 2,14,65,528.07 p. The work order was issued on 9-12-1986 to the appellant and the date of commencement of work was 24-12-1986. The date of completion of work contemplated under the contract was 23-9-1988 which was extended upto 15 Sept. 1989 and the work was actually completed on 15th Sept. 1989. It was a lumpsum contract based on IAFW 2249, having 9 parts of Schedule 'A'. Part I of the contract was lumpsum and Part II to IX were item-rate. Scope of the contract was construction of various kinds of shops and buildings in Khamaria Ordnance Factory Jabalpur as contemplated under the agreement.