STATE OF M.P. Vs. S.K.YADAV

JUDGEMENT

(1.) THIS Revision Petition has been filed by the State of MP aggrieved of the order passed by the MP Arbitration Tribunal, Bhopal in Reference Case No.8/93, which was filed by the respondent against the appellant/State under section 7 of the M.P. Madhyastham Adhikaran Adhiniyam, 1983 claiming the total sum of Rs.96,147/ - as detailed in the statement of claim annexed with the petition as Annexure -20. The respondent had also prayed for interest on the aforesaid sum at the rate of 12% p.a. till the date of payment. On the other hand, the appellant resisted the claim and preferred the counter claim to the tune of Rs.7,71,820/ -.

(2.) IT is undisputed fact that in this case parties entered into the works contract. On behalf of the Narmada Valley Development Division respondent invited tenders for construction of Tonki distributory of left bank canal from RD 6810 to 12990 meters. The tender of the petitioner for this work was accepted and letter of acceptance dated 12.2.1988 (Ex.P -1) was issued by the respondent No.2. The tender was accepted for Rs.5,53,706/ - (Five Lacs Fifty Three Thousand Seven Hundred Six). After receipt of acceptance letter, petitioner signed the agreement No.7/88 -89 and thereafter Work Order dated 19.4.1988 (Ex.P -2) was issued by the respondent No.3. The work was to be completed within a period of 12 months from the date of Work Order including rainy season i.e. 19.04.1989 to 18.4.1990. It was an item rate contract as per terms of the tender document for local competitive bidding, as approved by the Government of Madhya Pradesh in the Department of Irrigation for Narmada Valley Development Department for item rate tenders.

(3.) IT was the case of the respondent that even thereafter, some of the land owners were not paid compensation till May, 1992. Because of that, some of the cultivator did not allow the respondent to do any work in their field. This, according to him amounts to fresh breach and became the reason for non - compliance of the contract.