STATE OF M.P. Vs. MANOJ SHARMA

JUDGEMENT

(1.) THE petition is filed by the State under Article 227 of the Constitution of India challenging the order dated 16.11.2005 passed by VII Additional District Judge, Gwalior, and for quashing the Execution Proceedings No. 181/05 pending in the Court of III Additional District Judge, Gwalior.

(2.) BRIEF facts of the case are that respondent No.1 is a contractor and registered with the Public Works Department. He carries on the business of taking contracts from Public Works Department and other departments of the Government. On 15.10.2001 respondent No.1 entered into an agreement for construction of a road from 1 Km. to 31 Km. Parihar Pagara Road, Annexure P -1. The total cost of the construction was Rs.176.12 lacs. As per the terms of the contract, the respondent No.1 was required to submit running bills. Accordingly, he submitted the running bills from time to time and was paid an amount of Rs.120 lacs. However, the remaining bills were not paid and therefore, the dispute arose.

(3.) THE dispute arose between the parties regarding the execution of works and the payment of bills. The respondent No.1 was not paid the amount claimed by him hence he approached the respondent No.2 as per clause 29 mentioned above. Respondent No.2, purported to be acting as an arbitrator, has passed award Annexure P -3, whereby he has accepted the claim No.1 to the tune of Rs.57,67,300/ -, towards claim No.2, Rs.31, 14,700/ - and towards claim No.3, Rs.2525,365/ -. Thus, according to the respondent No.2, respondent No.1 is entitled to Rs.1,14,07,365/ -. He has also directed that the State Government should pay the said amount within thirty days from the date of passing of the award. This award was passed on 21.6.2005.