WESTERN COALFIELDS LTD. Vs. SHRISTI DEVELOPERS

JUDGEMENT

(1.) Plaintiff being aggrieved by judgment and decree dated 06.09.1997 passed in civil suit No.2-B/1996 has preferred this Appeal under Sec. 96 of the Code of Civil Procedure, 1908.

(2.) Plaintiff filed a suit for recovery of Rs.103415.40 contending inter alia that for a work of construction of 'Workers Institute' at Nandan Washery in the Kanhan Area, in Chhindwara District in response to the notice inviting tender, the tender given by the defendant was accepted. An agreement was executed on 16.11.1991. As agreed, the date of commencement of work was 07.05.1991 and the work was to be completed on or before 06.0199 The valuation of contract was Rs.481097.04. Besides agreeing that the work is to be completed by 06.01992, it was also agreed to adhere to maintain proportionate rate of progress as per clause 9 of the agreement. That clause 7 stipulated that the contract may be rescinded and the security deposit and other dues of the work or any other work done under the Coalfields may be forfeited and brought under the absolute disposal of the coalfields, if in the opinion of the coalfield either the work is not progressing satisfactorily or is not likely to be completed within stipulated time or if the contractor fails to comply with the terms and conditions. It was also the term of contract that all disputes and differences whatsoever arising between the parties out of or relating to the constructions, meaning and operation or effect of this contract or breach thereof shall be settled by a sole arbitrator appointed by the CMD of Western Coalfields Limited.

(3.) As the contractor executed only a part of the construction work of the value of Rs.172420.24 and then abandoned the work. And even after agreeing to complete the work as per work programme by the end of Nov. 1993 did not accomplish the same, the contract was rescinded vide intimation dated 21.4.1995. After cancellation of contract the balance work was required to be completed by another agency on extra cost, for recovery whereof, plaintiff filed the subject writ for recovery of Rs.103415.40 and the interest thereon @ 6% per annum.