STATE OF M P Vs. PRECONCO INDORE

JUDGEMENT

(1.) THIS is an appeal by the State of M.P. against the judgement dated 1-8-1981 passed by the Court of District Judge, Ujjain in Civil Suit No. 8-B of 1980 whereby the learned District Judge while refusing to set aside the Award dated 27-8-1979 under S.30 of the Arbitration Act, has made the Award a Rule of the Court and granted a decree for Rs. 1,13,435/- in favour of the Contractor respondent against the State of M.P., the appellant.

(2.) THE material facts giving rise to this appeal, briefly stated, are as follows:- THE appellant State of M.P. through the Executive Engineer, Public Works Department (B and R), Ujjain on 22-10-1966 entered into a contract with the respondent M/s. Preconco (hereinafter referred to as the Contractor) for construction of a bridge across Gambhir river as per the terms and conditions stipulated in the formal deed of Contract. Clause 17 of the Contract provided for a reference to arbitration in case of dispute arising between the Executive Engineer representing to the contract stated therein. As the question in controversy in the present appeal involves construction of the said reference Clause-17, the same may be reproduced usefully at the outset.

(3.) THE two Arbitrators entered upon the reference on 11-11-1972 and eventually on 3-5-76 disagreed regarding the matter referred to them. According to Shri Joglekar, the Contractor was entitled to get Rs. 62,435/- with interest at the rate of 6% per annum from the date of payment of the Bill i.e. 1-9-1972, while according to Shri Modak the entire claim was to be negatived. In view of the disagreement between the Arbitrators the matter was referred to the Umpire as per the provision of Clause-17 aforesaid. THE Umpire started hearing on 16th September, 1976 and after due extensions up to 31-8-1978, ultimately gave an Award of Rs. 1,13,435/- with interest at 6% per annum from 29-1-1972 till 27-8-78 in favour of the Contractor.