STATE OF MADHYA PRADESH Vs. BHARAT CONSTRUCTION CO

JUDGEMENT

(1.) THE revision has been preferred by the State aggrieved by award dated 28. 5. 2002 passed by M. P. Arbitration Tribunal, bhopal in Reference Case No. 196/91.

(2.) THE facts in short giving rise to the revision indicates that m/s Bharat Construction Company was given contract for construction of 52 units of non-residential buildings. The agreement was executed on 24. 2. 1983 and work order was issued, it was to be completed within 12 months including the rainy season. The contractor was unable to complete the work, time was extended on four occasions, last extension was given till 30. 6. 1986. Work was completed on 30. 9. 1986. The Tribunal has awarded amount of Rs. 2,41,008/-by way of escalation and interest thereon. Aggrieved thereby the revision has been preferred.

(3.) SHRI Sudesh Verma, learned Govt. Advocate has submitted that there was no escalation clause as period of contract was 12 months, hence grant of escalation is against the agreement. He has relied upon clause 32 of the agreement, which provides that no claim for price escalation on account of any cause whatever shall be entertained as construction period was not more than 12 months.