STATE OF M.P. Vs. SEW CONSTRUCTION LTD.

JUDGEMENT

(1.) State of Madhya Pradesh through its instrumentalities has filed this Arbitration Revision being aggrieved by award dated 26.11.2008 passed in Reference Case No.6/08 by M.P. Arbitration Tribunal, Vindhyachal Bhawan, Bhopal, in the case of M/s. S.E.W. Construction Ltd. v. State of M.P. (Water Resources Department), whereby on the ground of expenditure incurred by the respondent in bringing sand from Mahuar river as per the terms and conditions of sanction granted by the Superintending Engineer in terms of the provisions contained in clause 3.11(A), Reference Case has been allowed and Arbitration Tribunal has directed to pay such difference amount on account of cost incurred by the contractor in bringing sand for the purpose of construction from a distant lead alongwith interest at the rate of 9% from the date of filing of the reference petition.

(2.) Learned counsel for the State submits that State had issued tender notice No.1/1992-93 for the construction of Masonry Dam from RD 80M to 543M of Madikhed Dam. The tender of the respondent/contractor was accepted on 6.11.1993 for an amount of Rs.1,22,81,86,600/-. Thereafter a contract was entered into between the parties and as per para 4.3.29.2 of the agreement for any kind of dispute, the respondent was to first approach petitioner No.3 and in terms of such clause respondent/Contractor submitted an application dated 10.11.2006 raising claims for extra payment and same was rejected vide memo dated 14.12.2006. It is submitted that though the limitation for preferring his claim was 28 days as per the agreement, but the respondent approached the Tribunal on 10.12.2007, thus, the entire claim of the contractor is time barred.

(3.) It is also submitted by learned counsel for the State that whole controversy hinges on interpretation of clause 3.11(A) which reads as under :-