RAMSHARAN AND RAMDAYAL DAU Vs. HIDUSTAN STEEL LTD

JUDGEMENT

(1.) The appellant M/s Ram Sharan and Ramdayal Dau Company, Durg, hereinafter referred to as the contractors, entered into a contract with the respondent Hindustan Steel Limited, Bhilai, hereinafter referred to as the Company, for construction of 600 units of single -roomed quarters in Bhilainagar. The parties signed a contract, being Contract No C/37/62, dated 17th March 1962. The contract contained an arbitration clause (Clause 61) which provided for reference to arbitration of two arbitrators, one nominated by each party, to resolve "any question, dispute or difference. upon or in relation to or in connection with the contract."

(2.) THE work was started on 1st September 1961 and completed on 31st July 1963. The final bill was prepared on 12th April 1963 and signed by both the parties. The bill contained an endorsement made by the Divisional Engineer of the Bhilai Steel Plant as follows:

(3.) THE only question before us is whether the payment made by the Company and accepted by the contractors in full and final settlement of the final bill extinguished the arbitration clause in the contract and the arbitrators have no jurisdiction to entertain the dispute raised by the contractors.