LAWS(MPH)-1989-8-73

STATE OF MADHYA PRADESH Vs. RECONDO LIMITED BHOPAL

Decided On August 31, 1989
STATE OF MADHYA PRADESH Appellant
V/S
RECONDO LIMITED BHOPAL Respondents

JUDGEMENT

(1.) THIS is a revision under section 19 of the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983 (hereinafter referred to as 'the Adhiniyam'), against the award dated 12-8-1988, passed by the Madhya Pradesh Arbitration Tribunal, Bhopal, which is in favour of the respondent Company (hereinafter referred to as the 'contractor'), concerning a dispute regarding breach of contract with the State of Madhya pradesh for construction of roads.

(2.) THE principal question which needs decision in this revision is whether the State of Madhya Pradesh (hereinafter referred to as 'the department') had rightfully rescinded the contract in terms of clause 45 of the written agreement entered into between the parties and if not, what should be the correct measure of damages. On the decision of the aforesaid question, the further question that arises for determination is whether the award of the Arbitration Tribunal is liable to be interfered with in exercise of revisional jurisdiction of this Court under section 19 of the Adhiniyam.

(3.) THE relevant facts giving rise to the dispute are as under : The tenders submitted by the contractor were accepted by the Chief Engineer, p. W. D. (East Zone), Raipur, vide communication dated 21-9-1985 for construction of roads at the sites described below : -