UNION OF INDIA Vs. M. MULJEE

JUDGEMENT

(1.) This appeal arises out of the judgment and order of the learned Single Judge of this court whereby and whereunder the application filed by the petitioner herein under sections 30 and 33 of the Arbitration Act, 1940 for setting aside the award was dismissed and also a decree was passed in terms of the award of the learned Arbitrator.

(2.) The respondent claimant entered into a contract for construction of a flyover bridge across the Korba-Gevra Road Railway line to serve Kusumunda for Ws. Western Coalfields Limited (W.C.L.). The respondent contractor started construction work in terms of the contract agreement No.18/Kus/CE/Con/Ser/ 83 dated 5th Oct., 1983 executed between the parties, namely, Chief Engineer (Construction), SE Railway for and on behalf of the President of India and the respondent contractor. The work of construction was required to be completed within eight months i.e. by Feb. 25, 1985, but ultimately the same was completed on April 30, 1987 after the grant of five extensions. With the progress of work respondent contractor submitted running account bills and received periodical payments against such bills. After the completion of the work final bill was prepared and paid on Dec., 1991.

(3.) According to the appellant the respondent contractor accepted the said final bill in full and final settlement of all its claims under the contract after making necessary endorsement and/or declaration in this regard. It was also submitted on behalf of the appellant that an unconditional acceptance of measurement of all the works executed under the contract had also been recorded in the Measurement Book. After a lapse of two years of receiving the payment against the final bill, the respondent contractor served a notice on the General Manager, SE Railway raising claims for payment of further amount even after payment of final bill amount. In the said letter respondent contractor contended that payment of the final bill was received under protest. The respondent also requested the General Manger, SE Railway to make necessary payment of the claimed amount mentioned in the said letter within a reasonable period or otherwise to refer the matter to the Arbitrator for adjudication of the claims of the respondent by arbitration in terms of clauses 63 and 64 of the general conditions of contract.