STRUCTURE INDIA Vs. STATE OF WEST BENGAL

JUDGEMENT

(1.) This Appeal has been filed against the judgment dated 1st November 1990, whereby a learned Judge of this Court set aside the award on an application filed by the State of West Bengal, the respondent herein, under sections 30 and 33 of the Indian Arbitration Act, 1940.

(2.) In April 1977, the Executive Engineer, Burdwan Division No. 1, Public Works Department of the Government of West Bengal invited a tender being Tender No. 4/Burdwan-1 of 1977-78. It was for construction of the Administrative Building (Purta Bhavan) at Burdwan. The estimated value of work put to tender was Rs. 65,25,455/-. The tender was not an item rate one. In page 7 of the price schedule to the tender, against item No. 49C, a specific price rate was mentioned for the white washing work. The rate fixed was Rs. 47.50 per square meter. The appellant submitted its tender agreeing to carry out the work mentioned in the said tender at 5% above the rates shown in the price schedule of the probable items with approximate quantity. Appellant's such tender was accepted by a letter dated 14th May 1977, by the Superintending Engineer, PWD, Western Circle No. 1. It was accepted for the amount of Rs. 68,51,728/- as against the estimated amount of Rs. 65,25,455/- which had been put to tender. The work was to be completed within 24 months i.e. by 13th May 1979. However, the appellant completed the work on 30th April 1981.

(3.) After completion of the work the concerned department prepared the final bill payable against the contract. The appellant examined the bill. By a letter dated 27th May, 1982, the appellant pointed out that the white washing rate at which the payable amount had been calculated in the final bill, was not correct. The appellant contended that the rate should have been Rs. 47.50 'per square' meter as mentioned against item No. 49C of the specification price schedule to the tender, and not Rs. 47.50 'per % square meter' as mentioned in the final bill.