LAWS(CAL)-2008-5-4

UNION OF INDIA Vs. BUDHLANI ENGINEERING PVT LTD

Decided On May 07, 2008
UNION OF INDIA Appellant
V/S
BUDHLANI ENGINEERING PVT. LTD. Respondents

JUDGEMENT

(1.) THIS letters patent appeal is at the instance of the Union of India and is directed against the order dated April 29, 2005 passed by a learned Single Judge of this Court by which His Lordship dismissed an application under Sections 30 and 33 of the Arbitration Act, 1940 (hereinafter referred to as the Act) for setting aside the award passed by the Arbitrator.

(2.) THE respondent-contractor agreed to carry out a civil construction work worth Rs. 19,47,050/ -. The time-limit for completion of the work was fixed as one year from the date of awarding the contract. The work was to be completed by 10th February, 1990 but it was actually completed on 13th June, 1991 and as such, there was a delay of more than 16 months in completing the work. The claimant-contractor, after completion of the work, submitted bills and there was dispute with regard to the quantum of the final bill. The final bill was not paid for a long time despite repeated requests and representations.

(3.) ACCORDING to the respondent, it however, received part of such payment and the same was received under protest and without prejudice to its claim for further sum. The final payment was made when the respondent was forced to strike out the endorsement "with protest". The respondent apparently recorded full and final satisfaction and certificate of clearance of all dues. The respondent, however, contended that such endorsement was forced upon it by withholding the amount of the final bill.