GOVERNOR OF ORISSA Vs. HINDUSTAN CONSTRUCTION CO. LTD.

JUDGEMENT

(1.) VALIDITY as award supported by reasons made under the Arbitration Act, 1940 (hereinafter referred to as "the Act" as amended in Orissa from time to time is subject matter in this appeal under Section 39(1)(vi) of the Act.

(2.) ON the basis of tender published on 16.7.1979, offer of respondent (contractor) was accepted for construction work of concrete -cum -massonary dam of Upper Kolab Multipurpose River Project. Work order was issued on 2.1.1981 on basis of written agreement of that day where it was stipulated that work was to be completed by 30.9.1982. Under the agreement contractor was to be paid escalation charges as per terms therein. Work was completed in 1985 for which extences were given by appellants till end of December, 1985. Escalation charges were paid by Executive Engineer in the running bills till 31.3.1985 after which no payment in this respect was made. A portion of running bill also remained unpaid. Added to it security deposit was not refunded. For receiving payment of the dues with interest, contractor made claims and thereafter referred the dispute to Arbitration Tribunal constituted under Section 41A of the Act as per clause in the written agreement. Dispute as per the claim statement of the contractor before the Arbitration Tribunal involved claim of Rs. 76,67,671.35 paise as revealed in the award.

(3.) ARBITRATION Tribunal found the disputes to have involved claim of more than one crore rupees. Accordingly, it directed State Government to exercise power under Section 41A(1) Proviso of the Act to constitute a Special Arbitration Tribunal and refer the dispute to it. Pursuant to such direction, State Government constituted the Special Arbitration Tribunal with one retired Judge of High Court and referred the dispute by notification dated 6.5.1988, one of the terms and conditions of the constitution was that it shall make the award within 120 days of the first sitting. After receipt of the notification, Special Arbitration Tribunal issued notice to parties on 14.5.1988 and hand the first sitting on 28.5.1988. It made and signed the award on 10.2.1989 and filed the same in Court on 14.2.1989. Appellants filed an application to set aside the award. The same having been refused, this appeal has been filed.