UNION OF INDIA Vs. SISIR SATPATHY

JUDGEMENT

(1.) SHORN of unnecessary details it would be suffice to note herein that one Prana Krushna Satapathy (since deceased) had been awarded with a contract pursuant to tender notice dated 08.09.1989 for supply of 14000 cubic metre of 50 mm. size hard stone ballasts and loading of 18000 cubic metre of ballasts into railway wagons. The said P.K. Satapathy issued a letter of acceptance dated 29.01.1990 with a contract value of Rs.17,52,000/-. The date of completion was 31.03.1992. For the purpose of supply and loading, two separate work orders were issued and after duly signed by the contractor, P.K. Satapathy on 06.02.1990, an agreement was done on 10.05.1990 vide agreement No.19 dated 10.05.1990. The request of the contractor for extension of time was allowed and the extension was granted without penalty up to 31.12.1992 for supply and loading of the ballasts at J.K.Pur Depot. The contractor, thereafter, applied for further extension of time up to 31.03.1993 and continued the loading up to 12.02.1993. The request made by the claimant for extension of time up to 31.03.1993 could not be considered and necessary 7 days and 48 hours notices were issued under Clause-62 of the General Conditions of the Contract (in short G.C.C) and finally the contract was closed by forfeiture of full security deposit of Rs.95,100/- vide the letter dated 21.04.1994.

(2.) THE contract submitted a demand notice under Clauses-63 & 64(i) of the G.C.C. vide his letter dated 30.04.1994. By the order dated 18.01.1997, the Civil Judge(Sr.Division), Ist Court, Cuttack in Title Suit No.85 of 1995 directed appointment of Arbitrators under Clause- 64(a) of the G.C.C. In accordance with the aforesaid direction, Arbitrators were appointed and the contractor as well as the railway administration duly participated in the said arbitration proceeding. On conclusion of the arbitration proceeding, the Arbitrators submitted a reason award on 30.01.2000 before the General Manager, South Easter Railway, Garden Reach, Calcutta and the copy of the said award was also supplied to the contractor-P.K. Satapathy. It appears from the record that the said P.K. Satapathy expired on 19.08.1996 during the pendency of the application for appointment of Arbitrators before the Civil Judge (Sr.Division) Ist Court, Cuttack in T.S. No.85 of 1995 and his legal representatives were substituted by the order dated 15.07.1997.