STATE OF ODISHA Vs. RANI CONSTRUCTION PRIVATE LTD

JUDGEMENT

(1.) The appeal was moved on 20/9/2022. On behalf of appellant it was submitted that, award dtd. 11/12/2005 was challenged in the Court below. Said Court by judgment dtd. 15/12/2011 rejected the challenge. Therefore, the appeal.

(2.) Mr. Patnaik, learned advocate, Additional Standing Counsel appears on behalf of appellant and draws attention to paragraph 11 and its sub-paragraphs dealing with claim no.1 on loss of overheads. He submits, there is no dispute that there was delay of 45 months in completing the project, not attributable to respondent. He places sub-paragraph 11.2 and submits, no evidence was laid for purpose of the arbitrator to ascertain the loss, to award general damages on account of loss of overheads.

(3.) He demonstrates from the award, claim no.1 was for loss of overheads and amount awarded Rs.57,13,322.00. He submits, this was done simply on applying Hudson formula. On top of that claim no.3 was for idle charges, also awarded at Rs.12,40,477.00. He submits, both the claims were in nature of damages and by awarding them the arbitrator went beyond contract clause-44. On both claims, the contractor had not given early warning by raising them in terms of clause-32. No evidence was laid, particularly in respect of claim for loss of overheads especially where, he reiterates, idle charges claim had also been awarded.