LAWS(ORI)-2022-1-90

STATE OF ORISSA Vs. ENGINEERS & BUILDERS LTD

Decided On January 04, 2022
STATE OF ORISSA Appellant
V/S
Engineers And Builders Ltd Respondents

JUDGEMENT

(1.) Mr. Babu, learned advocate, Additional Government Advocate appears on behalf of appellants. He submits, State had entered into contract with respondent. As per the contract and pursuant to request made by respondent, there was closure and settlement of final bill. It is only thereafter that the contractor raised dispute and invoked the contract clause regarding appointment of adjudicator. The contractor then invoked the arbitration clause. The arbitrator awarded on extra items, outside scope of the contract. As such this was not appreciated by the learned District Judge in dealing with the petition made under sec. 34, Arbitration and Conciliation Act, 1996. The award ought to have been set aside and should be set aside in appeal.

(2.) Mr. Dwibedi, learned advocate appears on behalf of respondent contractor. He submits, supplementary agreements were entered into, which enlarged scope of the contract to include the six claims that were discussed by the learned Judge in impugned judgment. All claims were not awarded in favour of his client. There is no defect in the award as can be said to be one, which comes within sec. 34. The appeal should be dismissed.

(3.) Appellants/State will be heard in reply on Thursday i.e. 6/1/2022.