MAHANADI COALFIELDS LTD Vs. SRI RAM CONSTRUCTION

JUDGEMENT

(1.) Mr. Mohanty, learned senior advocate appears on behalf of appellants. He submits, impugned is judgment dtd. 24/9/2005 of the Court below in rejecting his client's challenge to award dtd. 31/3/2004.

(2.) He submits, there was executed agreement dtd. 22/12/1997 between respondent and his client, wherein his client was employer and respondent was contractor. The agreement was for construction of 336 'A' type quarters at Lingraj Township of Talcher Area. The contract was valued at Rs.7,13,43,281.28 in the agreement subject to any other sum that may be arrived at under specifications clause. On notice of respondent, arbitration clause in the notice inviting tender, made part of the agreement, was scored out. Parties were aware, therefore, the award of work under the agreement did not contain arbitration agreement/clause.

(3.) On the contractor having procured materials, said to be for purpose of constructing under the agreement, it applied for advance to his client. His client agreed to advance Rs.70.00 lakhs under independent agreement dtd. 9/2/1998. The agreement for extending advance contained arbitration clause.