UNION OF INDIA Vs. VAISHNODEVI CONSTRUCTION

JUDGEMENT

(1.) Heard Learned Counsel for the parties. This appeal is directed against the Judgment dated 17.11.2008, passed by the Learned District Judge, Khurda, at Bhubaneswar, in ARBP No. 31 of 2007, dismissing the application of the Appellant filed under Section 34 of the Arbitration & Conciliation Act, 1996. The brief facts of the case, as detailed in the appeal memo, is that the Appellant invited sealed tender in the prescribed form for execution of "Balance left over works of earth work in formation, construction of bridges & other allied works in Section-M at Talcher end from CH 23000 to CH 24000 (1.00 KM distance) of Sambalpur -Talcher Rail link". The Respondent participated in the tender & the offer made by it was accepted by the Appellant vide letter dated 14.07.1990. The value of the contract work was Rs. 44,68,087/- & the period of completion was 15 months, with effect from 14.08.1990. The contract agreement was executed between the parties on 30.10.1990.

(2.) The Respondent having failed to complete the contract work within the stipulated period, they requested for extension of time & on their request, time for completion of the contract was extended from time to time. Ultimately, the Respondent completed the contract work on 30.11.1996. After completion of the contract work & payment of the final bill, the Respondent raised a claim for compensation on the ground that they sustained loss due to delay in handing over possession of the work site, supply of the plants, lay out of the profile of the drawing & designs. The Appellant having not accepted the claims of the Respondent, the dispute was referred to the sole Arbitrator, Hon'ble Shri Justice S.K. Mohanty, Retd. Judge of this Court, for adjudication.

(3.) The Respondent raised the following claims before the Learned Arbitrator.