STATE OF ORISSA Vs. BIRAT CHANDRA DAGARA

JUDGEMENT

(1.) The present appeal has been filed at the instance of State of Orissa against the judgment and order dismissing its objection against the award passed by the Arbitration Tribunal, Orissa in Arbitration Case No. 30-C of 1985.

(2.) The respondent contractor obtained the work of widening a portion of N. H.- 42 on the basis of the agreement No. 104-F2-19808l at an agreed cost of Rs. 56,86,233/ -. The contractor was to complete the work within 24 calendar months from the date of commencement of the work. The work commenced on March 25, 1981. Contractor could not progress with the work in accordance with the specified time schedule. He submitted revised programme for execution of the work, but he could not adhere even to the revised schedule. Ultimately contractor abandoned the work in an incomplete state after execution of work worth Rs.13,30,741/-. Both sides have accused each other for being responsible for delay in execution of the work. As the respondent-contractor left the work incomplete, the contract was rescinded by the appellant after giving a show cause notice. Appellant State also levied compensation for inability to execute the assigned work in accordance with the agreed time schedule.

(3.) The appellant-State of Orissa stated that from the very inception the contractor failed to show desired progress. In spite of reminders, he could not improve his performance and left the work incomplete. The balance work had to be re-tendered and State had to incur an extra expenditure of Rs. 10,73,000 / - for completion of the work. A penalty of Rs,10,73,000/- was imposed on the contractor. In spite of notice contractor did not attend final measurement. On the basis of the measurement recorded by the Department and after adjustment of penalty net value of the final bill worked out to be a negative amount of Rs. 236/-.