UNION OF INDIA Vs. SAMBRA COUNSTUCTION AND AGENCY

JUDGEMENT

(1.) This appeal under Section 39 of the Arbitration Act, 1940 for short 'Act" is directed against the common judgment and order passed on 31.3.2000 by the Civil Judge, Senior Division No. 1, Guwahati in T.S. Arb. 60/90; T.S. Arb. 46/94; and T.S. Arb. 202/90.

(2.) The facts leading to the present appeal, in brief, are that the respondents - M/s. SMBRA Construction and Agency, herein after referred as the 'Contractor' for convenience, entered into an agreement with the appellant N.F. Railway, hereinafter referred as Railways, for execution of earth work in embankment between Kamakhya and Azara Section and construction of minor bridges and sub-structures of major bridges etc. The value of contract was at Rs.2,29,37,405.00. The agreement was entered into on 28.3.89 and some work towards earth work was done by the Contractor. However, due to certain exigencies, i.e. declaration of Dipar Beel as a reserved forest, alignment was required to be diverted and the Contractor was asked to execute the work on the diverted alignment. However, the Contractor showed his unwill ingness and thereafter, the contract was terminated. A dispute arose in between the Contractor and the Railways in the matter of the above contract and as per the terms of the contract, N. Biswas and MK Dev Verma were appointed as joint Arbitrators to arbitrate over the dispute.

(3.) The Contractor made as many as 11 (eleven) numbers of claims for total sum of Rs. 76,98,133.53p. There were other 7 (seven) claims towards interest, taxes, arbitration costs etc. The Arbitrators vide their joint award on 15.3.93, awarded sum of Rs.9,87,257.00 to be received by the Contractor and also directed the Contractor to return back the mobilisation advance paid by the Railways to the Contractor amounting to Rs.22,93,740/-.