ASSAM STATE ELECTRICITY BOARD Vs. BUILDWORTH PVT LTD

JUDGEMENT

(1.) This first appeal is arising out of the judgment and order dated 22.12.2000 passed by the learned Civil Judge, Kamrup, Guwahati in Misc. (Arb) Case No.6 of 1999, whereby the learned trial judge has affirmed the award of the arbitrator and has made it a Rule of the Court. Being aggrieved and dissatisfied with this judgment, the defendants have preferred this appeal.

(2.) We have heard Sri B. D. Das, learned Standing Counsel for the appellants, i.e. M/s Assam State Electricity Board and its officers ('A.S.E.B.' in short). We have also heard Sri S. Sharma, learned counsel appearing for the plaintiff/respondent at length. Also perused the award of the arbitrator as well as the impugned judgment and the relevant records.

(3.) The facts leading rise to the filing of this appeal are that the respondent was awarded the work of supply and installation of circulating water-piping system for B.T.P.S. vide Work Order No. BTPS / PM/ Tech-31/Stage-II/2853-58 dated 06.09.1982. This work order contained exhaustive terms and conditions to be complied with by either party. The value of the contract work was fixed at Rs.36,82,687.50 and the work was to be executed within a period of 12 months from the date of issue of the letter of intent, i.e. by 25.06.1983. Subsequently the date for completion of the work was extended till 06.09.1983. However, the respondent could not complete the work even within this extended period. It is an admitted fact that the work was completed only on 28.05.1985 and one portion of the work of TG-IV was completed on 31.01.1986. It may also be mentioned here that the work order also provided escalation clause of prices of materials, fixing the outer ceiling of Rs. 9,16,825/-. According to the respondent, the work could not be executed within the stipulated period since the appellants failed to provide clear front/site for installation of pipes etc. and because of this delay on the part of the appellants they were liable to pay idle charges of labour, machineries, equipments and further escalation in the prices of certain consumable goods, with interest there on.