UNION OF INDIA Vs. D D SARMA

JUDGEMENT

(1.) This appeal has arisen out of the judgment and decree dated 26.8.92 passed by the Asstt. District Judge , Sonitpur, Tezpur in Money Suit (Arbitration) Case No. 12/90.

(2.) The Chief Engineer, Project Vartak, Director General. (Border Roads) hereinafter referred to as 'the Chief Engineer' flouted a tender for construction of six permanent major Bridges on Lekhabali Basar- Along Road in Arunachal Pradesh and the last date of filing tender was 25.8.1983. Respondent contractor Mr D.D. Sarma hereinafter referred to as the contractor submitted a tender. Thereafter certain negotiations took place and the contractor offered certain concessions and ultimately the entire work amounting to Rs. 1,91, 35,000/- was allotted to the contractor after acceptance of the tender including the 25 numbers of correspondences between the parties. The contract agreement was duly signed between the parties and a number was allotted to the said contract being CE(P) VARTAK/ MB-I/83-84. The work was duly completed by the contractor and payment was received within extended time granted by the Chief Engineer.

(3.) However, the contractor raised certain claims for refund of rebate and for compensation etc. for delay in handing over of site by the Chief Engineer which resulted in loss. The latter disputed the claim whereupon a dispute arise between the parties. The dispute was referred to Brig SB JOSHI, the sole arbitrator who by his award dated 5th October 1990 awarded a certain amount. Thereupon the contractor filed a case being Money Suit (Arbitration) No. 12/90 before the Asstt. District Judge, Sonitpur, Tezpur under Sections 14(2) and 17 of the Arbitration Act, 1940 for short 'the Act'.The learned Asstt. District Judge after necessary hearing decreed the suit with costs alongwith interest at the rate of 18% from the date of the filing of the award till realisation thereof. Hence the present appeal.