COMMANDER WORKS ENGINEERS Vs. KESHO RAM SHARMA

JUDGEMENT

(1.) This revision petition is directed against the judgment and decree dated 16.10.2001 passed by Additional Civil Judge (Senior Division), Amritsar by which application filed by Respondent No. 1 (Contractor) for making the arbitral award dated 30.09.1997 Rule of the Court was allowed, objection filed by the Petitioner was dismissed and against the judgment and decree dated 19.04.2004 passed by Additional District Judge, Amritsar whereby the appeal filed by the Petitioner was dismissed.

(2.) In brief, the facts of the case are that C.A. No. CWE/ASR/GE(M)-24/85-86 for 'Provision of Essential Services Addition/Alterations to Certain Buildings and other Allied Service at Amritsar' was entered into between the Commander Works Engineers (Petitioner herein) and Respondent No. 1 on 25.11.1985 for an amount of Rs. 10,36,214.30. The date of commencement and extended date of completion of the work was 10.12.1985 and 06.11.1989 respectively. The final bill was accepted and signed by Respondent No. 1 for an amount of Rs. 1,79,935/- observing "no further claim under the contract beyond the net amount of the bill". However, the amount of final bill was paid to Respondent No. 1 through cheque bearing No. F-993549 dated 31.03.1991 and was received by him under protest. The receipt is undated. However, on 17.05.1991, after the settlement of the final bill, Respondent No. 1 raised some more claims, which were declined by the Petitioner in terms of Clause 65-A of the I.A.F.W.-2249 (General Conditions of Contracts) on the ground that after settlement of the final bill, no further claim can be raised, as a result of which a dispute arose between the parties. Respondent No. 1 requested the Petitioner to refer the dispute to the Arbitrator to decide the claims raised after receiving the amount of final bill under protest and on the refusal of the Petitioner to do so, Respondent No. 1 filed an application under Section 8(2) of the Indian Arbitration Act, 1940 [for short "Act of 1940"] in the Court of Sub Judge 1st Class, Amritsar for appointment of an Arbitrator. The said application was allowed on 07.11.1994 and the Chief Engineer, M.E.S., Amritsar was directed to appoint Superintending Engineer, enlisted on the approved list of the Arbitrators, with the consent of the parties, as an Arbitrator, to proceed in accordance with law to hear and decide the matter in dispute. In terms of the order of the Court, Chief Engineer, AF (WAC) Jalandhar Cantt. Appointed Col. B.J.V. Rao, ACE(Plg) as Sole Arbitrator. In the pleadings submitted on behalf of the Petitioner before the Arbitrator, in defense of the claim set up by Respondent No. 1, it was urged in para 2.1 that "at the outset, it is highlighted that the final bill of the contract agreement was accepted by the claimant without any reservation and the final bill certificate was signed by him clear as per Clause 65-A of IAFW-2249. It is specifically highlighted that

(3.) The Arbitrator, vide his award dated 30.09.1997 awarded Rs. 1,31,785.11 with interest @ 18% per annum w.e.f. 01.04.1991 to 30.09.1997 and future interest from 01.10.1997 to the date of payment or to the date of the decree of the Competent Court whichever is earlier, allowing a grace period of three months from 01.10.1997 to 31.12.1997, during which no interest would accrue if amount of award along with interest up to 30.09.1997 is paid. Thereafter, Respondent No. 1 filed an application under Sections 35 and 36 of the Arbitration and Conciliation Act, 1996 [for short "the Act"] read with Section 151 of the Code of Civil Procedure Code, 1908 [for short " Code of Code of Civil Procedure "] for passing a judgment in terms of the award dated 30.09.1997 in order to make the award Rule of the Court. In the said application, objection was raised by the Petitioner that the final bill was accepted and signed by Respondent No. 1 without any reservation as per Clause 65-A of the I.A.W.F.-2249, but the learned Additional Civil Judge (Senior Division), Amritsar, vide his judgment and decree dated 16.10.2001, allowed the application for making the award Rule of the Court and dismissed the objection of the Petitioner. The statutory appeal filed by the Petitioner to challenge the judgment and decree dated 16.10.2001 was dismissed by the Additional District Judge, Amritsar vide his judgment and decree dated 19.04.2004 and hence the present revision petition was filed by the Petitioner which was admitted on 20.05.2005 and execution in respect of the additional amount of award was ordered to be stayed.