UNION OF INDIA Vs. SHASTRI CONSTRUCTION CO

JUDGEMENT

(1.) THERE was a dispute between the Union of India and M/s. Shastri Construction Company, Chandigarh, who had constructed Administrative Block and other O. T. H. Accommodation etc. for the army authorities at Bhatinda. This dispute was referred to Col. A. K. Mullick, VSH of Civil Engineering Department. He made an award on 29-6-1987. The objections against this award were dismissed by Mrs. Rekha Rani Sub Judge I Class, Chandigarh on 2-12-1988 and an appeal against it was dismissed by Shri Babu Ram Gupta, Additional District Judge, Chandigarh on 2-4-1990. Aggrieved against it the present revision has been attempted.

(2.) IT has been alleged that the Arbitrator allowed 15 items of the respondent-contractor whereas he had given details only regarding 6 of them ; that an award of Rs. 2. 70 lacs regarding the prolongation of the contract was unjustified and should not have been allowed ; that sum of Rs. 3. 75 lacs under claim No. 2 has been allowed by the Arbitrator on account of the alleged increase in prices whereas such an increase is permissible only if it was a result of coming into force of any fresh law or statute.

(3.) A perusal of the record shows that the contractor claimed a sum of Rs. 4,50,000/- on account of steep rise in price of building materials and transportation charges due to increase in price of diesel. The claim contains details of escalation of materials including variation in price of material and authentic price index published by the Economic Adviser to Government of India was relied upon and after considering the Charts (A) + (B) when the Arbitrator was satisfied that there was increase in the cost of material it was partially allowed to the extent of Rs. 3,75,000/as given in the award. The learned counsel for the petitioner could not negative the claim No 2 given in detail by the Contractor and the decision arrived at by the Arbitrator in his award dated 29 6. 1987.