HARYANA STATE ELECTRICITY BOARD Vs. SUNIL ENGINEERING WORKS

JUDGEMENT

(1.) This petition has been directed against the judgment dated 31-5-1997 passed by the District Judge, Ambala. By this judgment, the learned District Judge has affirmed the findings of the learned lower court on issues No. 1 and 2 and has dismissed the appeal filed by the petitioner electricity board. The learned District Judge has further held that the respondent contractor will be entitled to interest at the rate of 12% from the date of the award till its realisation.

(2.) Briefly states the facts of the case are that Haryana State Electricity Board (hereinafter referred to as 'HSEB') had invited tenders for the work of manufacturing and supply of pre cast P.C.C. tiles for western Yamuna canal hydro electric project. M/s. Sunil Engineering Works (hereinafter referred to as the Contractor) submitted its tender which was accepted by HSEB and the work was allotted to it on certain terms and conditions. The work was completed on 28-12-1984. Thereafter the contractor served a demand notice dated 24-10-1988 (Ex.A-4) on HSEB by which it raised certain claims for the recovery of the amount.

(3.) Since the amount claimed vide demand notice dated 24-10-1988 was not paid to the contractor by HSEB, the contractor filed an application under Section 20 read with Section 8 of the Arbitration Act (hereinafter referred to as 'the Act') for appointment of an Arbitrator as per arbitration clause of the agreement between the parties. As per clause 25 (A) of the agreement the dispute between the parties was to be referred to the sole arbitration of Superintending Engineer HSEB Western Yamuna Canal Hydro Electric Project, Yamuna Nagar. The aforesaid clause 25-A of the agreement reads as under :-