UNION OF INDIA Vs. VIRENDRA BROTHERS

JUDGEMENT

(1.) This revision petition seeks to challenge the order dated 20.12.1992 passed by the Senior Sub Judge, Bathinda.

(2.) M/s. Virendra Brothers, Engineers and Contractors moved an application under Section 20 of the Indian Arbitration Act for issuance of directions to the petitioners to file the contract in the Court for appointment of an Arbitrator as per condition No. 70 of the IAFW-2249 and for referring the dispute between the parties for decision to the Arbitrator. According to the applicant, it had entered into a contract with the petitioners for construction of Raw Water Reservoir and Raw Water Sump and Clear Water Reservior etc. at village Lalgarh Jattan vide contract No. CE/BTZ 11/81-82. As per the contract, after the work was completed and handed over to the petitioners, the applicant was required to carry out some additional work. The additional work was also covered and regulated by the terms of the original contract and this too was duly completed as per the requirements of the petitioners. According to the applicant, an amount of Rs. 12,12,547/- was payable to it and despite verbal and written requests, the same was not being released. A letter had been written by the applicant to the petitioners for referring the matter to arbitration, but the Chief Engineer had, through letter dated 26.5.1989 refused to appoint the Arbitrator. Hence the application.

(3.) In the written reply, it was submitted by the respondents (petitioners herein) that a final bill had been submitted by the applicant and according to condition No. 65, no further claim could be entertained after submission of the final bill. It was also submitted that the applicant had not served any notice immediately after completion of the work and all claims of the applicant had been fully paid. On the basis of the stand taken by the parties, following issues were framed: