HIMALAYAN CONSTRUCTION COMPANY Vs. NATIONAL HYDROELECTRIC POWER CORPORATION LTD THROUGH THE CHAIRMAN, HYDROELECTRIC POWER CORPN.LTD.

JUDGEMENT

(1.) The National Hydroelectric Power Corporation (in short "defendants"), vide its letter, dated 9th of January, 1985, accepted the tender of the Plaintiff for construction of approach road from permanent bridge to temporary bridge on left bank of river Ravi at Kheri below the estimated cost i. e. for rupees 4,47,174 against due execution of the arbitration agreement. The work in question was executed and completed on 28 -6 -1985 and not on 18 -6 -1985 as alleged by the Plaintiff By a subsequent extension of time, the plaintiff already executed increased quantity of work valuing at rupees 15,83,748 at the behest of the defendants and on the basis of instructions imparted to it from time to time. Plaintiff submitted its claim vide letter, dated 5 -5 -1986 (Annexure -D2), Subsequently, plaintiff sent another letter, dated 2 -7 -1986 in the form of a notice to invoke Clause 55 of the Arbitration Agreement No. 25 entered into between the parties inter se pertaining to the work in question and referring to the fact that dispute regarding non -payment of final bills details having already been preferred on 5 -5 -1986. He further stated therein that eventually their due payment of final bill may be released within tea days of the receipt of the said notice failing which they shall have no alternative but to approach the appropriate authority for appointment of Arbitrator under Clause 55 of the Agreement. Apart from it, the plaintiff claimed the existence of disputes upto the value of rupees 1,98,855 which were due and payable by the defendants to him pursuant to Clauses 18.2 and 48 of the Agreement. His grouse is that the defendants did not finally settle the claim except making a payment of rupees 2,04,697. Thus, the plaintiff served a notice on 22 -9 -1988 raising a dispute and claiming the following amounts, as detailed below, to be adjudicated through appointment of an Arbitrator as per the terms of the agreement : Claim No. Nature of the Claim Amount claimed Claim No Claim on a/c of unmeasured quantities of earth work (verified at site by the Committee). Rs. 8,11,704.00 Claim No.

(2.) Difference of rate for removal of over burden. Rs. 27,846.00 Rs. 8,38,550.00 Claim No.

(3.) Loss of profit/overhead. Rs. 6, 5,885.00 Claim No.