H.P.S.E.B. Vs. ANSAL PROPERTIES

JUDGEMENT

(1.) The Himachal Pradesh State Electricity Board (for short HPSEB1) has filed this petition under Article 227 of the Constitution of India, challenging the order dated 12.3.2004 marked (Annexure P -3) and order dated 25.3.2004 marked (Ext. P -5) recorded by sole Arbitrator (respondent No. 2) herein whereby cost -of Rs. 15,000/ - was imposed upon the petitioner -Board during the arbitral proceedings and its application under Sections 12(3) and 13 of the Arbitration and Conciliation Act, 1996 has been dismissed.

(2.) The petitioner -Board and respondent No. 1 had entered into a agreement for the construction of civil work comprising Intake Structure, Link Tunnel, underground Desilting Tank etc. etc. in Distt. Kangra, vide Agreement No. 1/91 dated 21.2.1991. The stipulated time for completion of the said work was for 24 months. Respondent No. 1 -claimant, however, could not complete the said work within the agreed time. Time was extended to the claimant from time to time after reserving the right of the petitioner -Board to recover liquidated damages for the delay in the completion of the works and as such the work finally be completed on 8.4.1997.

(3.) The petitioner -Board imposed compensation for delayed completion of work under Clause 2 of the Agreement amounting to Rs. 68,00,000/ -. A Civil Suit No. 3/200 has been filed before this Court which is pending adjudication.