KHUB CHAND TYAGI Vs. STATE OF H.P.

JUDGEMENT

(1.) Works "Remodeling of Sewerage Scheme to Manali Town (SH: C/O Treatment work near Tibetian Colony for right bank" was awarded to M/s. Khub Chand Tyagi, Engineers and Contractors, hereinafter referred to as the Contractor , by the State of Himachal Pradesh through its Executive Engineer, Irrigation and Public Health Division, Kullu and a formal agreement was executed between the parties on the standard contract form in terms of Agreement No. 1 of 1992-93.

(2.) Disputes, having arisen between the parties, in respect of certain claims by the Contractor and counter claims by the State, were referred to the sole arbitration of the Superintending Engineer, Arbitration, Himachal Pradesh Public Works Department, Solan, by the Chief Engineer (North, I.P.H. Dharamshala) in March 6, 1997 in terms of Clause 65 of the contract agreement. The works were to commence on June 22, 1994 and completed by December 21, 1994. However, the date for the completion of the works was extended by the Department till December 31, 1996.

(3.) The Arbitrator made his award on November 27, 1997 allowing some of the claims of the Contractor as also some of the counter claims made by the Department. Against the various claims made by the Contractor, the following award was made: Sr. No. Description of Claim Amount Demanded Amount Awarded Remarks 1 2 3 4 5 1. Work done. Rs. 3484986 modified to Rs. 43,04679 Rs. 28,69757 2. Expenditure on infrastructure Rs. 2,52,087.50 3. Cost of material at site. Rs. 68250 Modified to Rs. 1,83,434 Rs. 55,030 4. Cost of plant and machinery. Rs. 1,60,000 Rs. 64,000 5. Cost of shuttering and scaffolding. Rs. 2,56,000 Rs. 76,800 6. Escalation of labour Rs. 3250463 &7 and material under. Clause 60 of agreement. Rs. 9,67,450 Rs. 6,86,676 8. In built profit on balance work. Rs. 16,55766 Nil (1) Shim. L.C.] M/S. KHUB CHAND TYAGI v. STATE OF HP. 281 9. 10. Security deposit. Infructuous exp. incurred. Rs. 1,50,000 Rs. 1,80,000 Rs. 1,00,000 Nill 11. Transportation of Staff and labour. Rs. 20,000 Nil. 12. Amount withheld. Rs. 4,97,231 Nil. 13. Interest @24%. @12% per annum simple interest on Rs. 33,35,833 for two years till date of award. 14. Arbitration cost. Amount not specified Total: Nil. Total Rs. 38,52,263.