MAYUR ENGINEERS Vs. UNION OF INDIA

JUDGEMENT

(1.) The brief facts of the case are that a contract agreement was entered between the objector, i. e. Garrison Engineer Jutog, Shimla and the Contractor i e. M/s Mayur Engineers, Garkhal, Solan, for the work allotted to the latter regarding provision of water supply at Karcham, This contract between the parties is dated 23 -12 -1982. The amount of the contract was to the tune of Rs 5.43,962. The date of the commencement of the work, as agreed upon between the parties was the same i. e. 23 12 -1982, and as per the terms of the agreement it was to be completed by 3 -1 -1983 However, the date of completion was further extended upto 2 -1 -1984 on the request of the plaintiff contractor He failed to complete the work even within the period thus extended. This compelled the defendant to issue notices bearing various dates. However, in spite of the same the plaintiff contractor failed to complete the work. Ultimately, the defendant had no option but to cancel the contract vide order dated 10 -6 -1988.

(2.) Cancellation of the contract resulted in disputes/differences between the parties, which, in turn, led the contractor to invoke the arbitration Clause (No.70) incorporated in the contract agreement.

(3.) The plaintiff -contractor applied to this Court vide Civil Suit No, 90 of 1988 for appointment of an Arbitrator, During the pendency of the same, the defendant appointed an Arbitrator. Therefore, the suit was disposed of by this Court on 11 -1 -1989. The Arbitrator thereafter entered into the reference and finally announced the award on 11 -6 -1993. Ultimately, the award was filed in this Court, to be made a rule of the Court.