RAM NARAIN MADAN Vs. STATE OF H.P.

JUDGEMENT

(1.) The work for the construction of Civil Hospital building at Una (Block A) was allotted by the State of H.P. through the Executive Engineer (B&R), H.P.P.W.D., Una to the contractor M/s. Ram Narain Madan Contractors and Engineers, 313, Mahesh Nagar, Ambala Cantt (Haryana) against agreement No. 8 of 1981 -82. The said agreement has an arbitration clause being clause No. 25. Subsequently, a dispute arose regarding the execution of the work between the parties giving rise to claims and counter claims between them.

(2.) In pursuance of the arbitration clause No. 25 in the said agreement, the Engineer -in -Chief, H.P.W.D., Shimla, vide his office memo, dated 19 -12 -1989 referred the dispute between the parties for arbitration to the Superintending Engineer, Arbitration, H.P.P.W.D., Solan. Initially, Shri R.P. Malhotra, Superintending Engineer (Arbitration), H.P.P.W.D., Solan entered upon the reference on 22 -1 -1990 and on his transfer, Shri R.K Kaura took over the charge. On his transfer Shri D. N. Handa took over the charge and on the transfer of the latter, Shri S.S. Juneja took over the charge. He also resigned. Ultimately, Shri R.C. Gupta was appointed as Arbitrator, being the Superintending Engineer (Arbitration) by the Engineer -in -Chief vide office Memo, dated 22 -8 -1994.

(3.) He entered upon the reference on 8 -9 -1994 and conducted hearings and concluded the case on 22 -4 -1995. The time for conducting the hearing and signing/publishing of award was extended upto 20 -6 -1995 on the request of both the parties. Ultimately, he made is award on 8 - 6 -1995. As a result thereof, he has awarded a sum of Rs. 5,47,238 plus interest at the rate of 12% per annum simple from 9 -7 -1985 to the date of realisation of payment or the date of decree whichever is earlier.