STATE OF RAJASTHAN Vs. SPENCON INDIA PVT LTD

JUDGEMENT

(1.) THE appellants have filed this appeal under Section 39 of the Arbitration Act (for short the Act') read with Section 96 C.P.C. against the judgment and decree dated 17.4.1996 passed by the learned District Judge, Jaisalmer in civil suit no 5/92.

(2.) THE facts relevant for the disposal of this appeal may be stated as follows. The Supdt. Engineer, IGNP, Jaisalmer Circle invited tenders on 2.2.1987 for manufacture and supply of 250 lacs pucca clay tiles of the size 30 cm. x 15 cm x 5 cm. manufactured by hydraulic compression. The estimate cost of the work was Rs. 1.5 crore and the period of completion was 3 years. The earnest money to be deposited was Rs. 3 lacs. The tender of the respondent was approved by the Secretary and conveyed to the respondent through the Addl. Chief Engineer, IGNP, Jaisalmer on 24.8.1987. The work order was given by the Executive Engineer, IGNP, 29th Div., Jaisalmer on 29.10.1987. Agreement No. 21 of 1987 -88 was executed. The stipulated period of commencement was 13.11.1987 and the date of completion was 12.11.1990. Four tenders for manufacture of 250 lacs pucca clay tiles of the size 30 cm. x 15 cm. x 5 cm. by clay extrusion process for kiln nos. 2, 3, 4 and 5 were also invited by the Supdt. Engineer, IGNP, Jaisalmer on 13.10.1987. The estimate cost of each work was Rs. 1.40 crore and completion period provided was three years. Approval was obtained on 24.8.1987. The work orders for kiln nos. 2, 3, 4 and 5 were issued by the Executive Engineer, IGNP, Jaisalmer on 29.10.1987. The stipulated date of commencement was 13.11.1987 and work was to be completed on 12.11.1990. The respondent executed agreement nos. 17, 18, 19 and 20 of 1987 -88. The Govt. of Raj. created one more post of the Chief Engineer at Jaisalmer in connection with the execution of the Indira Gandhi Nahar Pariyojna and the present works directly relate to the office of the Chief Engineer, IGNP, Jaisalmer. At present the officer -in -charge is the Executive Engineer, IGNP, 29th Div., Jaisalmer.

(3.) IN addition to the above terms and conditions, the following special conditions were also provided: