STATE OF RAJASTHAN Vs. MURARI LAL SINGHAL, PWD

JUDGEMENT

(1.) Both these appeals have been filed by the appellant against the judgment dated 17.03.2008 passed by District Judge, Dholpur in application under section 34 of the Arbitration and Conciliation Act,1996 (to be referred as Act of 1996).

(2.) Brief facts of the case are that the State of Rajasthan (to be referred as Department) allotted the work of restoration of existing damaged CD Works of Dholpur-Soneka Gurja Road Via Van Vihar vide Agreement No.29/1990-91 to M/s. Murari Lal Singhal (to be referred as contractor). Department vide order dated 12.11.1990 directed the contractor to start the work amounting to Rs. 11,80,922/-, the schedule date to start the work was 06.12.1990 and completion date was 05.06.1991. The contractor started the work however the work could not be completed and the prescribed time therefore the claimant requested for extension of time and the time was extended by the Department. When the department failed to pay the running bills submitted by the contractor then the contractor filed an application for appointment of an arbitrator to the department and the department vide order dated 20.05.2004 appointed Shri N.P. Mathur Retd., Chief Engineer P.W.D. as sole arbitrator. That after appointment of arbitrator, the claimant filed its statement of claim before the Learned Arbitrator and total five claims were submitted by the contractor amounting to Rs. 6,84,584/-. The contractor also requested for awarding 18% interest per annum. The department submitted reply to the claim and denied the averments. The Learned Arbitrator framed following issues:-

(3.) The Learned Arbitrator after considering the evidence submitted by both the parties allowed the claim for a sum of Rs. 3,55,349/- in favour of the contractor alongwith interest @ 18% per annum.