KRISHNA ELECTRICALS Vs. STEEL AUTHORITY OF INDIA LTD.

JUDGEMENT

(1.) HEARD the parties and perused lower Court records. Bokaro Steel Plant at Bokaro. Steel City, an Unit of M/s. Steel Authority of India Limited (hereinafter referred to as the Company) allotted work for modification/retro - fitting of N.G.E.F. panels containing M type Breaker to be replaced by M.E. type in various sub -stations/installations of different shop/unit inside the plant to M/s Krishna Electricals, Bokaro (hereinafter referred to as the Contractor). The work order was issued vide Letter No. CC/ETB/Misc./04/2649/ 93 -2745 dated 8.6.1993. It was to be completed within six months under the supervision of N.G.E.F. Personnel, without extra cost, as per letter dated 5.7.1994. If due to non -availability or shut down of ACBS at work site (sub -station) or due to any reason on the part of, the Company the work could not be completed within the stipulated period of six months, then the Company was to pay extra amount on the time spent for completion of work beyond the said period @ Rs. 1,64,062.50 paise per month.

(2.) ACCORDING to the contractor work was started on 15.12.1993. On 5.7.1994 and 1.8.1994 the contractor requested the Company to extend the time for completion of work for further one year as it could not be completed due to non - availability of ACBS and shut down. A third letter dated 9.10.1995 was also sent for further extension of time for twentyfour months. The Company by letter dated 28.12.1995 (Ext. 19) fore -closed the contract without any financial repercussion on either side. In the said letter it was mentioned that work was started on 20.5.1995, as certified by the Engineer -in -charge and the balance quantity of 45 numbers of panel could not be undertaken due to non -availability of shut clown on account of production target of the Company.

(3.) ON 12.11.1998, the Company filed objections under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act) vide Title (Arbitration) Suit No. 25 of 1998, which was subsequently converted into Misc. (Arbitrar tion) Case No. 35 of 1998. The Contractor filed reply thereto. The Second Subordinate Judge. Bokaro at Chas by impugned judgment dated 30.1.2001 allowed the objections to the Award and set aside the Award dated 26.8.1998. Hence, the Contractor has filed the present appeal under Section 37(1)(b) of the Act.