INDIAN BUILDERS JAMSHEDPUR Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) ARBITRATION Appeal No. 19 of 2007 has been filed on behalf of the Indian Builders (herein-after to be referred as 'contractor') against the judgment dated 14.06.2007 passed by the learned Sub-Judge-1, Jamshedpur in Misc. Arbitration Case No. 11 of 2004 whereby sub- claims so far as the claim no. 3 on account of under utilized overheads, claim no. 4 on account of loss due to under utilized tools, plants and machineries has been disallowed. Arbitration Appeal No. 18 of 2007 has been filed by the State of Jharkhand against the self same judgment contending inter- alia that the contractor was not entitled to the awarded amounts and the counter-claim has not been considered. As both the appeals arise out of the same judgment and Award, they were heard together and are being disposed of by this common judgment.

(2.) IT may be noted that in both these appeals only the aforesaid judgment passed by the learned Sub-Judge has been challenged by the parties and not the Award.

(3.) IT appears that against the claim no. 3 on account of under utilized overheads to the tune of Rs. 1,97,55,000/=, the Arbitrator awarded a sum of Rs. 49,24,000/=-; against the claim no. 4 on account of loss due to under utilized tools, plants and machineries to the tune of Rs. 1,21,27,000/=, the Arbitrator allowed the claim of Rs. 37,50,000/-. The Arbitrator has given good reasons for allowing the said claims to the extent indicated above. Learned Sub-Judge disallowed these claims on the ground that they were exorbitant.