Singh, J. - (1.) THIS judgment shall also dispose of Miscellaneous (First) Appeal No. 60 of 1965.
(2.) THE facts giving rise to these appeals are that on 14th April, 1952 contract for construction of a bridge on Narmada near Mortakka was granted by the Government to M/s. Umraosingh and Company, which is a partnership firm and Shall hereinafter be referred to as the contractors. THE contract was for a lump sum payment of Rs. 23,49,000/-. According to Clause (13) of the Contract, the works were to be completed within 24 months. Extension of time was, however, contemplated on account of works being altered, varied or added to or on account of any delay by reason of inclement weather or causes beyond the control of the contractors. THE contract contained an arbitration Clause which reads as follows: "17. Provided always that in case any question, dispute or difference shall arise between the E. E. and the contractors: as to what additions, if any, ought in fairness to be made to the amount of the contract by reason of the works being delayed through no fault of the contractors or by reason or on account of any directions or requisitions of the E. E. involving increased cost to the contractors beyond the cost properly attending the carrying out of the contract according to the true intent and meaning of the signed drawings and specification; or as to the works having been duly completed; or as to the construction of these presents; or as to any other matter or thing arising under or out of this contract, except as to matters left during the progress of the works to the sole decision or requisition of the E. E. under clauses Nos. 1, 4, 8 and 9, or in case the contractors shall be dissatisfied with any certificate of the E. E. under Clause 6 or under the provision in Clause 13 or in case he shall withhold or not give any certificate to which they may be entitled; or as to the right of the contractors to receive any compensation; or as to the amount of such compensation payable to them under Clause 18; then such Question, dispute or difference or such certificate or the value or matter which should be certified as the case may be. is to be from time to time submitted to the arbitration of a tribunal composed of one arbitrator nominated by the contractors and one arbitrator nominated by the S. E. In the event of a disagreement between the arbitrators on any matter or matters, such matter or matters shall be referred to an umpire to be nominated by the C. E. and the award of such arbitrators or the umpire is to be final and where necessary to be equivalent to a certificate of the E. E. and the contractors are to be paid accordingly. The works were not completed within 24 months and there was a supplementary agreement between the contractors and the Government on 19th January 1954 by which the time was extended upto 31st May 1956. This agreement proceeds upon the premise that the works could not be completed within 24 months because of circumstances over which the contractors had no control. By this agreement the Government promised to pay a bonus of rupees one lac in case the works were completed within the extended time. In all other respects the terms and conditions of the principal agreement remained in full force. The supplementary agreement, leaving aside its preamble, reads as follows: "1. Notwithstanding anything contained in condition 13 of the principal agreement, the contractor shall duly and properly complete and carry out the said work in every respect to the satisfaction of the Executive Engineer by a date not later than the 31st May 1956 in strict conformity to and accordance with the terms, conditions and specifications in the principal agreement contained. 2. Upon fulfilment and performance by the contractor of the conditions of Clause 1 hereof but in no other case the Governor shall pay to the contractor a bonus of Rs. 1,00,000/- (one lakh) only in addition to the sum payable under the principal agreement. 3. In the event of the failure of the contractor to fulfil and perform the conditions contained in Clause 1 hereof the contractor shall be liable under and subject to the provisions in Clause 13 and other clauses of the principal agreement contained as if this supplementary agreement had never been made and entered into by and between the parties and in all other respects and cases and save as modified hereby the terms and conditions of the principal agreement shall remain in full force and have full effect."
(3.) THE works could not be completed even by 31st May 1956. It appears that there was some alteration in design, which was not sanctioned by the Government of India till October 1956. THE time for completion of the works was further extended upto 28th February 1958. THE works were completed within this period. After completion of the works, the contractors claimed additional payment under eleven items. THE Government did not accept these items of claim of the contractors and counter-claimed for supervision charges. THE dispute was referred to arbitration of two arbitrators viz. Shri P. N. Bhalla and Shri G. L. Sharma. THE arbitrators, on 28th October 1960, made an award, which was published on 31st October 1960. THE contractors' claim under item No. 6 was disallowed, but their other claims were allowed to the extent of Rs. 5,63,581/. THE arbitrators also allowed interest on this amount at the rate of six per cent per annum after expiry of two months from the date of award in case of nonpayment of the amount by the Government THE counter-claim of the Government was disallowed. THE award reads as follows : "We, Prem Nath Bhalla and Ganeshilal Sharma, nominated respectively by the parties, entered into the Arbitration. We inspected the work, had several meetings and have gone through the written notes, pleadings, verbal representations and arguments at length and have also examined several documents. 2. THE Public Works Department was represented by Shri G. L. Kumar, Superintending Engineer (B. & R.) Indore Circle, Indore, and Shri L. H. Bhatia, Executive Engineer, West Nimar Division Khargone. THE contractors were represented by Shri Umrao Singh and Shri Krishna partners of Messrs. Umrao Singh and Co. 3. We hereby make and publish this Award in writing of and concerning the matters referred to us. Our Award against each individual claim is as follows: Claim No. 1: Extra work done due to change in design in Pier No. 4: In respect of this claim of Rs. 3,68,906/- made by the contractors, we award a sum of Rs. 50,000/- (Rs. fifty thousand only). Claim No. 2: Increased cost of labour from June 1956 till actual completion: In respect of the claim of Rs. 4,23,000/- (later modified to Rs. 4,71,443/-) we award a sum of Rs. 2,07,900/- (Rs. two lacs seven thousand and nine hundred only). Claim No. 3: Increase in the cost of steel for the work : In respect of the claim of Rs. 1,81,717/- we award a sum of Rs. 73,269/- (Rs. seventy three thousand two hundred and sixty nine only). Claim No. 4: Difference of price of cement due to increase: In respect of the claim of Rs. 1,27,586/- we award a sum of Rs. 18,286/- (Rs. eighteen thousand two hundred and eighty six only). Claim No. 5: Royalty paid on sand: In respect of the claim of Rs 80,000/- we award a sum of Rs. 32,521/- (Rs. thirty two thousand five hundred and twenty one only). Claim No. 6: Royalty paid on stone: We reject this claim of Rs. 12,000/-. Claim No. 7: Non-supply of steel and cement in 1954: In respect of the claim of Rs. 1,00,000/- we award a sum of Rs. 15,000/- (Rs. fifteen thousand only). Claim No. 8: Compensation for loss of materials during floods of 1956 while concreting Arch No. 13: In respect of the claim of Rs. 21,920/- we award a sum of Rs. 10,428/- (Rs. ten thousand four hundred and twenty eight only). Claim No. 9: Claim for work redone after collapse of Arch No. 12: In respect of the claim of Rs. 81,488/- we award a sum of Rs. 40,500/- (Rs. forty thousand five hundred only). Claim No. 10: Bonus: In respect of the claim of Rs. 1,00,000/- we award the the amount of Rs. 1,00,000 (Rs. one lac only). Claim No. 11: Cartage of cement and steel: In respect of this claim (figure not given) we award a sum of Rs. 15,677/-(Rs. fifteen thousand six hundred and seventy seven only). Supervision Charges: THE counter claim of supervision charges made by the Department for supply of cement and steel is rejected and no claim against the contractors is admitted. Total Award : Our total award against all the claims is Rs. 5,63,581/- (Rs. five lacs sixty three thousand five hundred and eighty one only), which sum shall be paid by the Public Works Department (B. & R.) Madhya Pradesh to Messrs. Umrao Singh & Co. in full settlement of all their claims. If the above amount of the award is not paid within two months of the date of the award, interest at the rate of 6% per annum shall be paid to Messrs. Umrao Singh & Co. by the Public Works Department (B. & R.) Madhya Pradesh from the date of the award to the date of the payment in addition to the amount of the award. THE cost of the Award comprising of the fees of both the arbitrators plus their travelling and other expenses as well as the cost of the stamp paper and legal charges which is Rs. 23,219.14 (Rs. twenty three thousand two hundred and nineteen np. fourteen) shall be shared equally by the two parties.";