CHANDA ENGINEERS (INDIA) LTD., RE ARBN Vs. STATE OF WEST BENGAL
HIGH COURT OF CALCUTTA
Chanda Engineers (India) Ltd., Re Arbn
STATE OF WEST BENGAL
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Deb, J. -
(1.) This application has been made under Sec. 41(b) read with item 4 of the Second Schedule of the Indian Arbitration Act for the following reliefs:
(a) For a temporary injunction restraining the Respondent State of West Bengal, its servants and agents from terminating the said agreement, without first obtaining an award or from terminating the said agreement, without giving a reasonable and adequate extension of time for completion of the order under the said agreement pending the said arbitration;
(b) And further an order restraining the Respondent its servants and agents from imposing and/or levying any penalty on the Petitioner pending the said arbitration proceeding;
(c) For ad -interim orders in terms of prayers (a) and (b) until disposal of the present application;
(d) For such further and other order or orders and directions as may deem meet and just.
(2.) By an agreement in writing dated February 11, 1966, the Petitioner agreed to do various works relating to Kangsabati Project for the State at an estimated cost of about Rs. 70 lakhs. By another agreement dated July 14, 1966, the Petitioner was exempted from carrying out a part of the said works and consequently the estimated cost was reduced to Rs. 45 lakhs.
(3.) It was admitted by both parties that the Petitioner was to complete the entire works within February 11, 1968 and that the, said time was made the essence of the said contract by Clause 2 of the said agreement dated February 11, 1966, with a provision for extension of such time as provided in Clause 5 which is set out below:
If the contractor shall desire an extension of the time for completion of the works on the grounds of his having been unavoidably hindered in its execution, the contractor shall give an immediate report of such hindrance to the Divisional Officer in writing and if he shall desire an extension of time for completion of the work on the ground thereof he shall apply in writing to the. Divisional Officer within 7 days of the date of cessation of such hindrance on account of which he desires such extension as aforesaid and the Divisional Officer shall, if in his opinion (which shall be final) reasonable grounds be shown therefore, authorise such extension of time, if any, as may, in his opinion, be necessary or proper.;
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