DURGA CONDEV PVT LTD Vs. EXECUTIVE ENGINEER BHANJANAGAR

JUDGEMENT

(1.) THE Petitioner -contractor has filed this application under Section 11(4) of the Arbitration and Conciliation Act, 1996 (hereinafter referred as 'the Act' in short) requesting this Court to appoint an arbitrator unconnected with the parties in any manner to settle the dispute between them urging various facts.

(2.) FACTS in brief are stated as hereunder:

(3.) AFTER the contract was awarded in its favour, it mobilized man power and machineries to complete the work within the stipulated time as per the work programme furnished to him along with the agreement. In course of execution of the work, the work operation got frequent suspension by the principal for supply of water to Dhakhanipur reservoir for filling the same to cater the drinking water requirement of adjoining areas. Such suspension was made on eleven times as a result of which the work was suspended for 220 days, i.e., almost 25% of the total contract period for which the Petitioner was forced to incur extra expenditure by way of mobilization, remobilization and demobilization factors of execution, shifting and commissioning of machineries, idle labour and establishment, protection of executed work, removal of silt and debris etc. and in the process the Petitioner incurred huge expenditure over and above the bid price agreed upon by it. The said frequent suspension of work having not been spelt out in the contract agreement, the Petitioner had not accounted for the said cost aspects arising out of the said suspension in its price bid. As such the expenses arising out of the said suspension indirectly or directly was supposed to be reimbursed by the principal for which series of correspondence were made. Finally on 11.7.2000 the Petitioner intimated the opposite party No. 1 that the extra cost on account of such periodical suspension of work has been assessed at Rs. 1,80,56,000.00 and the same being legitimate one deserves to be released in its favour as per provisions in paragraph 44.1(f) and (g). The said letter is annexed as Annexure -3.