- (1.)R.L. Khurana, J.-This appeal, under Section 39 of the Arbitration Act, 1940, has been directed by plaintiff against the order dated 12.12.1996 of the learned Single Judge (Surender Sarup, J.), passed in Civil Suit No. 227 of 1995. The defendants have preferred cross-objections.
(2.)The defendants-Himachal Pradesh State Electricity Board, invited tenders for the construction of civil works of Baner Project. Five tenders were received. Being the lowest, the tender of M/s. Sutlej Construction Company Ltd., Chandigarh, was accepted and the work was accordingly awarded to the said company. Subsequently, the contract came to be rescinded and the plaintiff being the second lowest tenderer, was invited by the defendant to execute and complete the remaining work at the rates and on the terms and conditions which were earlier contracted with M/s. Sutlej Construction Company Ltd. The plaintiff accepted the invitation, except for revision of their rates of open excavation, underground excavation and final concreting. The plaintiff required that the rates as quoted by them in their original tender in respect of these works should be applicable. After considerable correspondence, an agreement came to be entered into between the parties on 21.2.1991. As per the agreement, the plaintiff was to execute the remaining work of Baner Hydel Project at a cost of Rs. 4.20 lakhs within a period of 24 months on the rates quoted by M/s. Sutlej Construction Company Limited.
(3.)'During the execution of the work, disputes and differences arose between the parties relating to performance as also with regard to the application and interpretation of certain terms and conditions of the agreement. Therefore, in terms of Clause 25 of the agreement, the dispute between the parties was referred for determination to the Sole Arbitrator. Mr. O.C. Kaushal, Chief Engineer. Larji Hydel Project, Sarabhai, Bhuntar, District Kullu, thus came to be appointed as the Sole Arbitrator.