R.J.SHAH & COMPANY LTD. Vs. H.P.STATE ELECTRICITY BOARD
LAWS(HPH)-1997-8-19
HIGH COURT OF HIMACHAL PRADESH
Decided on August 29,1997

R.J.SHAH And COMPANY LTD. Appellant
VERSUS
H.P.STATE ELECTRICITY BOARD Respondents




JUDGEMENT

M.SRINIVASAN,CJ. - (1.)The appellant and the first Respondent entered into an agreement on 2.12.1967 for the construction of Giri Hydro Electric Project, in District Sirrnaur, in Himachaf Pradesh. The estimated cost of the works was about Rs. 504 lakhs and the Project consisted of the following main structures: - Tender Cost : - Construction of (i) Barrage Across River Giri Rs. 1,77,67,417/ - (ii) Head Race Tunnel Rs, 2,28,92,175/ - (iii) Laying of Penstocks Rs. 54,21,560/ - (iv) Power House Rs. 43,33,955/ - Total Rs 5, 04, 15, 107/
(2.)That agreement was subsequently superseded by another agreement dated 21,9.1979 with reference to the arbitration clause which was found in Clause No. 3.3.22 in the Original Contract Under the new agreement the provision was for three Arbitrators called the High Powered Committee.
(3.)The work was to start from 17.12.1967 and to be completed in 3 years i.e. by 16.12,1970. But the work was not completed by the stipulated date, it was actually completed on 27.2.1978. On the completion of the Project the final bill was settled by the first Respondent at Rs 12,31,56,348. Sut before that there were three references to arbitration and three awards were passed. The first award was passed on 4 12.1970, the second award was on 25.5.1973 and the third award was passed on 20.11.1976. Under the third Award the escalation of prices was taken note of and the rates payable for different works were fixed. As par that award the first Respondent was to pay a sum of Rs. 47 lakhs in addition to the amounts already paid to the appellant, for the work done prior to 30.6.1975. As regards the work done after 30.6.1975 the award directed the first Respondent to pay at the rate shown against each item of work and also observed that the rates shall be adjusted for the various escalations as detailed in the first Respondents letter dated 23.12.1974 reckoning the minimum wages and the various indices obtaining on 30.6.1975 as the base. It is thereafter the work was completed and it is not in dispute that payments were made in accordance with the j rates specified in the aforesaid award.


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