SHYAMA CHARAN AGARWAL AND SONS Vs. UNION OF INDIA
SUPREME COURT OF INDIA (FROM: BOMBAY)
SHYAMA CHARAN AGARWALA AND SONS,UNION OF INDIA
UNION OF INDIA,SHYAMA CHARAN AGARWALA
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D. P. MOHAPATRA, J. -
(1.)LEAVE is granted in all the SLPs.
(2.)THESE appeals are directed against the judgment of the High Court of Bombay at Goa, dated 29/02/2000. Indeed both the parties to the dispute have filed appeals assailing the judgment of the High Court.
M/s. Shyama Charana Agarwala and Sons (hereinafter referred to as 'the Contractor') were entrusted with the work of construction of married accommodation for 80MCPOs/CPOs/80Pos and 16 sailors at Goa Naval Area, Varunapuri, Mangor Hill, Vasco-da-Gama, by the Union of India (for short 'the UOI') through the Chief Engineer (Navy), Cochin Naval Base under the agreement No. CEC-/GOA-12 of 1990-91. The work order was placed vide letter No. 8319/43/E-8, dated 20-7-1990 for Rs. 2,62,44,057-94. The date of commencement of the work was 16-8-1990 and the work was to be completed by 15-11-1991.
The same contractor by another agreement No. CEC-/GOA/40 of 1991-92 was entrusted with the work of construction of married accommodation for MCOs/CPOs and JCOs at Goa. The work order was placed vide letter No. 8305/88/E-8, dated 5-2-1992. The date of commencement of the work was 24-2-1992 and the work was to be completed by 23-2-1994.
(3.)BEFORE the work could be completed certain differences/disputes arose between the parties. Under clause (70) of the General Conditions of the Contract all disputes [(other than those for which the decision of the CWE (Commander Works Engineer) or any other person is by the contract expressed to be final and binding)] shall, after written notice by either party to the contract to the other of them, be referred to sole arbitration of an Engineer Officer to be appointed by the Authority mentioned in the tender document. In the said clause it was further provided that unless both the parties agree in writing, such reference shall not take place until and unless after completion or alleged completion of the work or termination or determination of the contract under Conditions 5, 56 and 57 thereof. The contractor gave notice for appointment of arbitrator specifying the items of dispute for adjudication. The UOI agreed for appointment of arbitrator. Accordingly Shri M. V. S. Rao, Chief Engineer (Air Force), Bangalore was appointed as the Sole Arbitrator vide the Engineer-in-Chief's letter dated 30/12/1993. The nature of disputes raised in both the cases are similar though the amounts claimed against them differ. The disputes referred for arbitration were enumerated at Appendix 'A' to the said letter. In the contract agreement No. CEC-/GOA-12/1990-91 the items of claim were as follows :
In respect of the contract agreement No. CEC-/GOA/40/1991-92 the following claims were made by the contractor :
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