CHAHAL ENGINEERING AND CONSTRUCTION CO Vs. IRRIGATION DEPARTMENT PUNJAB SIRSA
LAWS(SC)-1993-7-7
SUPREME COURT OF INDIA (FROM: PUNJAB & HARYANA)
Decided on July 30,1993

(M/S) Chahal Engineering And Construction Company Appellant
VERSUS
Irrigation Department, Punjab, Sirsa Respondents

JUDGEMENT

SAWANT, J. - (1.) The present appeal arises out of an arbitration proceedings. The respondent -Irrigation Department [the 'Department'] proposed to get a Aqueduct constructed across the Sirsa river for a distance of 15.455 kms. of Sutlej -Yamuna Link Canal. A contract on turn -key basis was entered into between the appellant and the respondent on 19th April 1984 for the total cost of Rs. 6.10 crores. The drawing and design was to be supplied by the appellant for approval by the Department.
(2.) The drawings and designs submitted by the appellant did not show any sealing arrangements with provision for proper bearing pads. Hence, on 6th September 1984, it was decided to adopt pre -stressed concrete super -structure. This involved increase in the quantities. However, the agreement had provided that in case of any deviation in the design, increase in cost will not be charged to the respondent. The appellant later on, however, claimed extra amount on account of the increase in the quantities and costs. These gave rise to a dispute between the parties and ultimately in July 1986, the dispute was referred to the arbitration of Chief Engineer of the respondent, Shri Avtar Singh. The claims preferred by the appellant amounted to Rs. 2.70 crores including the work of the super -structure amounting to Rs. 78 lakhs. On 14th August 1987, Shri Avtar Singh gave his award in favour of the appellant without mentioning any specific amount. He also pronounced an interim award in favour of the appellant amounting to Rs. 55 lakhs, pending the working out of the final amount as per the directions given by him in the award.
(3.) On 16th November 1987, Senior Sub -Judge, Ropar made the award the rule of the Court overruling the objection of the respondent that the final amount having not been specified, the matter be referred back to Shri Avtar Singh.;


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