STATE OF A P Vs. PIONEER BUILDERS A P
LAWS(SC)-2006-9-82
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on September 25,2006

STATE OF ANDHRA PRADESH Appellant
VERSUS
PIONEER BUILDERS, ANDHRA PRADESH Respondents


Referred Judgements :-

GHANSHYAM DASS AND OTHERS V. DOMINION OF INDIA AND OTHERS [REFERRED TO]
L J LEACH AND CO LIMITED VS. JARDINE SKINNER AND CO [REFERRED TO]
SAWAI SINGHAI NIRMAL CHAND VS. UNION OF INDIA [REFERRED TO]
GANGA BAI VS. VIJAY KUMAR [REFERRED TO]
BIHARICHOWDHARY VS. STATE OF BIHAR [REFERRED TO]
P A AHAMMED IBRAHIM VS. FOOD CORPORATION OF INDIA [REFERRED TO]
B K N PILLAI VS. P PILLAI [REFERRED TO]
BHARAT COKING COAL LIMITED VS. RAJ KISHORE SINGH [REFERRED TO]



Cited Judgements :-

JUHI CHAWLA VS. SCIENCE AND ENGINEERING RESEARCH BOARD [LAWS(DLH)-2021-6-26] [REFERRED TO]
STATE OF MEGHALAYA VS. ALBERT STEVEN DIENGDOH [LAWS(MEGH)-2023-7-15] [REFERRED TO]
NIRAMAL BEHERA DALAI VS. STATE OF ORISSA & ANOHER [LAWS(ORI)-2017-9-75] [REFERRED TO]
DEEPAK RAHEJA VS. GANGA TARO VAZIRANI [LAWS(BOM)-2021-10-2] [REFERRED TO]
FR. RALIN DE SOUZA VS. GOA BASKETBALL ASSOCIATION [LAWS(BOM)-2016-3-175] [REFERRED TO]
LUCKNOW DEVELOPMENT AUTHORITY VS. YASHRAJ SINGH & OTHERS [LAWS(ALL)-2017-11-217] [REFERRED TO]
JAHID HUSSAIN VS. IBRAHIM [LAWS(ALL)-2014-4-93] [REFERRED TO]
EASTERN BUSINESS PVT LTD VS. MANIKA DHAR [LAWS(GAU)-2009-2-59] [REFERRED TO]
P DURGA REDDY VS. B YADI REDDY [LAWS(APH)-2014-12-57] [REFERRED TO]
RAGHUBAR DATT MAULEKHI AND OTHERS VS. STATE OF UTTARAKHAND AND OTHERS [LAWS(UTN)-2018-7-63] [REFERRED TO]
SICAL LOGISTICS LIMITED VS. MARG CONSTRUCTIONS LIMITED [LAWS(MAD)-2009-2-74] [REFERRED TO]
Satya Parkash VS. State of H.P. [LAWS(HPH)-2009-9-35] [REFERRED TO]
JAGDISHBHAI GORDHANDAS BOSAMIYA AND ORS VS. HEIRS AND LEGAL REPRESENTATIVES OF PRADEEPKUMAR CHUNILAL BOSAMIYA AND ORS [LAWS(GJH)-2014-4-225] [REFERRED TO]
SANTHAMMA, W/O LATE KUNJURAMAN NAIR VS. KERALA STATE REPRESENTED BY DISTRICT COLLECTOR PATHANAMTHITTA [LAWS(KER)-2019-4-32] [REFERRED TO]
RAIGAD CO-OPERATIVE HOUSING SOCIETY LTD VS. SUMAN EKNATH GAIKE [LAWS(BOM)-2021-9-387] [REFERRED TO]
A P STATE WAKF BOARD VS. SABITA JOSHI [LAWS(APH)-2010-10-62] [REFERRED TO]
ROCHE PRODUCTS (INDIA) PVT LTD. AND OTHERS VS. DRUGS CONTROLLER GENERAL OF INDIA AND OTHERS [LAWS(DLH)-2016-4-566] [REFERRED TO]
MAYA RANI LAHA VS. BIRENDRA NATH AUDDY [LAWS(CAL)-2008-2-85] [REFERRED TO]
SMT. MAMTA MISHRA VS. VIRENDRA KUMAR SHARMA AND ANR. [LAWS(ALL)-2011-2-437] [REFERRED TO]
SURESH GANDHI VS. BATUK RAI DIWAN AND OTHERS [LAWS(CHH)-2016-2-51] [REFERRED TO]
STATE OF MEGHALAYA VS. BISTIMORIAL NONGSIEJ D/O BELSIBON NONGSIEJ [LAWS(MEGH)-2016-9-37] [REFERRED TO]
RAWEN CH. MARAK VS. STATE OF MEGHALAYA [LAWS(MEGH)-2019-2-30] [REFERRED TO]
BHAGABAN KHATUA AND OTHERS VS. STATE OF ORISSA AND OTHERS [LAWS(ORI)-2017-10-74] [REFERRED TO]
RADHA BEHERA AND ANOTHER VS. JAMULA VENKATA RAMMANA AND OTHERS [LAWS(ORI)-2019-3-13] [REFERRED TO]
TRIVANDRUM GOLF CLUB VS. STATE OF KERALA [LAWS(KER)-2009-8-41] [REFERRED TO]
VIPUL PRABHATKUMAR MAHESHWARI AND ORS. VS. BI-CHEM (INDIA) (P.) LTD. AND ORS. [LAWS(CE)-2014-8-123] [REFERRED TO]
YAMINI MANOHAR VS. T. K. D. KEERTHI [LAWS(DLH)-2023-5-44] [REFERRED TO]
AJAY SINGH VS. CHIEF MUNICIPAL OFFICER AND ANOTHER [LAWS(CHH)-2018-9-177] [REFERRED TO]
STATE OF C.G. AND ORS. VS. VINOD KUMAR AGRAWAL AND ORS. [LAWS(CHH)-2018-9-187] [REFERRED TO]
DREYMOOR FERTILIZERS OVERSEAS PTE. LTD. VS. M.V.THEOFOROS-1, A VESSEL FLYING THE FLAG OF PANAMA [LAWS(BOM)-2014-3-40] [REFERRED TO]
STATE OF KERALA VS. SUDHIR KUMAR SHARMA [LAWS(SC)-2013-9-114] [REFERRED TO]
VILUPPURAM TAMIL NADU ELECTRICITY BOARD EMPLOYEES CO OPERATIVE HOUSE BUILDING SOCIETY VS. COMMISSIONER KOLIYANUR PANCHAYAT UNION [LAWS(MAD)-2013-3-277] [REFERRED TO]
BOLLEPANDA P POONACHA VS. K M MADAPA [LAWS(SC)-2008-3-120] [REFERRED TO]
BANYAN TREE HOLDING (P) LIMITED VS. JAMSHYAD SETHNA [LAWS(DLH)-2014-11-173] [REFERRED TO]
MARIA FELICIA D SOUZA VS. LUIS D SOUZA [LAWS(BOM)-2013-5-75] [REFERRED TO 9,18]
ALKA KHEMAKA VS. KISHAN LAKKAR [LAWS(CAL)-2007-3-48] [REFERRED TO]
VOL : 1; SUNNI CENTRAL BOARD OF WAQFS AND ORS VS. GOPAL SINGH VISHARAD AND ORS [LAWS(ALL)-2010-9-626] [REFERRED]
DALVEER SINGH VS. STATE OF U. P. [LAWS(ALL)-2021-2-80] [REFERRED TO]
DILAWAR VS. DES RAJ AND ORS. [LAWS(HPH)-2015-3-50] [REFERRED TO]
ANZAR VS. SREEDEVIYAMMA [LAWS(KER)-2022-5-28] [REFERRED TO]
HARESWAR DEKA VS. SACHIN CHOUDHURY [LAWS(GAU)-2020-1-6] [REFERRED TO]
GENENTECH INC AND OTHERS VS. DRUGS CONTROLLER GENERAL OF INDIA [LAWS(DLH)-2016-4-538] [REFERRED TO]
CHANDER KANTA VS. GOVT. OF NCT OF DELHI [LAWS(DLH)-2021-3-22] [REFERRED TO]
RAGHAV CHADHA VS. RAJYA SABHA SECRETARIAT [LAWS(DLH)-2023-10-65] [REFERRED TO]
BHAGWAN PRASAD KUSHWAHA VS. NARAYAN PRASAD KUSHWAHA [LAWS(CHH)-2009-2-2] [REFERRED TO]
NARENDRA ROAD LINES PVT. LTD. VS. RASHTRIYA ISPAT NIGAM LIMITED [LAWS(ALL)-2015-11-151] [REFERRED TO]
GRAM PANCHAYAT BHADWA PARGANA & DISTT. JALAUN & ANOTHER VS. STATE OF U.P. & 6 OTHERS [LAWS(ALL)-2014-11-398] [REFERRED TO]
SURESH PRASAD VS. SRI. SURAJ KUMAR BHADANI [LAWS(JHAR)-2018-4-229] [REFERRED TO]
MUKHTIARA VS. UNION OF INDIA [LAWS(P&H)-2008-5-43] [REFERRED TO]
ZULFAN ALI VS. SMT. KANTA KUMARI GUPTA AND ORS. [LAWS(HPH)-2010-6-108] [REFERRED TO]
Y SAVARIMUTHU VS. STATE OF TAMIL NADU & ORS [LAWS(SC)-2019-4-150] [REFERRED TO]
NEW INDIA ASSURANCE CO LTD VS. ASHA DEVI GARG [LAWS(RAJ)-2009-5-28] [REFERRED TO]
REKHA VS. VEERMATI [LAWS(ALL)-2012-4-54] [REFERRED TO]
K.A. PAUL VS. K. NATWAR SINGH [LAWS(DLH)-2009-8-276] [REFERRED TO]
VATIKA RESORTS PVT LTD VS. VATIKA GRAND [LAWS(DLH)-2009-3-85] [REFERRED TO]
GYANENDRA PALAI VS. STATE OF ORISSA & OTHERS [LAWS(ORI)-2017-9-79] [REFERRED TO]
PATIL AUTOMATION PRIVATE LIMITED VS. RAKHEJA ENGINEERS PRIVATE LIMITED [LAWS(SC)-2022-8-55] [REFERRED TO]
STATE OF CHHATTISGARH VS. SUB-DIVISIONAL OFFICER [LAWS(CHH)-2018-9-127] [REFERRED TO]
KARUPANNAN GOUNDER VS. POOVATHAL [LAWS(MAD)-2011-8-20] [REFERRED TO]
C DEVADHASAN (DIED) VS. N YESUDHAS [LAWS(MAD)-2011-8-501] [REFERRED]
FARIDHA BEGUM VS. U.M.K. BATCHA [LAWS(MAD)-2017-3-17] [REFERRED TO]
CHIEF EXECUTIVE OFFICER AND VICE CHAIRMAN GUJARAT MARITIME BOARD VS. ASIATIC STEEL INDUSTRIES LTD [LAWS(SC)-2020-11-31] [REFERRED TO]
USHA TRIPATHI VS. CHAKRADHAR TRIPATHI [LAWS(CHH)-2008-9-1] [REFERRED TO]
USHA TRIPATHI W/O CHAKRADHAR TRIPATHI VS. CHAKRADHAR TRIPATHI S/O SHRI RAJKUMAR TRIPATHI [LAWS(CHH)-2008-9-22] [REFERRED TO]
SHABA RAMA NAIK GAONKAR AND ORS. VS. WHITE RAJ RESORT PRIVATE LTD. AND ORS. [LAWS(BOM)-2015-12-119] [REFERRED TO]
DR. SHABA RAMA NAIK GAONKAR VS. WHITE RAJ RESORT PRIVATE LTD [LAWS(BOM)-2015-12-8] [REFERRED TO]
SH. GIAN CHAND VS. GAON SABHA AYA NAGAR AND ORS. [LAWS(DLH)-2009-9-386] [REFERRED TO]
SHUBH MANGAL FOUNDATION VS. SUKHABHAI HIRJIBHAI RAJPUT & 18 ORS [LAWS(GJH)-2013-8-147] [REFERRED TO]
NEW INDIA ASSURANCE CO. LTD. VS. ASHA DEVI GARG [LAWS(RAJ)-2009-5-123] [REFERRED]
MANAGING DIRECTOR CORPORATION LAMTA PROJECT BALAGHAT VS. BHEJANLAL (DEAD) [LAWS(MPH)-2023-2-115] [REFERRED TO]
VIJAY PRAKASH JARATH VS. TEJ PRAKASH JARATH [LAWS(SC)-2016-3-31] [REFERRED TO]
LALMUANPUIA CHAWNGTHU VS. REMCHHUNGA CHAWNGTHU [LAWS(GAU)-2018-10-73] [REFERRED TO]
SATYAPAL SINGH VS. FIRM SWASTIK PLAZA [LAWS(ALL)-2018-11-189] [REFERRED TO]
COMMANDING OFFICER, AIRFORCE, GORAKHPUR AND ORS. VS. SUSHILA DEVI [LAWS(ALL)-2016-2-97] [REFERRED TO]
SHIV RANI VS. DISTRICT JUDGE [LAWS(ALL)-2006-11-245] [REFERRED TO]
VIPUL PRABHATKUMAR MAHESHWARI AND ORS. VS. BI-CHEM (INDIA) (P.) LTD. AND ORS. [LAWS(CL)-2014-8-3] [REFERRED TO]
TRIVANDRAM GOLF CLUB VS. STATE OF KERALA [LAWS(KER)-2010-1-19] [REFERRED TO]
JAMES THOMAS VS. REGIONAL PASSPORT OFFICER [LAWS(KER)-2011-6-134] [REFERRED TO]
KESHAW TIWARI VS. BINDA DEVI [LAWS(PAT)-2007-2-166] [REFERRED TO]
STATE OF BIHAR VS. RAM CHANDRA SINGH [LAWS(PAT)-2020-8-6] [REFERRED TO]
JEETINDER SINGH VS. INDERJIT SINGH BATRA AND OTHERS [LAWS(P&H)-2012-10-567] [REFERRED]
JOGINDER SINGH VS. DESH RAJ [LAWS(HPH)-2013-5-94] [REFERRED TO]


JUDGEMENT

- (1.)These four cross appeals, by special leave, are directed against two judgments and orders, both dated 3.3.1999, rendered by the High Court of Judicature Andhra Pradesh at Hyderabad in Appeals No.2206-2207 of 1996 and 236-237 of 1998. The State of Andhra Pradesh, the first defendant in the suit and plaintiff, namely, M/s. Pioneer Builders, Engineers and Contractors, Hyderabad, hereinafter referred to as "the contractor" are the appellants before us. Since the factual matrix and the questions of law involved in all the appeals are common, these are being disposed of by this judgment. However, we shall refer to the facts of Civil Appeal No.6115/1999 as illustrative.
(2.)Sometime in the year 1988, the Superintending Engineer, Srisailam Right Branch Canal (for short "SRBC"), defendant No.2 in the Suit, issued notice inviting tenders from pre-qualified bidders of eligible source countries, which included India, for the work of excavation, lining and construction of structures of SRBC. It was a time bound project supported by credit loans from the International Development Association and International Bank for Reconstruction and Development.
(3.)The tender of the contractor being the lowest, he was awarded the work valued at Rs.8, 42, 93, 617/-. A formal agreement was executed. Time for completion of the work was thirty six months from the date of handing over of the site. Clause 57 of General Conditions of Contract laid down the procedure for resolution of disputes. It reads thus:
"57. RESOLUTION OF DISPUTES:

1) Settlement of claims for Rs.50, 000/- and below by Arbitration.

All disputes or differences in respect of which the decision, if any, of the Engineer or Employer has not become final and binding as aforesaid, shall on the initiative of either party in dispute be referred to the adjudication as follows:

a) Claims upto a value of Rs. 10, 000/-, Superintending Engineer S.R.B.C., Circle No.III Banganapalli at Nandyal

b) Claims above Rs. 10, 000/- & upto Rs.50, 000/- Chief Engineer, Major Irrigation, Hyderabad The arbitration shall be conducted in accordance with the provisions of Indian Arbitration Act of 1940 or any statutory modifications thereof.

2. Settlement of claims above Rs.50, 000/-, All claims of above Rs.50, 000/- are to be settled by a court of competent jurisdiction by way of Civil Suit."



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