TULSI NARAYAN GARG Vs. M. P. ROAD DEVELOPMENT AUTHORITY
LAWS(SC)-2019-8-128
SUPREME COURT OF INDIA (FROM: MADHYA PRADESH)
Decided on August 30,2019

Tulsi Narayan Garg Appellant
VERSUS
M. P. Road Development Authority Respondents

JUDGEMENT

Ajay Rastogi, J. - (1.) The instant appeals are directed against the common judgment dated 26th February, 2018 and order in review petitions dated 7th September, 2018 of the High Court of Madhya Pradesh filed at the instance of the present appellant quantifying the liquidated damages assessed by the officer of the respondents to be recoverable pending adjudication before the Arbitral Tribunal constituted under the Madhya Pradesh Madhyastham Adhikaran Adhiniyam, 1983 (hereinafter being referred to as "Adhiniyam, 1983").
(2.) The facts in brief culled out from the record and relevant for the purpose are that the appellant is a proprietorship firm registered as Class 'A' contractor. In response to the notice inviting tender for construction and maintenance of rural road under the Pradhan Mantri Gram Sadak Yojna for package no. 3712 and package no. 3714 consisting of two roads(i.e. constructed one way relating to Vijaypur to Chota Kheda way (2 km) and second, relating to Sonthava to Advad way (7.750 km) change 5240 meter in DPR slab culvert and protection wall, tender was awarded to the appellant and in furtherance, the work order was issued on 6th October, 2008 and pursuant thereto, agreement no. 11 and agreement no. 12 was executed between the appellant and the first respondent. As per the work order, the date of completion was twelve months, i.e. till 21st October, 2009. The first respondent, invoking clause 52 of the work agreement nos. 11 and 12, terminated the agreement for slow progress of work on 7th October, 2013 and 27th October, 2014 respectively.
(3.) The first respondent invoking clause 44.1 and 53.1 of the agreement served a notice to the appellant on 9th October, 2015 for determining the liquidated damages that came to be challenged by the appellant by filing of a Writ Petition No. 7003 of 2015 before the High Court of Madhya Pradesh. In the first instance, that writ petition came to be disposed of vide order dated 6th September, 2016 with liberty to the appellant to challenge order of termination before the Arbitral Tribunal under the provisions of the Adhiniyam, 1983. In terms of the liberty afforded, the appellant filed a reference petition against the termination of agreement and damages claimed by the first respondent before the Madhya Pradesh Arbitral Tribunal under Section 7 of the Adhiniyam, 1983 and as informed to this Court that is still pending adjudication before the Arbitral Tribunal.;


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