- (1.) This appeal is filed against the judgment and order dated 11/09/1991 passed by the Patna High Court, Ranchi Bench in Miscellaneous Appeal No. 621 of 1990 under S. 39 (1) (vi) of the Arbitration Act, 1940 (hereinafter referred to as "the Act"). The High Court dismissed the appeal filed by the appellant and confirmed the order dated 2/04/1990 passed by the Subordinate Judge, Ist Court, Chas in Arbitration Suit No. 28 of 1988 by which award is made rule of Court with 8% per annum interest from the date of the decree.
(2.) It is undisputed that the National Mineral Development Corporation, predecessor of the Steel Authority of India Limited on 1-8-1977 executed a contract with the respondent for construction of tailing-cum-storage reservoir at Kundi for Megha Taburu Iron Ore Project. As per the terms of the contract, the work was to be completed within a period of two years. During this period, Public Sector Iron and Steel Companies (Restructuring and Miscellaneous Provisions) Act, 1978 was passed and Steel Authority of India Limited became the employer in place of National Mineral Development Corporation. Further, the contractor, N. C. Budharaja also died and was succeeded by the present respondent.
(3.) After two years of contract period, on 29/08/1979, respondent raised the claim of about 18 lakhs as damages for delay in handing over work sites and allied reasons. On 20/12/1980, a supplementary agreement was executed between the appellant and the respondent for the same work at an increased rate. The relevant part of the said agreement is as under :- "The Supplementary agreement made this twentieth day of December, 1980 between Steel Authority of India Limited having its registered office at Hindustan Times House, 18/20, Kasturba Gandhi Marg, New Delhi-110 001 and having one of fits units at Bokaro Steel Plant at Bokaro Steel City (hereinafter referred to as the (Employer) which expression shall include its successors and assigns) of the one part and M/s. N. C. Budhraja Govt. and Mining Contractor, at Jharpada, P. O. Budheswari Colony, Bhubaneswar (hereinafter referred to as the "contractor") which expression shall include its successors and assigns of the other part. Whereas the contractor entered into an agreement dated 1/08/1977 with M/s. National Mineral Development Corporation Limited in regard to the work of "constructions of Tailing-cum-Storage Reservoir" at Meghahatuburu Iron Ore Project relating to their Meghahatuburu Iron Ore Project. And WHEREAS the said unit of the National Mineral Development Corporation Limited after the coming into force of the Public Sector Iron and Steel Companies (Restructuring and Miscellaneous Provisions) Act, 1978 was transferred to Steel Authority of India Limited and declared as a captive unit for the Bokaro Steel Plant of Steel Authority of India Limited. And WHEREAS pursuant to the provisions of S. 23 of the Restructuring Act aforesaid, the agreement entered into by and between M/s. National Mineral Development Corporation Ltd. in respect of Megha-hatuburu unit of M/s. National Mineral Development Authority Ltd. became fully enforceable and effective against or in favour of Steel Authority of India Limited. And WHEREAS the Contractor is yet to execute a considerable portion of the work more particularly described in the schedule to this agreement. And WHEREAS the contractor has agreed to complete the said balance work as on 12-3-80 the estimated quantity of which is set out in document specified at 2 (d) on the terms and conditions hereinafter enumerated. " Further clauses 3 and 4 of the said agreement read as under :- "3.In consideration of the payments to be made by the employer to the Contractor as hereinafter mentioned the contractor hereby covenants with the employer to construct, complete and maintain the works in conformity with the provisions of contract in all respect.;