Decided on October 10,2012

Wave Industries Pvt Ltd Appellant
Gupta And Company Respondents


- (1.) Heard Mr. V. K. Kohli, Senior Advocate assisted by Ms. Vandana Singh, Advocate for the appellant and Mr. S. K. Posti, Advocate for the respondent.
(2.) The appellant before this Court in order to construct a sugar mill at Bidwi in District Saharanpur, Uttar Pradesh vide its notice dated 20.12.1989 floated a tender for construction of the residential quarters of categories A, B, C, D, E & G besides two dormitories and a guest house. It was also to cater for provision of arranging water supply, sanitary and connected electrical works. The tender contained preprice bills of quantities and the invitees were supposed to quote their percentage over or below the rates proposed by the Corporation in the bill of quantity. The entire work was to be completed within 12 months and tenders were to be submitted upto 30/01/1990 and opened on 30.1.1990 itself. M/s Gupta & Company submitted its tender quoting 5.9 % over and above the rates inserted in the bill of quantity. However, during the negotiations, it was reduced to 4.45 % and subsequently the offer was accepted on 22.5.1990 and thereafter a formal agreement was executed on 7.6.1990. The work was to be completed within one year i. e. on or before 7.6.1991. The work, however, could not be completed for some reasons or the other and an extension of time was prayed for by M/s Gupta & Company. Time was, however, not extended and the appellant vide its letter dated 13/20 July, 1992 withdrew the remaining work. Feeling aggrieved, M/s Gupta & Company went to Lucknow to call upon the Managing Director of the respondent Corporation but nothing materialized between the two and in fact the appellant floated a fresh tender for completing all the remaining job. M/s Gupta & company, on the other hand, filed a writ petition being no. 35813 of 1992 before the High Court of Judicature at Allahabad challenging the action of the respondent Corporation. After hearing the parties, the Hon'ble High Court passed an interim order on 23.9.1992 which reads as under: "Until further order the Respondents authority if already not given to somebody else, will not give the contract to any body else in pursuance to order dated 15.9.92 and dated 10.9.92"
(3.) Meanwhile, M/s Gupta & Company invoked the arbitration clause in their contract and moved the Civil Court. The learned Civil Judge (Senior Division), Dehradun passed the following order on 7.12.2004. "Now the Vidhik Sachiv and Legal Remembrancer, Uttaranchal State is appointed as the Arbitrator to decide the disputes between the parties. He, either himself will decide the dispute or will entrust the job to an Engineer equal to Chief Engineer's rank. " ;

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