WAVE INDUSTRIES PVT LTD Vs. GUPTA & COMPANY
HIGH COURT OF UTTARAKHAND
Wave Industries Pvt Ltd
Gupta And Company
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(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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