M.M.Dutt, J. - (1.) THIS appeal is at the instance of the State of West Bengal and it arises out of a suit instituted by the respondent for recovery of money.
(2.) THE respondent entered into a contract with the appellant for the execution of the following works :-- (1) THE construction of the main hospital building, kitchen and morgue of 58 bedded Sub-Divisional Hospital at Arambagh in the District of Hooghly. (2) THE construction of the infectious wards and staff quarters of the said hospital. The terms of the contract contained in the tender form issued on behalf of the appellant includes a provision for arbitration in Clause 25 thereof which provides inter alia that all questions and disputes relating to the meaning of the specifications, designs, drawings and instructions and as to the quality of workmanship or materials used on the work or as to any other question, claim, right, matter or thing whatsoever, arising out of or relating to the contract shall be referred to the sole arbitration of the Chief Engineer of the department. It further provides that should the Chief Engineer be for any reason unwilling or unable to act as such arbitrator, such questions and disputes shall be referred to an arbitrator to be appointed by the Chief Engineer and that the award of the arbitrator shall be final, conclusive and binding on all parties to the contract.
(3.) IN the suit, the respondent claimed a sum of Rs. 2,99,251.00 as per particulars given below : JUDGEMENT_227_AIR(CAL)_1975Html1.htm Besides the said sum of Rs. 2,99,251.00, the respondent claimed interest on the said amount at the rate of 12 per cent, per annum upto the date of the decree and further interest at the said rate until realisation.;