UNION OF INDIA Vs. UNION BUILDERS
LAWS(CAL)-1985-2-19
HIGH COURT OF CALCUTTA
Decided on February 22,1985

UNION OF INDIA Appellant
VERSUS
UNION BUILDERS Respondents

JUDGEMENT

ANIL KUMAR SEN, J. - (1.) THIS is an appeal which has lately been assigned to us after remand from the Supreme Court of India. Union of India representing the railway administration is the appellant before us and the appeal is directed against an order dt. May 20, 1983, passed by a learned single Judge of this Court dismissing the appellant's application under S.30 read with S.33 Arbitration Act, which was registered as Award Case No. 200 of 1982. The application has been dismissed solely on the ground of limitation. In order to appreciate and decide the points at issue it would be necessary to refer to certain facts which may be set out briefly as follows :
(2.) THE respondent, Union Builders, entered into an agreement dt. Dec. 29,1965, with the South Eastern Railway administration for supply and loading of ballast at two stations, namely, Ghatsila and Dhalbhumgarh. THE work under the contract was completed on June 30, 1969, but certain disputes and differences arose between the respondent (hereinafter referred to as the contractor) and the authorities of the South Eastern Railway with regard to certain claims put forward by the contractor. Those claims were put forward in the contractor's letter dt. May 5,1972, and those were set out in 12 items as follows : 1) Claim for refund of balance security deposit : Rs. 2,082.00 2) Claim on account of outstanding bills : Rs. 9,520.00 3) Claim for payment of excess quantity supplied : Rs. 63,000.00 4) Claim towards the cost for preparing stacking grounds : Rs. 25,000.00 5) Claim of payment for additional lead involved : Rs. 1,98,000.00 6) Claim for demurrage : Rs. 10,025.00 7) Claim of damages for loss due to stoppage of work : Rs. 1,20,000.00 8) Claim of damages for loss due to irregular supply of rakes : Rs. 4,80,000.00 9) Claim of payment for extra work done with regard to cleaning, levelling and dressing of stacking grounds : Rs. 25,000.00 10) Claim of damages for loss due to non-supply of rakes from July 1967 to September 1967 : Rs. 50,000.00 11) Claim of damages for loss due to insufficient provision of stacking grounds : Rs. 25,000.00 12) Interest Rs. 10,07,627.00 Since the contract incorporated an arbitration clause the dispute so raised by the contractor by the letter, as aforesaid, was referred to arbitration by the joint arbitrators, Sri N. Gopalakraishna and Sri K. S. Guha.
(3.) WHEN the arbitration proceeding was pending on August 10, 1976, the contractor put forward a claim of additional amounts on items 3,4,7 and 11 as above and the contractor further proposed to claim interest at 6% with effect from 1-7-1969 to 31-8-1974 assessed at Rs. 3,47,937/- and for further interest from 1-9-1974 until the payment to be assessed by the arbitrators. The additional amounts claimed on items 3, 4, 7 and 11 were Rs. 8,250/-, Rs. 95,000/-, Rs. 5,000/- and Rs. 6,500/-respectively. The sum total of such additional amounts claimed together with the quantified interest of Rs. 3,47,937/- amounted to Rs. 4,62,687/-. Such additional claim was opposed on behalf of the railway administration and the railway administration insisted that the arbitration should stand limited to the reference already made and the arbitration did proceed accordingly.;


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