- (1.) This Court has come across many cases where there has been protracted litigation between the contractors and the State agencies both State and Centre. The instant case is of such kind where a contract was entered into in respect of work of Four Laning of NH-1 from Km.212.200 to Km.228.000 (Lot PB-1), including road work and 8 No. of bridges. It is a matter of record that the tender was based upon the provisional bills of quantities (Item-rate Contract) and the respondent was awarded the contract on 23.11.1994, which was signed between the parties on 4.1.1995. The date of commencement of the work was 25.3.1995 and the period of completion was 42 months and as a whole upto 24.9.1998. Clauses 6.4, 12.2, 40.2, 42.2 and 69.4 of the contract, already dealt with in extenso and extracted by the Arbitral Tribunal and referred to by the Objecting Court, provided that in the event of any delay in supplying the drawing etc., much less giving decision/instructions by the Engineer, delay in handing over the site free from obstructions and encumbrances, on account of any unforeseeable physical conditions, the contractor shall be entitled for extension of time and as well as payment for the extra cost. It is a matter of record that certain delays during the execution of the work occurred due to the alleged non-fulfillment of the obligations by the objector/employer and a notice dated 22.8.1997 was given at the instance of the respondent while seeking extension of time including the element of extra cost.
(2.) It is the conceded position on record that eight times extension was granted. The actual date of completion as well as extended date of completion of the work, except Ghaggar Bridge was 29.2.2000 and the actual date of completion of Ghaggar Bridge was extended upto 25.11.2000.
(3.) As per the terms and conditions of the Clauses, the matter was referred to the Engineer. The Engineer and the Employer made a determination with regard to Claim No.1 on 4.12.200 and further claims on 16.5.2000, 28.5.2001, 7.6.2001, 29.6.2001 and 4.7.2001. Since the objector did not give any notice within the prescribed period of 70 days on receipt of the Engineer's decision of its intention to invoke arbitration as per Clause 67.1, a dispute arose and the matter was referred to the arbitration on 3.5.2002 concurred by the appellant in respect of the following five claims vide letter of the appellant dated 17.6.2002:- "1) Claim No.1 for additional cost compensation for extended time; 2) Claim No.2 for commercial interest on dishonoured cheques; 3) Claim No.3 for suspension of work on Ghaggar Bridge; 4) Claim No.4 for interest on early recovery of mobilization/machinery advance; and 5) Claim No.5 on account of increase in cost of bricks";