UMRAOSINGH AND CO MAHANAGAR LUCKNOW U P Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) THIS judgment shall also dispose of Miscellaneous (First) Appeal No. 60 of 1965.

(2.) THE facts giving rise to these appeals are that on 14th April, 1952 contract for construction of a bridge on Narmada near Mortakka was granted by the Government to M/s. Umraosingh and Company, which is a partnership firm and Shall hereinafter be referred to as the contractors. THE contract was for a lump sum payment of Rs. 23,49,000/-. According to Clause (13) of the Contract, the works were to be completed within 24 months. Extension of time was, however, contemplated on account of works being altered, varied or added to or on account of any delay by reason of inclement weather or causes beyond the control of the contractors. THE contract contained an arbitration Clause which reads as follows:

(3.) THE works could not be completed even by 31st May 1956. It appears that there was some alteration in design, which was not sanctioned by the Government of India till October 1956. THE time for completion of the works was further extended upto 28th February 1958. THE works were completed within this period. After completion of the works, the contractors claimed additional payment under eleven items. THE Government did not accept these items of claim of the contractors and counter-claimed for supervision charges. THE dispute was referred to arbitration of two arbitrators viz. Shri P. N. Bhalla and Shri G. L. Sharma. THE arbitrators, on 28th October 1960, made an award, which was published on 31st October 1960. THE contractors' claim under item No. 6 was disallowed, but their other claims were allowed to the extent of Rs. 5,63,581/. THE arbitrators also allowed interest on this amount at the rate of six per cent per annum after expiry of two months from the date of award in case of nonpayment of the amount by the Government THE counter-claim of the Government was disallowed. THE award reads as follows :