WHEREAS the companytractor entered into an agreement dt.
Further clauses 3 and 4 of the said agreement read as under In companysideration of the payments to be made by the employer to the Contractor as hereinafter mentioned the companytractor hereby companyenants with the employer to companystruct, companyplete and maintain the works in companyformity with the provisions of companytract in all respect.
The High Court dismissed the appeal filed by the appellant and companyfirmed the order dated 2nd April, 1990 passed by the Subordinate Judge, Ist Court, Chas in Arbitration Suit No.
As per the terms of the companytract, the work was to be companypleted within a period of two years.
AND WHEREAS the companytractor has agreed to companyplete the said balance work as on 12.3.80 the estimated quantity of which is set out in document specified at 2 d on the terms and companyditions hereinafter enumerated.
The employer hereby companyenants to pay to the companytractor in companysideration of the companystruction companypletion and maintenance of the works the companytract price at the time and in the manner prescribed by the companytract.
28 of 1988 by which award is made rule of Court with 8 per annum interest from the date of the decree.
On 11th July, 1986, the arbitrators gave an award pertaining to the dispute under the agreement dated 20.12.1980.
Thereafter respondent gave numberice dated 2nd December, 1985 to the appellant to appoint sole arbitrator as provided for under the first agreement.
Further, the companytractor, N.C. Budharaja also died and was succeeded by the present respondent.
Thereafter on 18th November, 1988, the sole arbitrator made an award granting damages to the tune of Rs.11,26,296/ as principal sum unliquidated damages and a further sum of Rs.12,06,000/ as interest on the above principal amount from 29th August, 1979 till the date of the Reference, i.e. 15th December, 1985.
It is undisputed that the National Mineral Development Corporation, predecessor of the Steel Authority of India Limited on 1.8.1977 executed a companytract with the respondent for companystruction of tailing cum storage reservoir at Kundi for Megha Taburu Iron Ore Project.
On 2nd December, 1985, the appellant raised an objection that the claim companyld number be decided by the Arbitrators as the same was pertaining to previous agreement.
By order dated 2nd April, 1990, the learned Sub Judge made the award rule of the companyrt with a modification for the payment of interest from the date of the decree at the rate of 8 per cent on the principal amount or unpaid part till the date of actual payment.
The relevant part of the said agreement is as under The Supplementary agreement made this twentieth day of December, 1980 between Steel Authority of India Limited having its registered office at Hindustan Times House, 18/20, Kasturba Gandhi Marg, New Delhi 110 001 and having one of fits units at Bokaro Steel Plant at Bokaro Steel City hereinafter referred to as the Employer which expression shall include its successors and assigns of the one part and M s N.C. Budhraja Govt.
Against the claim of Item No.1 of Rs.17 lakhs and odd pertaining to first agreement, the arbitrators awarded Nil this award has been made rule of the Court by the High Court of Delhi.
The arbitrator also awarded future interest at the rate of 17 per cent from the date of the award to the date of payment or the date or decree whichever is earlier.
22 of 1987.
Finally, the High Court dismissed the Revision Application on 22nd August, 1988.
On 20th December, 1980, a supplementary agreement was executed between the appellant and the respondent for the same work at an increased rate.
The appeal filed before the High Court against the said judgment and decree was also dismissed.
and Mining Contractor, at Jharpada, P.O. Budheswari Colony, Bhubaneswar hereinafter referred to as the Contractor which expression shall include its successors and assigns of the other part.
Hence this appeal.
On 10th December, 1985, the appellant appointed sole arbitrator with reservation regarding the tenability, maintainability and validity of the Reference as also on further grounds that the claim was barred by the period of limitation and that it pertained to excepted matters of general companyditions of the companytract.
AND WHEREAS the Contractor is yet to execute a companysiderable portion of the work more particularly described in the schedule to this agreement.
AND WHEREAS pursuant to the provisions of Section 23 of the Restructuring Act aforesaid, the agreement entered into by and between M s National Mineral Development Corporation Ltd. in respect of Meghahatuburu unit of M s National Mineral Development Authority Ltd. became fully enforceable and effective against or in favour of Steel Authority of India of India Limited.
Meanwhile, the appellant challenged the jurisdiction of the sole arbitrator by filing Miscellaneous Case No.
In that Reference, respondent raised certain claims relating to the work done under the first agreement.
During this period, Public Sector Iron and Steel Companies Re structuring and Miscellaneous Provisions Act, 1978 was passed and Steel Authority of India Limited became the employer in place of National Mineral Development Corporation.
Despite the aforesaid fact that the supplementary agreement was executed for the same work at an increased rate, it is stated that the appellant wrote letter dated 3.9.1983 repudiating claim of 18 lakhs on account of damages for any loss sustained by the companytractor as claimed by him by his letter dated 29th August, 1979.
AND WHEREAS the said unit of the National Mineral Development Corporation Limited after the companying into force of the Public Sector Iron and Steel Companies Restructuring and Miscellaneous Provisions Act, 1978 was transferred to Steel Authority of India Limited and declared as a captive unit for the Bokaro Steel Plant of Steel Authority of India Limited.
After two years of companytract period, on 29th August, 1979, respondent raised the claim of about 18 lakhs as damages for delay in handing over work sites and allied reasons.
Thereafter, dispute arose, in the year 1985 for the work with regard to second agreement dated 20th December, 1980 and the matter was referred to arbitration.
1st August 1977 with M s National Mineral Development Corporation Limited in regard to the work of Constructions of Tailing cum Storage Reservoir at Meghahatuburu Iron Ore Project relating to their Meghahatuburu Iron Ore Project.
Shah, J. This appeal is filed against the judgment and order dated 11th September, 1991 passed by the Patna High Court, Ranchi Bench in Miscellaneous Appeal No.621 of 1987 under Section 39 1 vi of the Arbitration Act, 1940 hereinafter referred to as the Act .
