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TMI Blog2008 (12) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... he contract, other than claims specifically identified, evaluated and expected from the operation of the release by the contractor." 54. Settlement of Dispute (For works costing less than ₹ 50 lakhs). If the contractor considers any work demanded of him to be outside the requirements of the contract, or considers any drawings, record or ruling of the Executive Engineer, KIP Dn. No. VII, Shrigonda on any matter in connection with or arising out of the contract or the carrying out of work to be outside the terms of contract and hence unacceptable he shall promptly ask the Executive Engineer, in writing, for written instructions or decision. Thereupon the Executive Engineer, shall give his written instructions or decision within a period of 30 days of such request. Upon receipt of the written instructions or decision the contractor shall promptly proceed without delay to comply with such instructions or decision. If the Executive Engineer fails to give his decision in writing within a period of 30 days after being requested, or if the contractor is dissatisfied with the instructions or decision of the Executive Engineer, the contractor may within 30 days after receiving the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... awards shall state the reasons for the amount awarded. Neither party is entitled to bring a claim to arbitrator if the arbitrator has not been appointed before the expiration of 30 days after defects liability period. 4. A work order was issued on the same day. The said contract was to be completed by 8.1.1989, i.e. within a period of about 11 months. Appellant failed to complete the work within the stipulated time. He applied for extension which was granted first upto 09.07.1989 and thereafter upto 30.09.1990. Within the said period the work was completed. The measurements of the work undertaken by the appellant were recorded on 26.11.1990. Final bill prepared and paid by the respondent was accepted by the appellant without any demur. 5. Inter alia, on the premise that appellant was asked to do extra items of work, it raised its claims by a letter dated 27.2.1991, which was rejected. Details of the purported extra work done by appellant, however, were not mentioned in the said letter dated 27.2.1991. It submitted another claim giving details thereof by a letter dated 10.6.1991. 6. Appellant by a letter dated 26.9.1991 purporting to invoke Clause 54 of the General Conditions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laims under Clause 54 of the General conditions of the contract along with documentary evidences within the stipulated period i.e. before the expiry of 30 days after defect liability period and as per Clause 55 which states `Neither party is entitled to bring a claim to arbitrator if the arbitrator has not been appointed before the expiration of 30 days after defect liability period.' Defect liability period of this contract expired on 31st May 1991 and the stipulated period of 30 days expired on 30th June 1991. Hence the contractor's appeal for arbitration is hereby rejected 9. A copy of the said minutes of the meeting was sent by the Superintending Engineer along with his letter dated 30.12.1991. A notice, on the premise that disputes and differences arose between the parties within the meaning of Clause 55 of the General Conditions of Contract, was served upon the Chief Engineer asking him to furnish the names of its three officers for appointment of sole arbitrator within 30 days from the receipt thereof. The said request was rejected by the Chief Engineer in terms of his letter dated 26.2.1992, stating: You have given notice under Clause 54 on 26/11/91 to refer the disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has not taken steps under clause No. 55 under defect liability and before expiration of 30 days. The clause No. 19(a) of the contract agreement is in respect of material and workmanship and it defines the defect liability in respect of workmanship and materials and so also the defect liability period is to be counted from the certified date of completion certificate. Under clause No. 26 of the contract agreement, it is the respondents who are required to issue such certificate to the petitioner. The notices were issued by the petitioner under clause Nos. 54 and 55 of the contract but it appears from the record that the respondents did not take any steps to choose their arbitrator. On the contrary, on 9/3/92 the list of three officers was demanded and out of them sole arbitrator was chosen but the respondents have not replied the same. In this manner, the petitioner and respondents could not concur for appointment of arbitrator and the petitioner had therefore no alternative but to resort to provisions of Section 8 of the Arbitration Act. The correspondence produced on record in support of claim under Section 8 of the Arbitration Act by the petitioner is sufficient to come to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it must be interpreted having regard to the language used in it. A bare perusal of clauses 37, 54 and 55 of the General Conditions of Contract clearly shows that the arbitration agreement entered into by and between the parties is not of wide amplitude. In a case where arbitration clause is of wide amplitude, the same may cover also the claims arising during the tenure of contract or thereafter, provided the arbitration clause subsists. 16. Clause 37 imposes an obligation upon the contractor to furnish to the Executive Engineer a release of claims against the Government arising out of the contract other than the claims specifically identified, evaluated and expected from the operation of the release by the Contractor only after completion of the work and prior to payment thereof. There is nothing on record to show that any claim in relation to extra or additional work had been raised by the contractor prior to 27.2.1991 although final measurement had been recorded on 26.11.1990 and the bill has been paid in full and final satisfaction on 4.12.1990. Clauses 54 and 55 of the arbitration agreement must be read together. 17. Indisputably, the contract has been entered into for work ..... X X X X Extracts X X X X X X X X Extracts X X X X
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