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Judgment
Claim No.,Brief particulars of dispute,Amount claimed,Amount Awarded
1.,"Claim No.1 Toward balance payment against
the contract","Rs.1,55,65,700.00 Revised
amount Rs.2,68,24,565.00","Rs.1,70,23,006.00
2.,"Claim No.2. Interest on delayed and shor
payment of RARs","tRs.22,90,000.00 Revised
Rs.45,91,000.00","Rs.8,90,800.00
3,"Claim No.3 Damages due to various breaches
by the respondent","Rs.3,57,44,500.00",NIL
4.,"Claim No.4 Under payment as well as denial of
payment for certain legitimate variation","Rs.53,600.00 Revised
Rs.81,592.00","Rs.81,592.00
5.,"Claim No.5 Past, pendent-lite and future
interest @ 18% PA.",,"(a) Past and pendent-lite
interest is Awarded on the
amount of arbitral Award
against claim No1 and 4 @
12% simple interest w.e.f.
30th Mar 2013, a day a(cid:64)er
date of entering into
reference to the date of
Award.
(b) Since the net Award is in
favour of contractor, a period
of three months is allowed to
PETITIONER for makin
payment in terms of this
Award. If the payment is not
made on this date, then the
Awarded amount in favour of
contractor under (a) shall
carry future interest @ 12%
per annum from the day a(cid:64)er
date of publica(cid:36)on of Award
to the date of actual
payament.
6.,Claim No.6 Cost of Arbitration,Rs.500000/-,NIL
(d),"Date of expiry of defect liability period as well as comple(cid:36)on of
Manning and Opera(cid:36)on for work under Item 2 of Schedule 'A
Section XVI","29 Jan 2013
'",
(e),"Date of commencement for work under Item 1 of Schedule 'A
Section XVI for Comprehensive Maintenance",'30 Jan 2013,
(f),Date of completion of Comprehensive Maintenance,29 Jan 2017,
(i) On a/c of materials,"Rs.86,35,918.48",,
(ii) On a/c of labour,"Rs.76,94,005.28",,
(iii) On a/c of fuel,"Rs.3,09,804.81",,
Total,"Rs.1,66,39,728.57",,
(iv) Less 10% agreed during hearing,"Rs.16,63,972.86",,
Net Total,"Rs.1,49,75,755.71",,
Say,"Rs.1,49,75,756.00",,
(a) Up to original date of completion as per Condition 63,"Rs.18,75,805.00",,
(b) Original date of comple(cid:36)on to actual date of comple(cid:36)on
as per formulae","Rs.33,31,229.20",,
,"Rs.52,07,034.20",,
Say,"Rs.52,07,034.00",,
(c) Less 10% of (b) as agreed during hearing.,"Rs.3,33,122.92",,
(d) Net total for labour,"Rs.48,73,911.28",,
(e) Escala(cid:36)on for material and fuel as per empirical
formulae during extended period to date of completion","Rs.45,66,358.77",,
The Contractor shall be entitled to be paid in respect of such claims at the following percentages of the value of work executed on the Site,,,
to the satisfaction of the Engineer-in-Charge:-,,,
(a) For Works not exceeding Rs. 5 lakhs.-90 per cent of the value of work executed.,,,
(b) For Works exceeding Rs. 5 lakhs but not exceeding Rs.,,,
10 lakhs-90 per cent of the value of work executed for the first 5 lakhs and 92½ per cent of the value of work executed for the balance.,,,
(c) For Works exceeding Rs.10 Lakhs-90 per cent of the value of work executed for the first 5 lakhs, 92½ per cent of the value of work",,,
executed for the next 5 lakhs and 95 per cent. of the value of work executed for the balance.,,,
1[The amount so retained from the contractor shall be called retention money and shall be released to the contractor along with the final,,,
bill. However, in case the amount of this retention money is more than Rs. 1.5 lakhs, then after retaining an amount of Rs. 1.5 lakhs or 1%",,,
of the contract amount as executed whichever is more, the balance amount of retention money will be refunded to the contractor on",,,
satisfactory completion of works as certified by the G.E.],,,
Provided further, the Contractor may be paid advance on account to the full value of work executed on the Site on his furnishing",,,
Guarantee Bond(s) or Fixed Deposit Receipt(s) from a Scheduled Bank for the amount of the retention money which should otherwise be,,,
recoverable from him under the contract.,,,
The Guarantee Bond shall be executed for a period and on a form as directed by the Accepting Officer. The Contractor shall further,,,
arrange to extend the period of Guarantee Bond or shall furnish a fresh Guarantee Bond of similar value so as to cover the period till the,,,
payment of the final bill.,,,
In the case of Fixed Deposit Receipts, the same shall be for a period exceeding 6 months beyond the period of contract and shall be",,,
endorsed in accordance with the Govt. Securities Manual for the time being in force. If the Fixed Deposit Receipts are in the name of the,,,
Contractor, they shall be transferred/endorsed to the Accepting Officer concerned in such a way that they can be encashed by the said",,,
Accepting Officer without reference to the Contractor. In the event of delay in the preparation of the final bill, the Contractor shall make",,,
arrangements with the bank for suitable extension of the fixed deposit period.,,,
In the case of Measurement and Lump Sum Contracts the Contractor shall also be entitled to be paid during the progress of the Works 85,,,
per cent. of the value of any material which are in the opinion of the Engineer-in-Charge in accordance with the Contract and which have,,,
reasonably been brought on the Site in connection therewith and are adequately stored and/or protected against damage by weather or,,,
other causes, but which have not• at the time of the advance been incorporated in the Works.",,,
Provided always that payment shall not be made under these periodical certificates in respect of perishable materials (the discretion of the,,,
G.E. as to what is perishable being final and binding).,,,
Any sum due from the Contractor on account of Transport, Stores or any such matter provided by Government shall be deducted from the",,,
first or next subsequent advance.,,,
The G .E. shall from time to time certify the sums to which the Contractor is entitled after retaining the reserve.,,,
Any certificate relating to Work done or materials delivered may be modified or corrected by any subsequent interim certificate or by the,,,
final certificate and no certificate of the G .E. supporting an advance payment shall of itself be conclusive evidence that any Work or,,,
materials to which it relates are in accordance with the Contract.â€,,,
Though Condition 64 of GCC uses the word ‘advance on account’, it is in the nature of payment for the work already done and protects the",,,
employer by providing for retention money against such bill. The employer, therefore, stands fully protected. It also gives the percentage of the value",,,
of work to which the contractor shall be “entitled to be paidâ€. I, therefore, find no merit in the objection raised by the petitioner to the grant of",,,
Claim No.2 in favour of the respondent by the Sole Arbitrator.,,,
As far as Claim no.4 is concerned, the only ground raised in the petition is as under:-",,,
“T) That the Sole Arbitrator has similarly awarded a sum of Rs.81,592.00 against contractor's Claim No. 4 towards extra lead for",,,
disposal of surplus earth without there being any substantiating documents, just on the basis of a hypothetical claim preferred by contractor",,,
and hence same is liable to be set aside.â€,,,
The Arbitrator while granting the said claim has relied upon letters dated 2nd March, 2010 and 12th February, 2011 and concluded as under:-",,,
“75. If any be seen from above correspondence that Contractor is due the amount claimed for disposal of surplus earth from site to gate,,,
of the complex and then from gate to 5 km away from the gate to the place decided by MES in consultation with users. Disposal of earth to,,,
5km has been considered by Contractor in Claim no. 1.,,,
In view of above claim is sustained and in award a sum of ₹ 81,592.00 (Rupees Eighty One Thousand Five Hundred Ninety Two only) in",,,
favour of contractor against this claim.â€,,,
It is not shown by the petitioner how the above finding of the Arbitrator is wrong. I, therefore, find no merit in the objection raised by the petitioner",,,
against the grant of such claim.,,,
The last challenge of the petitioner is to the grant of interest on the amounts awarded in favour of the respondent. It is contended that as the,,,
amounts had been crystallized only during the arbitration proceedings, interest should not have been granted in favour of the respondent.",,,
I am unable to agree with the submission made by the counsel for the petitioner. The Arbitrator having found that the amounts were due and,,,
payable to the respondent, has rightly granted interest thereon. Rate of interest also cannot be said to be unreasonable or fanciful.",,,
In view of the above, I find no merit in the present petition and the same is accordingly dismissed with costs quantified at Rs.25,000/-.",,,