{"id":209067,"date":"2010-01-28T00:00:00","date_gmt":"2010-01-27T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-b-agarwal-stone-products-vs-u-p-rajya-vidyut-utpadan-nigam-on-28-january-2010"},"modified":"2015-07-09T13:33:34","modified_gmt":"2015-07-09T08:03:34","slug":"ms-b-agarwal-stone-products-vs-u-p-rajya-vidyut-utpadan-nigam-on-28-january-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-b-agarwal-stone-products-vs-u-p-rajya-vidyut-utpadan-nigam-on-28-january-2010","title":{"rendered":"M\/S B. Agarwal Stone Products &#8230; vs U.P. Rajya Vidyut Utpadan Nigam &#8230; on 28 January, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Allahabad High Court<\/div>\n<div class=\"doc_title\">M\/S B. Agarwal Stone Products &#8230; vs U.P. Rajya Vidyut Utpadan Nigam &#8230; on 28 January, 2010<\/div>\n<pre>                                            1\n\n                                                                    Court No. 1\n\nWrit Petition No. 456 (MB) of 2010\nM\/s B. Agarwal Stone Products Limited\nVs.\nU.P. Rajya Vidyut Utpadan Nigam Limited\nand another.\n\n\nHon'ble Pradeep Kant, J.\n<\/pre>\n<p>Hon&#8217;ble Ritu Raj Awasthi, J.\n<\/p>\n<p>        Heard the counsel for the petitioner Sri S.M.K. Chaudhary, learned<br \/>\nSenior Advocate, assisted by Sri Rahul Srivastava and Sri Anil Saran for the<br \/>\nrespondents.\n<\/p>\n<p>        A preliminary objection has been raised by Sri Anil Saran that<br \/>\ncancellation of the contract is covered by the arbitration clause under the<br \/>\nagreement and, therefore, the writ petition straightaway is not maintainable.\n<\/p>\n<p>        He further says that the petitioner has already approached for<br \/>\narbitration in respect of certain claims.\n<\/p>\n<p>        Sri S.M.K. Chaudhary says that the appointment of Arbitrator has been<br \/>\nmade with respect to certain claims, where the order of cancellation of<br \/>\nagreement is not in dispute. Meeting the objection of the respondents, learned<br \/>\ncounsel submitted that the petitioner was granted contract for rock blasting in a<br \/>\nparticular area, which belonged to U.P. Rajya Vidyut Utpadan Nigam Limited<br \/>\nitself, for which agreement was entered into on 9.11.08.\n<\/p>\n<p>        The work was to be completed within six months i.e. upto 19.5.09. On<br \/>\n2.7.09, &#8216;no objection certificate&#8217; was given by the District Magistrate but that<br \/>\nwas subject to removal of huts and residents of that place.\n<\/p>\n<p>        Leaving other facts, suffice it would be to mention that the work could<br \/>\nnot be completed within time provided under the agreement and, therefore, by<br \/>\nmeans of the impugned order dated 4.1.2010, the contract has been cancelled.\n<\/p>\n<p>        The petitioner&#8217;s case is that it cannot be held responsible or guilty in<br \/>\ndelay of the project for the simple reason that the area in question was occupied<br \/>\nby the huts and residents of that place and unless &#8216;no objection certificate&#8217; was<br \/>\ngranted by the District Magistrate, the petitioner could not have undertaken the<br \/>\nwork, a factor which was very well known to the Nigam also and, therefore,<br \/>\nfirstly the period of six months could have been granted with effect from 2.1.09<br \/>\nand thereafter consideration should also have been made to the order passed by<br \/>\nthe Executive Engineer, restraining the petitioner from undertaking the work.<br \/>\nThe prayer for extension of time was also not considered by the respondents.\n<\/p>\n<p>        In nutshell, the sum and substance of the petitioner&#8217;s argument is that it<br \/>\n<span class=\"hidden_text\">                                          2<\/span><\/p>\n<p>was not the fault of the petitioner, because of which the work could not be<br \/>\ncompleted within the time prescribed but, as a matter of fact, Nigam was<br \/>\nresponsible for the delay and that for such default, their agreement of contract<br \/>\ncould not have been cancelled.\n<\/p>\n<p>        The pleas aforesaid, may be the pleas, which can be taken before the<br \/>\nappropriate forum but we are of the considered opinion that in a matter of<br \/>\ncontract, which is private in nature and not statutory, where the breach of any<br \/>\nof the terms of the contract, is alleged or pleaded by either parties, if there is a<br \/>\nprovision for arbitration under the agreement, the parties are to be relegated to<br \/>\nthe remedy of arbitration, unless, of course, there are some exceptional reasons<br \/>\nfor entertaining the petition under Article 226.\n<\/p>\n<p>        What were the terms of the contract under the agreement, how the<br \/>\ncontract was to be executed, which parties are at default and for whose default<br \/>\nwork could not be completed within time, are such questions which require<br \/>\nevidence to be led and can be more appropriately be looked into by the<br \/>\nArbitrator. The High Court under Article 226 cannot allow the parties to lead<br \/>\nevidence in this regard, particularly when the matter arises out of contract.\n<\/p>\n<p>        We, under the circumstances, do not find any reason to bye-pass the<br \/>\nremedy of Arbitration under the terms of the contract, as otherwise also, parties<br \/>\nare bound by the terms of the agreement and if there any such dispute,<br \/>\napproach can be made for appointment of Arbitrator.\n<\/p>\n<p>        Sri S.M.K. Chaudhary in the alternative, also argued and greatly<br \/>\nemphasized that removal of the huts and the residents was not part of the<br \/>\ncontract\/agreement and, therefore, this matter cannot be seen in Arbitration.\n<\/p>\n<p>        We have gone through the agreement and we find that Clause 3 deals<br \/>\nwith &#8216;scope of work&#8217;, which reads as under:\n<\/p>\n<blockquote><p>         &#8220;The work to be performed under this contract consists in<br \/>\n         providing all labour, materials plants equipments temporary<br \/>\n         work, constructional plant, fuel supplies, transportation,<br \/>\n         compressed air and all incidental items not shown or<br \/>\n         specified, but reasonably implied or necessary for the proper<br \/>\n         completion of the work (except items specified to be furnished<br \/>\n         by the purchaser or others) all in strict accordance with the<br \/>\n         drawings. Schedules and specifications and including<br \/>\n         revisions and amendments there to and such detailed<br \/>\n         drawings as may be provided by the Engineer during the<br \/>\n         Execution of work in explanation contract drawings.<\/p><\/blockquote>\n<p>        This clause besides other works includes all incidental items nor shown<br \/>\nor specified and if the petitioner&#8217;s assertion is to be accepted that removal of the<br \/>\nhuts\/residents from the area in question was a must, then it would be an<br \/>\nincidental item for the purpose of contract and, therefore, prima facie, it does<br \/>\n<span class=\"hidden_text\">                                         3<\/span><\/p>\n<p>look like that the matter does not fall within the terms of the agreement.\n<\/p>\n<p>        Even otherwise, Clause 12, which deals with Arbitration, clearly<br \/>\nprovides as under:\n<\/p>\n<blockquote><p>        &#8220;If any dispute, difference or controversy shall at any time arise<br \/>\n        between the contractor on the one hand and the U.P. Rajya<br \/>\n        Vidyut Utpadan Nigam Ltd. and the Engineer of the contract on<br \/>\n        the other touching the contract or as to the true construction,<br \/>\n        meaning and intent of any part of condition of the same or as to<br \/>\n        the manner of execution or as to the quality or description or<br \/>\n        payment for the same or as the true intent, meaning,<br \/>\n        interpretation, construction or effect of the clauses of the<br \/>\n        contract specifications or drawings or any of them or as to any<br \/>\n        thing to be done committed or suffered in pursuance of the<br \/>\n        contract or specifications or as to the mode of carrying the<br \/>\n        contract into or as to the breach or alleged breach of contract or<br \/>\n        as to obviating or compensating for the commission of any such<br \/>\n        breach, or as to any other matter or thing whatsoever connected<br \/>\n        with or arising of the contract and whether before or during the<br \/>\n        progress or after the completion of the contract. Such question<br \/>\n        difference or dispute shall be referred for adjudication to the<br \/>\n        chairman U.P. Rajya Vidyut Utpadan Nigam Ltd. or to any other<br \/>\n        person nominated by firm in this behalf and his decision in<br \/>\n        writing shall be final binding and conclusive, the submission<br \/>\n        shall be deemed to be a submission to arbitration within the<br \/>\n        meaning of the Indian Arbitration Act, 1940 or any statutory<br \/>\n        modification thereof. The arbitrator may from time to time with<br \/>\n        consent of the parties enlarge the time for making in publishing<br \/>\n        the award.&#8221;<\/p><\/blockquote>\n<p>        It cannot be disputed that dispute had arisen with respect to the terms of<br \/>\ncontract, for which the contract has been cancelled for not completing the work<br \/>\nwithin the time prescribed. All such disputes or questions which may be<br \/>\nrelevant for the purpose from both the sides can very well adjudicated upon by<br \/>\nthe Arbitrator.\n<\/p>\n<p>        The petition is dismissed, with liberty to the petitioner to approach the<br \/>\nArbitrator, in case it has not already approached the Arbitrator for the purpose.\n<\/p>\n<p>Dated: 28.1.2010<br \/>\nMFA\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Allahabad High Court M\/S B. Agarwal Stone Products &#8230; vs U.P. Rajya Vidyut Utpadan Nigam &#8230; on 28 January, 2010 1 Court No. 1 Writ Petition No. 456 (MB) of 2010 M\/s B. Agarwal Stone Products Limited Vs. U.P. Rajya Vidyut Utpadan Nigam Limited and another. Hon&#8217;ble Pradeep Kant, J. Hon&#8217;ble Ritu Raj Awasthi, J. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9,8],"tags":[],"class_list":["post-209067","post","type-post","status-publish","format-standard","hentry","category-allahabad-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S B. Agarwal Stone Products ... vs U.P. 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