{"id":79325,"date":"2009-01-30T00:00:00","date_gmt":"2009-01-29T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-krishna-construction-co-vs-engineer-in-chief-on-30-january-2009"},"modified":"2018-08-30T16:09:45","modified_gmt":"2018-08-30T10:39:45","slug":"ms-krishna-construction-co-vs-engineer-in-chief-on-30-january-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-krishna-construction-co-vs-engineer-in-chief-on-30-january-2009","title":{"rendered":"M\/S Krishna Construction Co vs Engineer-In-Chief on 30 January, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Punjab-Haryana High Court<\/div>\n<div class=\"doc_title\">M\/S Krishna Construction Co vs Engineer-In-Chief on 30 January, 2009<\/div>\n<pre>        IN THE HIGH COURT OF PUNJAB AND HARYANA\n                     AT CHANDIGARH\n\n                          Arbitration Case No. 62 of 2007\n                          Decided on : 30.1.2009\n\n\n\nM\/s Krishna Construction Co.                            ....Petitioner\n\n\n                  VERSUS\n\n\nEngineer-in-Chief, Haryana and others        ....Respondent<\/pre>\n<p>CORAM:-HON&#8217;BLE MR. JUSTICE HEMANT GUPTA.\n<\/p>\n<\/p>\n<p>1. Whether Reporters of local papers may be allowed to see the judgment ?\n<\/p>\n<p>2. To be referred to the Reporters or not ?\n<\/p>\n<p>3. Whether the judgment should be reported in the Digest ?\n<\/p>\n<p>                    -.-\n<\/p>\n<p>Present:-   Shri Manoj Kumar Sood, Advocate, for the petitioner.<\/p>\n<p>            Shri Ajay Gupta, Additional AG, Haryana.\n<\/p>\n<p>\nHEMANT GUPTA, J (Oral).\n<\/p>\n<\/p>\n<p>            The petitioner has sought appointment of an Arbitrator in<\/p>\n<p>respect of non-payment of due amount of contract for providing Hard<\/p>\n<p>Shouldering on Palwal Yamnua Bridge Road in District Faridabad.<\/p>\n<p>            The petitioner was allotted a contract for providing Hard<\/p>\n<p>Shouldering on Palwal Yamuna Bridge Road (0 to 15.41 Kilometres), in<\/p>\n<p>Faridabad District, amounting to Rs.48.50 lacs approximately, vide letter of<\/p>\n<p>allotment dated 5.5.1999. The work was to be completed within six months.<\/p>\n<p>As per the petitioner, the specification of the Draft Notice Inviting Tender,<\/p>\n<p>was changed, which increased the cost. The petitioner completed 10% of the<\/p>\n<p>total agreed contract and a sum of Rs.13 lacs became payable, but due to<br \/>\n Arbitration Case No. 62 of 2007                    (2)<\/p>\n<p>shortage of LOC\/funds, the payment was not made in time. The work came<\/p>\n<p>to stand still and that instead of making payment, the respondents imposed<\/p>\n<p>penalty under Clause-II of the contract agreement. The material brought for<\/p>\n<p>the purpose of execution of the work could not be utilised and the labour<\/p>\n<p>also remained idle due to change of specification and delay in taking<\/p>\n<p>decision by the department. The bitumen for execution of the work has also<\/p>\n<p>not been issued and on account of shortage of LOC, there was no chance to<\/p>\n<p>complete the work. Subsequently, the estimate of the road was proposed to<\/p>\n<p>be de-sanctioned and a fresh estimate with the changed specification was<\/p>\n<p>prepared. The changed specification was not within the scope of the<\/p>\n<p>contract agreement. Thus, the petitioner raised a claim of Rs.16.49 lacs,<\/p>\n<p>excluding interest and cost on account of various disputes said to be arising<\/p>\n<p>between the parties. The petitioner submitted a final bill dated 23.8.2004<\/p>\n<p>and made a request for appointment of an Arbitrator on 23.9.2004. On<\/p>\n<p>account of failure of the respondents to appoint an Arbitrator, the petitioner<\/p>\n<p>invoked the jurisdiction of this Court vide the present petition filed on<\/p>\n<p>24.4.2007.\n<\/p>\n<p>             A perusal of the documents attached with the petition shows<\/p>\n<p>that on 23.8.2004, the first and final bill amounting to Rs.56,668.89p was<\/p>\n<p>accepted, though the said amount was adjusted towards the amount of work<\/p>\n<p>done at the risk and cost of the petitioner.\n<\/p>\n<p>             In reply, it has been pointed out that the petitioner has not<\/p>\n<p>deposited the security as per Clause 25-A of the contract agreement<\/p>\n<p>amounting to Rs.1,27,050\/-, therefore, the present petition is not<\/p>\n<p>maintainable. It is also pointed out that the petition for appointment of an<\/p>\n<p>Arbitrator is badly time barred as the work was completed by other Agency.\n<\/p>\n<p> Arbitration Case No. 62 of 2007                    (3)<\/p>\n<p>It is pointed out that the petitioner failed to complete the work despite good<\/p>\n<p>persuasion and under compulsive circumstances, the respondents have<\/p>\n<p>initiated action under Clause-II of the agreement as the petitioner miserably<\/p>\n<p>failed to complete the work within the stipulated period as per the<\/p>\n<p>agreement. It is pointed out that the Engineer-in-Chief , Haryana, PWD<\/p>\n<p>(B&amp;R), is empowered for appointment of an Arbitrator, subject to deposit of<\/p>\n<p>security @ 7.5% of the amount claimed by the petitioner. The petitioner has<\/p>\n<p>not deposited the security even when called upon to do so by the<\/p>\n<p>respondents vide letter dated 26.10.2005.\n<\/p>\n<p>            During the course of hearing, learned counsel for the petitioner<\/p>\n<p>has stated that the petitioner shall deposit the necessary security amount<\/p>\n<p>within a period of two months and therefore, the respondents are bound to<\/p>\n<p>appoint an Arbitrator. As per the respondents, the Arbitrator is required to<\/p>\n<p>be appointed by the Engineer -in-Chief, Haryana, PWD (B&amp;R) Branch,<\/p>\n<p>Chandigarh in terms of sub-Clause 2 of Clause 25-A of the agreement. The<\/p>\n<p>relevant Clause reads as under:-\n<\/p>\n<blockquote><p>                   &#8220;All disputes of differences in respect of which the<br \/>\n                   decision is not final and conclusive shall at the request in<br \/>\n                   writing of either party, made in communication sent<br \/>\n                   through registered A.D. Post be referred to the sole<br \/>\n                   arbitration of any serving Superintending Er. or Chief Er.<\/p><\/blockquote>\n<p>                   of Haryana PWD B &amp; R Branch to be nominated by<br \/>\n                   designation by the Engineer-in-Chief Haryana PWD B &amp;<br \/>\n                   R Branch at the relevant time, it will be no objection to<br \/>\n                   any such appointment that the arbitrator so appointed is a<br \/>\n                   Government servant or that he had to deal with the<br \/>\n                   matters to which the contract relates and that in the<br \/>\n                   course of his duties as a Government servant he had<br \/>\n                   expressed his views on all or any of the matters in<br \/>\n Arbitration Case No. 62 of 2007                   (4)<\/p>\n<p>                  dispute. The Arbitrator to whom the matter is originally<br \/>\n                  referred being transferred or vacating his office his<br \/>\n                  successor in office as such shall be entitled to proceed<br \/>\n                  with the reference from the stage at which it was left by<br \/>\n                  his predecessor.\n<\/p>\n<p>                                In case the arbitrator nominated by the<br \/>\n                  Engineer-in-Chief is unable or unwilling to act as such<br \/>\n                  for any reason whatsoever the Engineer-in-Chief shall be<br \/>\n                  competent     to   appoint   and      nominate    any   other<br \/>\n                  Superintending Engineer of chief Engineer as the case<br \/>\n                  may be as arbitrator in his place and the Arbitrator so<br \/>\n                  appointed shall be entitled to proceed with the<br \/>\n                  reference.&#8221;\n<\/p>\n<p>            A perusal of the record shows that the respondents have not<\/p>\n<p>refused to appoint an Arbitrator in terms of sub-Clause 2 as reproduced<\/p>\n<p>above. It was only on account of non-deposit of security amount in terms of<\/p>\n<p>Sub-Clause 7 of Clause 25-A, the Arbitrator could not be appointed by the<\/p>\n<p>respondents. Therefore, I do not find any reason to appoint an Arbitrator<\/p>\n<p>other than in terms of the agreement entered between the parties.<\/p>\n<p>            In view of the above, the present petition is allowed. The<\/p>\n<p>Engineer-in-Chief is directed to appoint an Arbitrator in terms of the<\/p>\n<p>agreement between the parties on deposit of the security amount within the<\/p>\n<p>period of two months.\n<\/p>\n<p>            Consequently, the petition stands disposed of accordingly.<\/p>\n<p>                                      (Hemant Gupta)<br \/>\n                                           Judge<\/p>\n<p>30.1.2009<br \/>\n ds\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Punjab-Haryana High Court M\/S Krishna Construction Co vs Engineer-In-Chief on 30 January, 2009 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Arbitration Case No. 62 of 2007 Decided on : 30.1.2009 M\/s Krishna Construction Co. &#8230;.Petitioner VERSUS Engineer-in-Chief, Haryana and others &#8230;.Respondent CORAM:-HON&#8217;BLE MR. JUSTICE HEMANT GUPTA. 1. Whether Reporters of local papers [&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":[8,28],"tags":[],"class_list":["post-79325","post","type-post","status-publish","format-standard","hentry","category-high-court","category-punjab-haryana-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 Krishna Construction Co vs Engineer-In-Chief on 30 January, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-krishna-construction-co-vs-engineer-in-chief-on-30-january-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Krishna Construction Co vs Engineer-In-Chief on 30 January, 2009 - Free Judgements of Supreme Court &amp; 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