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2014 DIGILAW 1003 (RAJ)

Maheshwari Enterprises v. Union of India

2014-04-24

GOVIND MATHUR

body2014
JUDGMENT 1. - By the work order dated 23.9.1996 a work of constructing School Building and Staff Quarters for Kendriya Vidyalaya at Jalipa, District Barmer was awarded to the applicant contractor firm. The work was completed within the period prescribed and a final bill was issued. The representative of the applicant firm signed the final bill "under protest" as some of the outstanding claims were not taken into consideration and were not included in the final bill. The details with regard to outstanding claims were also communicated by the applicant to the Garrison Engineer, Jalipa Cantonment under a letter dated 14.7.1999 (Annex.R/1). 2. As per the applicant, the Garrison Engineer by his letter dated 6.1.2000 (Annex.3) requested to submit complete final bill relating to the work concern in two portions i.e. undisputed portion and disputed portion, accordingly the same were submitted by the applicant. 3. The final bill so submitted was not forwarded for its approval to the competent authority, thus, the applicant by his letter dated 6.3.2000 pursued his case for necessary action in this regard. The relevant contents of the letter dated 6.3.2000 reads as under:- "After then a period of 11/2 months has passed away, but still final bill has lying with you and not send to CWE(A) office Jodhpur, for their checking. The pase of checking the final bill is very slow and by this pase it is not possible to clear the final bill from CDASE PUNE by the end of March, 2000. Therefore please expedite the progress of final bill and send to CWE(A) office, Jodhpur at the earliest & oblige." 4. The Garrison Engineer responded to the letter dated 6.3.2000 vide his communication dated 27.3.2000, that reads as under:- "1. Reference your letter No.ME/JLP/10/164 dated 06 Mar 2000. 2. Your contention is not agreed to. You have submitted the details of Final bill part 'B' to AGE B/R on 07.2.2000 and same has been forwarded to CWE for technical check." 5. Suffice to mention here that the letter dated 27.3.2000 mentions about forwarding of part "B" of the final bill and that as per the applicant is the disputed claim. The applicant pursued his case for payment of the amount referred in part "A" and part "B" of the final bill under a letter dated 7/9.10.2009. Suffice to mention here that the letter dated 27.3.2000 mentions about forwarding of part "B" of the final bill and that as per the applicant is the disputed claim. The applicant pursued his case for payment of the amount referred in part "A" and part "B" of the final bill under a letter dated 7/9.10.2009. The letter dated 7/9.10.2009 is also having a stipulation that it may be treated as a notice of arbitration as required under Condition 70 of the agreement i.e. IAFW-2249. An independent request was made to the Engineer in Chief, Army Headquarters, Kashmir House for appointment of an arbitrator as per Condition No.70 of IAFW-2249 by the applicant under a letter dated 30.10.2009/02.10.2009 (Annex.8). The letter aforesaid was responded by the Chief Engineer vide communication dated 2.2.2009 with the assertion that as per Condition 65 of IAFW-2249 General Condition of Contracts forming part of the contract, no claims shall be made by the contractor after submission of the final bill and these shall be deemed to have been waived and extinguished. The claim made by the contractor was denied accordingly. On denial of the claim, the applicant reiterated its prayer to refer the dispute for arbitration, and on being failed in this regard, preferred this application as per Section 11 of the Arbitration and Conciliation Act, 1996. 6. The application has been contested by the respondents on the ground that as per Condition 65 of the agreement, no claim could have been made by the applicant after submitting final bill. The claims made subsequent thereto stands waived and extinguished. It is also urged that as a matter of fact the applicant has drawn the final bill and a certificate in this regard too has been given, therefore, no dispute as a matter of fact exists. The certificate given by the applicant is placed on record as Annex.R/6, contents of that are as under:- "It is certified that I have prepared this FB for claiming entire payment due to me from this contract agreement. This FB includes all claim raised by me from time to time irrespective of the fact wherever they are admitted/accepted by the department or not. This FB includes all claim raised by me from time to time irrespective of the fact wherever they are admitted/accepted by the department or not. I now categorically certify that I have no more claim in respect of this contract beyond those already included in this FB by me and this amount so claimed by me shall be in full and final satisfaction of all my claims under this contract agreement. I shall however reserve my right to raise claim to the extent disallowed to me from this FB." (Emphasis supplied by me) 7. Heard learned counsels for the parties. 8. The stand of learned counsel for the respondents while meeting with the claim made by the applicant for appointment of arbitrator is that:- (1) In view of Clause 65 of the General Conditions of Contracts for Lump Sum Contracts (I.A.F.W.-2159), the applicant could not have made any claim after submission of the final bill as that is deemed to have been waived and extinguished; and; (2) No dispute exists between the parties in view of the fact that the entire bill amount has already been drawn and a certificate too has been given by the applicant in this regard. In view of this, no issue exists that deserves adjudication by arbitral proceedings. 9. So far as the first objection is concerned, suffice to mention here that admittedly the applicant signed the final bill "under protest" and then as advised under the communication dated 6.1.2000 (Annex.3) submitted final bill in two portions i.e. undisputed portion "A" and disputed portion "B". The disputed portion of bill was forwarded to the competent authority for its technical check as is apparent from perusal of the document (Annex.6) dated 27.3.2000. Condition 65 pertains to complete final bill and in the instant matter, complete final bill is having two portions, therefore, merely by acting upon portion "A", it cannot be said that entire bill has been submitted. The portion "B" is yet in dispute, therefore, no protection as per Condition 65 can be availed by the respondents. 10. So far as the second submission of the respondents is concerned, suffice to mention that in the certificate (Annex.R/6) the applicant in quite unambiguous terms mentioned that "I shall, however, reserve my right to raise claim to the extent disallowed to me from this FB". 10. So far as the second submission of the respondents is concerned, suffice to mention that in the certificate (Annex.R/6) the applicant in quite unambiguous terms mentioned that "I shall, however, reserve my right to raise claim to the extent disallowed to me from this FB". This liberty clearly indicate that the applicant was pressing for its claim made in portion "B" of the final bill. The certificate is not relating to both the portions of the final bill but only for the undisputed claims. In view of it, I am satisfied that a dispute exists between the parties that deserves to be adjudicated through arbitral proceedings as per Condition 70 of I.A.F.W.-2159. 11. Accordingly, this application is allowed. Justice H.R. Panwar, a retired Judge of Rajasthan High Court, resident of 113-B, Kanishka Resort, Near DPS Pal Bye-Pass Road, Jodhpur (Raj.) is appointed as arbitrator to adjudicate the dispute existing between the parties as referred in the communication dated 7/9.10.2009 (Annex.7) and also the dispute ancillary thereto. The sole Arbitrator shall be entitled for renumeration and other perquisites in accordance with the Alternative Dispute Resolution, 2009 prescribed by the Rajasthan High Court.The Registry is directed to send a copy of this order to Hon'ble Mr. Justice H.R. Panwar at his residence at the earliest.Application allowed. *******