P.M. Paul v. Union of India [1989 Supp (1) SCC 368] is a case which is almost identical on facts. In this matter the work could not be completed during the period of the contract and the contractor was accordingly granted extension of time to complete the same. By an order of this Court, the dispute was referred to an arbitrator on the reference as to who was responsible for the delay in the completion of the work, what were to be the repercussions of the delay and how to apportion the responsibility and the consequences. The arbitrator made an award in favour of the contractor which was duly challenged by the Union of India with the matter finally reaching this Court at the instance of the contractor and this is what the Court had to say : (SCC p. 373, para 13)
“13. It was submitted that if the contract work was not completed within the stipulated time which it appears was not done then the contractor has got a right to ask for extension of time, and he could claim difference in price. This is precisely what he has done and has obtained a portion of the claim in the award. It was submitted on behalf of the Union of India that failure to complete the contract was not the case. Hence, there was no substance in the objections raised. Furthermore, in the objections raised, it must be within the time provided for the application under Section 30 i.e. 30 days during which the objection was not specifically taken, we are of the opinion that there is no substance in this objection sought to be raised in opposition to the award. Once it was found that the arbitrator had jurisdiction to find that there was delay in execution of the contract due to the conduct of the respondent, the respondent was liable for the consequences of the delay, namely, increase in prices. Therefore, the arbitrator had jurisdiction to go into this question. He has gone into that question and has awarded as he did.”{Para 19}
Civil Appeal Nos. 3376-3337 of 2008
Decided On: 07.05.2008
Associated Construction Vs. Pawanhans Helicopters Pvt. Ltd.
Hon'ble Judges/Coram:
Tarun Chatterjee and H.S. Bedi, JJ.
Author: H.S. Bedi, J.
Citation: AIR2008SC 2911, 2008(2)ARBLR473(SC ), 2008 (3) AWC 3048 (SC ), 2008-4-LW926, 2009(1)RC R(C ivil)34,
2008(8)SC ALE451, (2008)16SC C 128,MANU/SC/7630/2008
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