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arbitration

(Querist) 25 October 2009 This query is : Resolved 
if there is 9 year delay by deptt in providing the sketches/ designs, how can contractor be compnsated, and can contractor ask for esclation and damages on same claim, what about intrest component.
Jithendra.H.J (Expert) 25 October 2009
what he was doing all these years?

have to create a new cause of action to file the suit.

and it appears that you have not disclosed the full facts as you have given the title to your query as 'arbitration'
adv. rajeev ( rajoo ) (Expert) 26 October 2009
too much delay.
PJANARDHANA REDDY (Expert) 26 October 2009
contact an ADVOCATE OF same field,make a live to the case,time may run to beyond limitation, HURRY
H. S. Thukral (Expert) 26 October 2009
Need Details.

Murali Krishna (Expert) 26 October 2009
If contractor has an arbitration clause in the agreement, he can seek arbitration. Once an arbitrator is appointed, he has to make his claims for escalation of the costs, damages, idling of labour and also for interest and loss of profit.

However, if all or some of these items are excepted matters, arbitration for these items are denied.

Limitation for filing arbitration application is 3 years. Hence, if your contract is not yet finalised or finalised within last three years, you can seek appointment of arbitrator from court.

Secondly, arbitration is not the end of your rights. If arbitration is denied, you can proceed to civil court for your rights as to the claims which are rejected as excepted matters/not arbitrable ones.
Raj Kumar Makkad (Expert) 26 October 2009
Equity of law is the base of judicial system and it is also the lifeline fo governments. if an agreement not executed within a long period of nine years only due to a department of a government, how can a contractor be expected to execute his part of contract at such belated stage. better you first make representation to that particular department to raise the cost of contract at par with the current rates and if denied, go to directly high court and file writ there.
H. S. Thukral (Expert) 29 October 2009
In my opinion Mr. Murali Krishna has advised correctly. There shall be an arbitration clasue in the contract as it is must in all Government Contracts. You can ask for appointment of an Arbitrator as per terms of the contract. If the department fails to appoint the Arbitrator you can approach the HC under section 11 of ACA. The damages for delay etc depend upon terms of the contract and ordinary law of contract applies for any breach thereon. But first of all you shall have to lodge a claim on the department. Existence of a dispute is must before the arbitration takes place. I differ with my Ld. friend Murali Krishhna that you can raise the claim before the arbitrator without notifying the same. Excepted matters are the matters, where in terms of contract, arbitration can not take place and decision of an authority of the department is final. As advised By Murali Krishna, the civil court jurisdiction shall not be barred to look in to claims covered by excepted matters.


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