BRIEF:

The case pertains to a dispute arising out of differences in the measurement and payments for a road work in hilly terrain for a hydroelectric project. The contractor having dissatisfied with the decision of the Engineer-in-Charge, invoked contract provisions related to dispute resolution and referred the matter for adjudication through arbitration.

The value of the dispute referred to arbitration was around INR 2 Crore and our team member in his individual capacity acted as arbitrator.

APPROACH:

At the very outset, both parties were asked to give a presentation on the claim and rebuttal, followed by discussions on contract provisions and notices served by the contractor/claimant. Measurements recorded and method adopted for the measurements was discussed in detail. Levels taken before the start of work and after the completion of the works were got plotted and quantities based on these surveys got determined. The quantities thus worked out were compared with the quantities recorded in the measurement book. It was noticed that there was huge difference in the quantities recorded in the measurement books. It was also noticed that the contractor /claimant had accepted the measurements “Under reservations”. Based on the presentations and the calculations by the parties arbitration award was declared announcing a payment of INR 45 Lakh with interest in full and final settlement of the claim.

The award was accepted by both the parties and implemented.