Law: Arbitration Act, 1940

Section: 33

Keywords: Dispute, Arbitration Clause, Minutes, Costs, Notice, Arbitrator, Period, Consideration, Deductions, Arbitration, Payment, Objections, Parties, Petitioner, Binding, Reduction, Delay, Contentions, Refund, Contract, Language Result: Appeal accepted JUDGMENT The background of facts giving rise to this application under section 33 of the Arbitration Act is as under: The petitioner and the respondent No. 1 (hereinafter referred to as the contractor) entered into an agreement on 4-10-73 whereby the Contractor was entrusted with the work of carrying out construction at F-3, Hub Chowki Road, Karachi. The value of the contract was Rs. 11,08,882,50, on item rate basis. Clause 25(A) of the agreement, which is relevant for the consideration of the dispute between the parties, is reproduced here under:. "25(A). Fluctuations.- During the currency of the Contract any fluctua tion in prices shall not alter the rates quoted by the Contractor." The Agreement also contained an Arbitration Clause, as per clause 26 thereof, according to which in case of any dispute or difference between the parties, 'as to the construction of the contract or as to any other matter arising there under, the same was to be referred for decision to an Arbitrator to be appointed on the request of either patty by the President or Vice -President, for the tine being, of the Institute of Architects of Pakistan and the award of such Arbitrator was to be final and binding on the parties. The Contractor approached the petitioner on 1-2-1974 for increase of the rates on account of price like resulting from abnormal market condi tions. The contractor pressed for the demand and threatened that the progress of the work would not be maintained unless the question was settled. The matter was discussed by the parties in a meeting held on 29-10-74 and it was decided as under: "There has been some delay in the work because of late decision by N, M. L. The work was delayed beyond the stipulated scheduled time due to this account. It was agreed that N. M. L. Would consider price escalation for the percentage of work which was delayed on this beyond the stipulated period of completion and according to the…

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