Law:

Section:

Contract Act (IX of 1872)--S. 62---Arbitration Act (X of 1940), S. 20---Constitution of Pakistan (1973), Art. 185(3)--Rescission of contract by Government---Dispute referred to two senior officers of Government---Award rendered by such officers was modified by High Court---Validity---Award given by two senior officers of the Government itself as modified by the High Court did not justify interference--­Leave to appeal was refused in circumstances. ORDER ABDUL SHAKURUL SALAM, J.---Petitioner seeks -leave to appeal against an order of a learned Judge of the Lahore High Court in FA.O. No. 22 of 1990 dated 27-6-1990. 1. The petitioner accepted a tender of the respondent 'for the construction of road from Kahna Nau to Kot Arain via Jia Bagga Mile 0/0 to Mile 3/0 group 1 on 13-12-1973, at the estimated cost of the work being Rs.7.5 lacs. The respondent partly completed the work but the payments were withheld and finally vide letter dated 7-12-1976 it was informed that the contract had been rescinded. The respondent filed an application under section 20 of the Arbitration Act for the dispute being referred to arbitration in terms of clause 25 (A) of the contract. It was pleaded that the contract had illegally been rescinded. The learned Civil Judge vide order dated 18-1-1987 appointed two senior officers of the Public Works Department namely Mr. Ghulam Ahmad Sheikh, Director, Designs Standardization Cell and Mr. Ijaz Ahmad Chaudhry, Superintending Engineer, as arbitrators and referred the dispute to them. The respondent filed their claim before the arbitrators giving details of each item and the sum of money which they claimed due to them, the total claimed being Rs.6,63,988. The principal question for determination was whether the contract was rightly rescinded. It was the case of the appellant that the respondent had become `defaulter'. On the other hand, the case of the respondent was that the appellant was guilty of breach of contract;. had failed to fulfil its part of the contract and the rescission of the contract was, therefore, invalid. After recording the evidence, perusing the record and hearing the parties, the learned arbitrators found that the appellant…

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