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Showing contexts for: infructuous overheads in The Executive Engineer vs M/S Sudha Parimala on 17 August, 2012Matching Fragments
Under caption "amount of compensation awarded to claimant-contractor on account of breach of contract by appellant-defendant", Arbitrator awarded a sum of Rs.3,83,654/- towards infructuous overhead expenses and a similar amount of Rs.3,83,654/- towards loss of profit. Thereafter, appellant was before trial court in A.S.No.8/2009. The learned Judge in terms of judgment dated 01.02.2011, dismissed the suit holding that appellant has failed to make out grounds to set aside supplementary award dated 21.08.2008. Therefore, appellant is before this court.
The claimants shall act responsibly and hand over all the materials rightfully owned by the Employer within 15 days of the date of this award.
III. The Arbitrator has reopened entire dispute and made supplementary award by setting aside the findings recorded in first award dated 09.03.2000.
12IV. The Arbitrator has erroneously held that final bill prepared by M/s.Globe Consultants, is contrary to terms of contract. The Arbitrator has determined payments due to claimant-Contractor (other than compensation), without there being any evidence. The Arbitrator has determined compensation payable to I-respondent-contractor for Iggalur work under two captions viz "loss due to infructuous overhead expenses" and "loss of profit". This is contrary to the findings recorded in original award dated 09.03.2000 in paragraphs 23.5 & 23.6, reading as hereunder:-
18. The Arbitrator has awarded compensation of Rs.3,83,654/- towards "loss of infructuous overhead expenses and similar amount towards "loss of profit".
19. The I-respondent-Contractor was entitled to compensation in respect of compensation event in terms of order made by the learned trial Judge in A.S.No.43/2000 dated 06.09.2007. In the original award, I-respondent- Contractor had raised following claims:-
"a. Award rates as requested by me and extend the time for executing the work by one year from the date of settlement, or in the alternative, b. Close the contract in "as is where is stage"
and pay me i. all my pending bills ii. release my deposit amount and other amounts held in deposit and bank guarantees additional performance guarantee etc."
The Contractor had not raised any claim that he had accumulated men and material to execute work near Iggalur Village, which is held to be a compensation event. The Arbitrator has awarded a sum of Rs.3,83,654/- towards "loss of infructuous overhead expenses", in the absence of any claim or evidence that Contractor had incurred infructuous overhead expenses. The award of a sum of Rs.3,83,654/- towards "loss of infructuous overhead expenses" is a transgression of remand order made in A.S.No.43/2000 dated 06.09.2007. Therefore, this part of award cannot be sustained.