Delhi High Court recently held that merely the fact that a contractor accepts payment from the employer for the work done does not mean that all disputes between them had ended.
In Union of India v Baga Brothers, disputes and differences between the parties arose on account of a contract work of construction given to the contractor, Baga Brothers, by the appellant government. The contract was completed in 1997 and the final bill finalized in 1998. The disputes were referred to arbitration and the arbitrator held that the disputes were alive/not finally settled and hence arbitrable. The arbitrator passed a final award in December 2004, allowing some of the claims of the contractor, which was unsuccessfully challenged by the government.
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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
