M/S M.S. Brothers Engineers And Contractors v. State Of Punjab And Others








 

 






 



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24. Dispute Redressal System 24.1 If any dispute or difference of any kind whatsoever shall arise in connection with or arising out of this contract or the execution of works or maintenance of the work thereunder, whether before its commencement or during the progress of works or after the termination, abandonment or breach of the contract, it shall, in the first instance, be referred for settlement to the competent authority within 45 days of arising of the dispute or difference, described alongwith their powers in the contract data, above the bank of the engineer. The competent authority shall within a period of 45 days after being requested in writing by the contractor to do so, convey his decision to the contract.

Such decision in respect of ever matter so referred shall, subject to review as hereinafter provided be final and binding upon the contractor. In case the works is already in progress, the contractor shall proceed with the execution of the works, including maintenance thereof, pending receipt of the decision of the competent authority as aforesaid, with all due diligence. 24.2 Either party will have the right of appeal, against the decision of the competent authority to the Standing Empowered Committee within 90 days of decision of the competent authority if the amount appealed against exceeds 0.20 (zero point two zero) percent of the initial contract price. 24.

3 The composition of the Empowered Standing Committee will be: I) One official member, chairman of the Standing Empowered Committee, not below the rank of Additional Secretary to the State Government. II) One official member not below the rank of Chief Engineer; and III) One non-official member who will be technical expert of Chief Engineer's or Superintending Engineer's level selected by the Contractor from a panel of three persons given to him by the employer.


, 24.4 The Contractor and the employer will be entitled to present their case in writing duly supported by documents. If so requested, the Standing Empowered Committee may allow one opportunity to the contractor and the employer for oral arguments for a specified period. The Empowered Committee shall give its decision within a period of 90 days from the date of appeal, failing which the contractor can approach the appropriate court for the resolution of the dispute.

24.5 The decision of the Standing Empowered Committee will be binding upon the employer for payment of claims up to five percent of the initial contract price. The contractor can accept and receive payment after signing as "in full and final settlement of claims". If he does not accept the decision, he is not barred from approaching the courts. Similarly, if the employer does not accept the decision of the Standing Empowered Committee above the limit of five percent of the initial contract price, he will be free to approach the courts applicable under the law.;
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