M/S. AMBICA CONSTRUCTION versus UNION OF INDIA

M/S. AMBICA CONSTRUCTION versus UNION OF INDIA

Clause 43(2) of General Conditions of Contract does not operate as an absolute bar to genuine claims by a contractor even after the submission of a No Claim Certificate, especially if there is evidence of coercion or necessity; the contractor remains entitled to seek reference of disputes to arbitration.

Parties
Appellant: M/S. Ambica Construction; Respondent: Union of India
Jurisdiction
India
Judgment Date
20 November 2006
Procedural Posture
Civil Appeal / Appeal From Division Bench Judgment and Review Petition of Calcutta High Court, Supreme Court Final Decision
Outcome
Appeals allowed; impugned judgments of Division Bench and Review Petition set aside.
Legal Topics
Works Contract, No Claim Certificate, Arbitration Clause, Coercion and Duress in Contract, Security Deposit Recovery
Contract Law Arbitration Law Works Contract No Claim Certificate Arbitration Clause Coercion and Duress in Contract Security Deposit Recovery

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Parties

M/S. Ambica Construction

Appellant

Union of India

Respondent

Procedural Posture

Civil Appeal / Appeal From Division Bench Judgment and Review Petition of Calcutta High Court, Supreme Court Final Decision

Legal Issues

  1. 1 Whether signing a No Claim Certificate by a contractor bars genuine claims under a works contract
  2. 2 Whether No Claim Certificate was given under coercion or duress
  3. 3 Effect of Clause 43(2) of General Conditions of Contract on arbitration rights

Ratio Decidendi

Clause 43(2) of General Conditions of Contract does not operate as an absolute bar to genuine claims by a contractor even after the submission of a No Claim Certificate, especially if there is evidence of coercion or necessity; the contractor remains entitled to seek reference of disputes to arbitration.

Court Disposition

Appeals allowed; impugned judgments of Division Bench and Review Petition set aside.

Orders

  • The appellant is entitled to claim reference under the contract.
  • No absolute bar to arbitration or further claims due to No Claim Certificate submission.