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1989 (1) TMI 314 - SC - Companies LawWhether the compensation determined under clause 2 is excluded from the scope of arbitration under clause 25? Whether the contractor is responsible for the default? Held that:- Appeal allowed. Loss or damage which it may be open to the Government to lay against the contractor, not in terms of clause 2 but under the general law or under the Contract Act. As pointed out at the very outset so far as this case is concerned the claim of the Government has obviously proceeded in terms of clause 2 and that is the way in which both the single Judge as well as the Division Bench have also approached the question. Reading clauses 2 and 25 together we think that the conclusion is irresistible that the amount of compensation chargeable under clause 2 is a matter which has to be adjudicated in accordance with that clause and which cannot be referred to arbitration under clause 25.
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