NTPC LTD Vs. DECONAR SERVICES

JUDGEMENT

(1.) The present Civil Appeals, by way of Special Leave arise out of the impugned common judgment dated 09.04.2010 passed by the Division Bench of the High Court of Delhi, whereby the High Court dismissed the appeals filed by the present appellant against the dismissal of their objections to an award passed by the Arbitrator under the Arbitration Act, 1940.

(2.) A conspectus of the facts necessary for the disposal of the present appeal is as follows: the appellant had issued two tenders for the construction of certain quarters in which the respondent had participated. The first project related to the construction of 100 units of A and B type quarters. The second, was with respect to construction of 68 units of B, C and D type quarters. It appears that while the respondent was L­3 with respect to the first project, he was L­2 with respect to the second. After negotiations between both parties, the appellant decided to award both contracts to the respondent on the basis of an offer by the respondent of 16% rebate on the prices for completing the first project, in the event he was awarded both contracts. The two letters of award were issued on 29.06.1988 to the respondent. It appears from the record that there was some delay in the handing over of sites by the appellant, which resulted in a delay in the completion of the construction of quarters in both projects.

(3.) The learned Arbitrator, vide awards dated 07.07.2000, granted relief to the respondent under different heads of the contract. With respect to the first contract pertaining to the construction of 100 units of A and B type quarters, the Arbitrator awarded a sum of Rs. 23,89,424/­ with interest at 18% per annum pendente lite and 21% future interest to the respondent.