UNION OF INDIA Vs. RAGHAVENDRA

JUDGEMENT

(1.) This appeal is filed by the Union of India challenging the judgment dated 21.12.2009 in A.C.No.17/1998 on the file of the VI Additional City Civil Judge, Bengaluru City ['Trial Court' for short].

(2.) The appellant issued a tender on 22.12.1986 for providing external services to married accommodation for 48 Airmen at Air Force Station at Jalahalli. The tender of the respondent No.1 was received on 23.01.1987 and the same was accepted on 12.02.1987. As per the terms and conditions of the agreement, the contractor-respondent No.1 was required to commence work on 05.03.1987 and complete the same on or before 04.09.1987. Since the contractor did not complete the work, time was extended upto 30.11.1988 at his request. However, the said work having not been completed, the appellant cancelled the contract on 15.05.1989 entrusting the balance work to the other agency on 17.03.1990. It is the contention of the appellant that the parties to the contract mutually agreed for amending the said agreement for incorporating certain modifications in the Arbitration Clause at para 6(b) on page No.27 of the Contract Agreement on 20.12.1993.

(3.) It transpires that the Chief Engineer (AF), Bengaluru appointed respondent No.2 as Arbitrator on 02.03.1996. Claims and counter claims were filed. Arbitrator entered appearance on 13.03.1996. The contractor remained absent despite providing sufficient opportunity. Hence, the Arbitrator rejected the claims of the contractor and partially allowed the claim No.1 of the appellant by its award dated 23.04.1998.