VED PRAKASH GUPTA Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal under Sec. 39 of the Arbitration and Conciliation Act, 1940 (in short "the Act of 1940") has been filed for setting aside the order and decree dtd. 2/3/2019 and 10/5/2019 respectively passed by District Judge, Rajnandgaon (CG) in MJC (Civil) No.137/2018 (Annexure A/1) to the extent of denial of pendente lite interest @ 18% p.a. from 1/9/1991 to 20/8/1997 and 18% p.a. interest for the post award period till the actual payment and for direction to the District Judge to pass a decree in accordance with the award.

(2.) Briefly stated, case of the appellant is that the appellant, a partnership firm registered under the Partnership Act, is engaged in contract works of all types and nature with the government or semi government departments, public sector undertakings or private companies etc. The appellant firm was awarded the contract for "construction of traction sub-station building with approach road at Rajnandgaon" for a total contract value of Rs.5.6 lacs and the parties entered into a contract on 10/3/1989, according to which the work was to be completed within six months from the date of award. However, due to major delays on the part of the respondent railways in providing the availability of work front and construction materials and also requesting the petitioner to undertake the additional work of laying pipes in control office, which did not form part of the initial contract, the work was delayed beyond the initial six months and the respondent railways arbitrarily terminated the contract on 7/9/1991 at the verge of completion of the work.

(3.) Aggrieved by such termination, the appellant made a request for appointment of arbitrator vide letter dtd. 23/9/1991 which was rejected by the respondent railways and thereafter, on application being filed by the appellant under Sec. 20 of the Act of 1940, in compliance of the order dtd. 25/1/2019 passed by the District Judge, Rajnandgaon, Shri B. Pandey was appointed as the sole arbitrator.