BHAGAT CONSTRUCTION CO. Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This case has been placed before us pursuant to a reference made by one of us (Anil Dev Singh, J.) by order dated 18.12.1996.Before answering the reference it would be necessary to mention certain background facts of the present case which led to the aforesaid reference.

(2.) A contract was awarded by the respondent in favour of the petitioner which was in the nature of work contract for construction of certain staff quarters at Kalkaji Extension, Pocket A-9, including internal development of land. An agreement was also executed between the parties, Clause 25 whereof provides that the disputes between the parties, if any, arising out of or in relation to the aforesaid contract are required to be resolved through the process of arbitration by appointing an Arbitrator. During the execution of the aforesaid contract certain disputes arose between the parties whereupon the petitioner invoked the arbitration clause, in terms of which the Engineer Member of the respondent vide memo dated 27.5.1988 appointed an Arbitrator and referred the disputes to him to be decided according to law. The Arbitrator entered upon the reference and made the award dated 24.12.1988. An application was filed in this Court by the petitioner under Sec. 14 of the Arbitration Act praying for a direction to the Arbitrator to file the original award alongwith the arbitration proceedings.

(3.) The said petition was registered as Suit No. 289-A/1989. On the aforesaid petition notice was issued by this Court, pursuant to which the award was filed in this Court. On filing of the aforesaid award in this Court by order dated 5.4.1989 notice was issued to the parties as against which the respondent/DDA filed an application/ objections under Sections 30 and 33 of the Arbitration Act, which was registered as I.A. No. 3750/1989. The petitioner sought for making the award a rule of the Court. In the aforesaid proceedings the following two issues were framed: