DELHI DEVELOPMENT AUTHORITY Vs. CONSTRUCTION AND DESIGN SERVICES

JUDGEMENT

(1.) This objection petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'Act') has been filed by the Petitioner DDA challenging the validity and legality of the Award dated 12/8/2004 published by the sole arbitrator Mr.P.K. Bahri, J. in favour of the Respondent (claimant).

(2.) Petitioner had entered into a contract with M/s. Construction and Design Services under U.P. Water Supply Sewerage Act, 1975 for construction of a Sewage Pumping Station at Kundli Gharoli, Delhi vide Award letter No. F9(1)/ED-9/95-96/DDA/A/C's/1022 dated 28/9/1995. The work was to be completed within 15 months from the date of the start of the work i.e. 8/10/1995. However, Respondent could not complete the work granted to it under the said contract even after lapse of 42 months.

(3.) Respondent vide its letter No.779/Work-214 dated 30.09.1997 informed DDA that it was not possible for it to execute the work due to some internal problems and financial constraints within the Respondent department. The work therefore was completely stopped by the Respondent claimant on 6.4.1999. Various notices were served upon the Respondent to complete the work, but to no effect. Petitioner had to get the balance work executed through another contractor at the risk and cost of the Respondent after rescinding the contract vide letter No.F9(1) ED-9/95/DDA/A/C/6008 dated 17.9.1999.