UNION OF INDIA Vs. PEOPLE ENGINEERING

JUDGEMENT

(1.) Both plaintiff-Union of India and the defendant-contractor have filed objections under Sections 16, 30 and 33 of Arbitration Act, 1940 (hereinafter referred to as "Act, 1940") to the arbitral Award dated 7th May, 1992 passed by Sole Arbitrator, Mr. C. Achuthan, Additional Legal Adviser to the Government of India.

(2.) Briefly stated the material facts relevant for this case are that on 20th March, 1971 plaintiff-UOI accepted the defendant-contractors tender for construction and supply of four Ferry Crafts having capacity of 150 people in accordance with the conditions mentioned in Form No. DGS&D-68 (Revised) and 72 as amended upto date. The four Ferry Crafts were to be delivered by 10th March, 1973.

(3.) Clause 19A of the contract provided for payment in a phased manner. While 15% payment was to be made when keel was laid, another 15% payment was to be made when frame of vessel was completed and additional 15% payment was to be made when hull was completed. Fourth payment of another 20% was to be made when the vessel was launched and another 25% payment was to be made when the vessel was completed and accepted by respondent-UOI after final inspection and/or trial. The balance 10% amount was to be paid to the defendant-contractor after expiry of the guarantee period.