UNION OF INDIA Vs. R S SHARMA CONTRACTOR

JUDGEMENT

(1.) Present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "Act, 1996") challenging the arbitral Award dated 16th August, 2007 as well as the corrigendum dated 26th August, 2007 passed by the sole Arbitrator Mr. V.S. Dixit, Chief Engineer (Retd.) CPWD.

(2.) Briefly stated the facts of this case are that on 21 st December, 1996, respondent-claimant was awarded a construction contract for Pedestrian Subway across Outer Ring Road, near Saraswati Vihar, Delhi. While 31st December, 1996, was the stipulated date of commencement of work, 30th October, 1997 was the stipulated date of completion of work. However, the contract was completed by 02nd February, 1998, within the extension granted by petitioner-objector without levy of any liquidated damages. Petitioner-Objector by way of the present petition has challenged the Award insofar as it directs petitioner-objector to pay Claims No. 1, 2 and 6 to 8.

(3.) Mr. V.K. Tandon, learned counsel for petitioner-objector submitted that the learned Arbitrator could not have awarded any amount against Claim No.1 as respondent-claimant had agreed vide letter dated 04th March, 2002 to accept the rates arrived at by the petitioner-objector's competent authority. Mr. Tandon further submitted that the Award of the said Claim was contrary to a judgment of Supreme Court in Nathani Steels Ltd. vs. Associated Constructions reported in 1995 Suppl. (3) SC 324. It is pertinent to mention that Claim No.1 was on account of alleged lesser rates paid than quoted/agreed rates for certain items. The relevant portion of the letter dated 04th March, 2002 written by the respondent-claimant reads as under: