UNION OF INDIA Vs. SATISH BUILDERS

JUDGEMENT

(1.) This petition under Section 34 of the Arbitration & Conciliation Act, 1996 [hereinafter, "the Act"], has been filed by the Central Public Works Department, Union of India [hereinafter, "CPWD"] against an award dated 22.02.2011 rendered by a sole arbitrator.

(2.) The arbitral proceedings arose out of an agreement between the parties dated 24.05.2003, pursuant to a tender floated by CPWD in February, 2003. The contract was for civil and electrification work for 62 family quarters for CRPF Academy at Kadirpur, District Gurgaon. It was awarded to the respondent by a letter dated 24.05.2003 and was to be completed within fifteen months from the starting date of 03.06.2003, i.e. by 02.09.2004. The negotiated amount payable to the respondent under the tender was Rs. 2,04,14,910/-. The contract was not completed within the stipulated time, for which each of the parties placed responsibility upon the other. This led to the rescission of the contract by CPWD on 24.09.2005 and to the invocation of arbitration by the respondent under clause 25 of the agreement. Mr. Chandra Pal, a former Additional Director General of CPWD was appointed as the arbitrator.

(3.) In the statement of claims filed before the arbitrator, the respondent detailed the allegations against the CPWD and raised eighteen claims against it. The heads of the claims are summarised below: