J K ANAND Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) Through this application under Sections 16(c), 30 and 33 of the Arbitration Act, 1940, award dated 8/06/1994 Is sought to be set aside.The question Involved for determination is whether the Arbitrator was competent to reject the claim of the petitioner on the ground that the demand for Arbitrator was not made within 90 days from the date of the final bill as per clause 25 of the Agreement.

(2.) Clause 25 of the agreement provides as under

(3.) The validity of the above clause of the agreement cropped up for consideration in M/s. Hindustan Construction Corporation Vs. Delhi Development Authority 77(1999) DLT 165.In the aforesaid case also, the arbitration was not demanded within 90 days and the claims of the petitioner were dismissed on that short ground alone and not on merits. It was held that clause 25 is hit by an amendment which has been made to Section 28 of the Contract Act (vide Amendment Act I of 1997) whereby clause (b) has been incorporated therein. Section 28 of the Contract Act provides as under :