INDIRA RAI Vs. IAF EDUCATIONAL AND CULTURAL SOCIETY

JUDGEMENT

(1.) The claimant filed a suit No.288/90 under Section 20 of the Arbitration Act, 1940 for appointment of Arbitrator in terms of Arbitration Clause in the Contract. This Court on 27/09/1990 disposed of suit by giving a direction to the respondent to appoint Arbitrator. The respondent appointed Mr.B.K.Nigam , Air Commador (retired) as the Arbitrator who gave his Award on 20/03/1994. Both the parties have filed objections to the Award of the Arbitrator.

(2.) Mr. Sharma learned counsel for the Claimant has contended that the Arbitrator has not allowed the amount of Rs.1,05,911.30 although the counter claims of the Respondents were disallowed. The basic bone of Contention between the parties on which objections have been filed by the respondent is the value of the contract and the professional fee awarded by the Arbitrator.

(3.) Mr.Sanjiv Ralli, learned counsel for the respondent has contended that in terms of documents C-16 which is a letter written by the Claimant on 28/08/1986, the claimant was not entitled for professional fee on any other amount beyond a limit of Rs.77 lakhs and, therefore, the Arbitrator committed grave irregularity in Awarding the professional fee on actual cost and not on the agreed cost between the parties. The respondent is also aggrieved by rejection of their counter claim by the Arbitrator on the ground that having found that the claimant has misconducted herself as the cost of the interior works was increased from what was initially submitted by the Architect still the losses sustained or the cost escalation on the same has not been awarded in favour of the respondent.