(1.) The petitioner was awarded the work of "Development of land for CGHS in Zone, E-S, Patpar Ganj, SH :Construction of SW Drains vide agreement N0.7/EE/DD IX/DDA/85-86. However, certain disputes arose between the parties and at the request of the petitioner, the respondent No.2 Sh. S.K.Ahuja, Chief Engineer, Telecom was appointed as sole arbitrator by the Engineer Member, DDA vide his letter dated 8/10/1992. He entered upon reference and adjudicated the claims and counter-claims submitted before him. It resulted in making and publishing award dated 11/8/1995. On an application filed by the petitioner under Sections 14 and 17 of the Arbitration Act, 1940, the arbitrator was directed to file the award and proceedings in this court which he did. Notice of filing of the award was sent to both the parties. By means of IA No.12034/96 the respondent DDA has filed objections to this award.
(2.) Although number of objections are taken at the time of arguments learned counsel for the respondent confined her challenge to the award in respect of claims 5 and 6 only.
(3.) Claim No.5 is for Rs.2 lacs on account of loss of profit for non-execution of the part of the work. It was the case of the petitioner that work amounting to Rs.1,35,98,640.00 was awarded with stipulated date of commencement as 1/6/1985 and stipulated date of completion as 31/5/1986. However, the petitioner was provided with part of site and accordingly the work to the extent of Rs.1,14,22,387.00 could be completed by him. Since the remaining site could not be handed over to the petitioner, the competent authority approved the case of closure of the contract. In this manner the petitioner could not execute the balance work for Rs.21,76,253.00. It was the case of the petitioner that had he been allowed to be execute the balance work, he would have earned profit of Rs.2.00 lacs thereon which was calculated at the rate of 10 per cent of the work. The arbitrator found the claim to be justified and awarded Rs.2.00 lacs in favour of the petitioner.