MUNICIPAL CORPORATION OF DELHI Vs. RAMEY

JUDGEMENT

(1.) Pursuant to the application under Section 14 of the Indian Arbitration Act, 1940 for filing of the award dated 5/10/1993 and making the same rule of the Court the respondent was noticed. By way of filing objections (IA 9236/94) under Sections 30 & 33 of the Arbitration Act the respondent has asked for setting aside the award mainly on the following grounds:- (i ) That the parties to the agreement never agreed to refer the issues or the alleged claim of the petitioner to the said Arbitrator and as such there was no jurisdiction vested with the Arbitrator to deal with the claims made by the petitioner. (ii) The Arbitrator being subordinate to the Commissioner of the petitioner had been pressurised and undue influence has been exercised upon him. 2 (iii) The Arbitrator has violated the principles of natural justice by not granting the reasonable opportunity to the respondent to make its Submissions and prove documents in support of its case. (iv) The Arbitrator has also violated the principles of natural justice by not intimating to the respondent or his counsel that the respondent has been proceeded ex parte. (v) Since the petitioner did not comply with the conditions of the contract the contract became incapable of performance and the Arbitrator has also gone beyond the scope of reference and erred in awarding lump sum award instead of itemwise.

(2.) Admittedly the respondent/objector submitted three cheques drawn on Canara Bank against the contract for removal of dead animals from the area excluding in and around Slaughter House for Rs.5 lacs, 5 lacs and 3 lacs each but on presentation one of the cheques for the amount of Rs. 5 lacs was dishonoured. However on 7/09/1992 a show cause notice was issued to the respondent in the following terms:-

(3.) The aforesaid facts and the perusal of the award show that none of the objections raised by the respondent is tenable either on factual or on legal matrix.