DELHI DEVELOPMENT AUTHORITY Vs. ANANT RAJ AGENCIES

JUDGEMENT

(1.) Adherence to the basic principles of natural justice in the arbitration proceeding is the pivotal question which arises for consideration in this case. This appeal is directed against the judgment of the learned Single Judge dated 7.12.1987 by which he made the award given by the arbitrator rule of the court. The arbitrator assessed the loss on account of idle staff, salaries, wages to labour, artisans and establishment costs, hire charges for shuttering materials and rehandling of materials and dismantling and reconstruction of structures pursuant to revision of labour charges etc to Rs.6.5 lakhs. The arbitrator directed that the amount of Rs.6.5 lakhs be paid within one month from the date of making and publishing the award, failing which interest @ 12% per annum will be payable till actual payment or till the award is made rule of the court, whichever is earlier.

(2.) The appellant DDA is aggrieved by the impugned order of the learned Single Judge. The learned counsel appearing for the appellant submitted that the respondent is not entitled to any amount from the alleged claim because the same has not been proved in accordance with law. The appellant claimed that the claimant (respondent herein) refused to submit the records and the details regarding any loss which has been incurred by them.

(3.) The appellant submitted that despite the arbitrator's direction the claimant (respondent herein) did not produce the relevant records and vouchers etc. for verification and scrutiny. Only fractional or illustrative records were furnished by the claimant respondent and that too after the conclusion of the arbitration proceedings. The appellant DDA had no opportunity of verifying those records which ultimately formed the basis of the award.