MOKHA LIGHT HOUSE Vs. CENTRAL POLLUTION CONTROL BOARD

JUDGEMENT

(1.) This is a petition under Section 16(3) read with Section 41 of the Indian Arbitration Act, 1940 (for short, "the Act"), praying that the award remitted under Section 16(1) by this Court vide order dated 20.12.1994, has become void on failure of the Arbitration Tribunal to submit the decision within the reasonable time.

(2.) Facts in brief are: that petitioner is a partnership firm; respondents 1 and 2 awarded the work of construction of Central Boards' Building Complex at Shahdara Delhi Sub Head Electrical Installation and entered into a contract agreement No. EE/BP/87-88/2 dated 31.8.1987. The tendered amount was Rs. 22,28,075 /- and the estimated cost put to tender was Rs. 20,84,921/-. The subject works contract was governed by the General Conditions of the Contract providing for settlement of all disputes and claims by way of arbitration under Clause 38 thereof. The stipulated date of start of work was 10.3.1987 and the date of completion was 9.9.1988. It is alleged that respondent violated the terms of the contract by not making payment timely and correct despite repeated requests. Petitioner invoked arbitration clause and filed a petition under Section 20 of the Arbitration Act. The disputes were referred to arbitration. Respondents appointed three Arbitrators on 17.5.1989 for adjudication of disputes between the parties. The Arbitrators (respondent Nos. 3- 5) published the award on 17.8.1990.

(3.) Respondent No. 2 challenged the award (by Suit No. 2959/90 and Suit No. 2964/90), vide order dated 20.12.1994. The objections of respondent No. 2 were partly allowed by this Court, so far as it related to counter claim No. 1 of the respondent No. 2, with regard to termination of the contract and risk and cost amount and ordered the remittance of the matter back to the three Arbitrators for fresh adjudication. During the pendency of the objections of the respondent Nos. 1 and 2 to the award dated 17.8.1990 in Suit No. 2964/90, the respondents had deposited Rs. 1,61,669/-, being the amount of final bill of the petitioner, which is lying in the form of FDR in the name of Registrar of this Court, in terms of order dated 27.4.1994 and 27.3.1995.