ALKARMA Vs. MOHAN LAL HARBANS LAL BHAYANA

JUDGEMENT

(1.) M/s. Mohan Lal Harbans Lal Bhayana & Co. ('MHB') has filed objections under Sections 30 and 33 of the Arbitration Act, 1940 ('1940 Act') in IA No. 8382 of 2000 to an Award dated 31 st August 1999, passed by the sole Arbitrator in the disputes between the Plaintiff, M/s Alkarma ('ALK') and MHB arising out of an agreement dated 24 th November 1988 and supplementary agreements dated 13 th May 1990 and 22 nd June 1993 between the parties concerning the execution of Aluminium works in the Twin Tower Project of the Standing Conference on Public Enterprises ('SCOPE') at Laxmi Nagar, Delhi.

(2.) SCOPE invited tenders for construction of a twin-tower office complex at Plot No. 2, Laxmi Nagar District Centre, Delhi. SCOPE appointed Bhardwaj Bhardwaj & Associates (P) Ltd. (hereinafter 'Architects') to prepare the drawings, specifications and schedule of quantities. Larsen & Toubro ('L&T') were awarded the contract for complete execution of the Twin Tower Office Complex. MHB was engaged as a contractor authorized to carry out and execute some of the ancillary works under the contract. Sub Head 8 (Sl. No. 8.1 to 8.8) pertaining to the Aluminium work was subcontracted by MHB to ALK for the final price of Rs. 5,13,22,953.80. The bill of quantities ('BOQ'), specifications, drawings etc. which were furnished with the tender and duly signed by the parties formed part of the contract dated 24 th November 1988 entered into between MHB and ALK. It was agreed that the actual payment would be based on the unit rates and the quantities of work executed.

(3.) Under Sub Head A, Clause 12 (b) of the agreement the Architects were to, from time to time, issue supplementary drawings/written instructions, details, directions and explanations, collectively referred to as 'Architects' Instructions'. ALK was to forthwith comply with and duly execute the works as per Architects' Instructions, provided always that in case of verbal instructions given to ALK they were to be confirmed in writing.