BINDRA BUILDERS Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The objections filed by the Plaintiff, M/s. Bindra Builders in IA No. 821 of 2002 under Sections 30 and 33 of the Arbitration Act, 1940 ('Act') to an Award dated 29 th September 2000 of the sole Arbitrator are being disposed of by this judgment.

(2.) The background facts are that the Plaintiff, a partnership firm, was awarded various works in Group Housing Schemes for construction of 1440 MIG/LIG Dwelling Units ('DUs') at Trilokpuri, New Delhi by the Defendant No. 1, Delhi Development Authority ('DDA'). The disputes between the parties were referred to arbitration after the Plaintiff filed Suit No.2659A of 1994 in this Court under Section 20 of the Act. Although the time limit for publication of the Award was four months from 9 th July 1996, the date on which the Arbitrator entered upon the reference, the time was enlarged periodically with the consent of the parties. The plaintiff filed its statement of facts/claims on 11 th July 1996. DDA filed its counter statement of facts/claims and counterclaims on 3 rd September 1996. DDA filed a revised counter statement of facts/claims on 2 nd September 1997. 2

(3.) A preliminary objection was raised before the learned Arbitrator that the Plaintiff's claims were barred by limitation. DDA pointed out that the entire work, even according to the Plaintiff's statement of claim, was completed by 1982 and flats were handed over till 1984. Thereafter no further work was done on the site. Serious shortcomings in the work were pointed out by the Quality Control Wing in their inspection report. According to DDA, both on account of the defects pointed out and the fact that the Plaintiff had already been paid much more than what was due by the DDA, the Plaintiff never bothered to present any claim. It is stated that the Plaintiff never raised any claim for payment in any of the letters written till June 1987. Thereafter, another request was made on 20 th May 1992. The arbitration clause was invoked only in 1994 and the Plaintiff made claims for the first time in May 1996. The DDA's case was that the cause of action arose either in 1982 or at the latest in October 1984. The period of limitation for the claim expired either in 1985 or latest in 1987. The arbitration clause was invoked on 30 th September 1994 when limitation had already expired.