LAWS(DLH)-2012-11-3

PT. MUNSHI RAM & ASSOCATES Vs. DDA

Decided On November 01, 2012
Pt. Munshi Ram And Assocates Appellant
V/S
DDA Respondents

JUDGEMENT

(1.) M/s. Pt. Munshi Ram & Associates (P) Ltd. (hereinafter referred to as, 'the Contractor') was awarded the work of construction of dwelling units in Vasant Kunj, New Delhi by Delhi Development Authority (hereinafter referred to as, 'DDA') vide Agreement No. 18/EE/HD-II/84-85. One of the sites where flats were to be constructed was in Sector C, Pocket 9, Vasant Kunj, New Delhi, which was not available and, thus, an alternative site in Sector C, Pocket 2, Vasant Kunj, New Delhi was made available. In terms of the Agreement, the date of commencement of the work was 10.12.1984, while the stipulated date of completion was 09.12.1985. The work was, however, completed only on 15.07.1989.

(2.) Disputes arose inter se the parties and in terms of clause 25 of the General Conditions of Contract, the Engineer Member of DDA appointed Mr. R.J. Bakhru, retired Chief Engineer of CPWD, as the Sole Arbitrator to adjudicate upon the disputes. The learned Arbitrator made and published the Award dated 24.11.1994. It is significant to note that in terms of the Award, the delay was held attributable to DDA and the Contractor was awarded a sum of Rs.37,97,614/- under various heads along with simple interest @ 16% p.a. on the sum of Rs.10,43,292/- w.e.f. 15.01.1990 to date of decree or payment, whichever was earlier. Thus, interest was granted only qua two of the claims being claim No. 6 for work done, but not paid and claim No. 10 on account of outstanding amounts as per the final bill. The Contractor filed a petition under Sections 14 and 17 of the Arbitration Act, 1940 (hereinafter referred to as, 'the said Act') for filing the original Award in Court and for making it Rule of the Court, which was registered as CS (OS) No. 2794/1994. The Award was filed by the learned Arbitrator in Court and was registered as Suit No. 160-A/1995. On notice being issued, DDA filed objections under Sections 30 and 33 of the said Act vide IA No. 6920/1995. The objections were partly allowed in terms of the impugned judgment of the learned Single Judge dated 05.10.2006. The Award was made Rule of the Court except qua claims No. 2, 4 and 5 and was modified pertaining to claim No. 9 reducing the interest from 16% p.a. to 12% p.a. till date of decree and modifying the amount awarded under claim No. 10 from Rs.10,31,942/- to Rs.10,00,368/- and post-decretal interest from date of decree till date of realization was granted @ 9% p.a.

(3.) The two parties have thereafter filed the present cross appeals one by the Contractor to the extent the Award was set aside as also on account of stated ambiguity in respect of interest from date of Award to date of decree in respect of the claims allowed for which no pendent lite interest had been granted and the other by DDA qua the claims made Rule of the Court.