DELHI JAL BOARD Vs. RAJORA BUILDERS

JUDGEMENT

(1.) THE challenge by Delhi Jal Board (`DJB') under Section 34 of the Arbitration and Conciliation Act, 1996 (`Act') is to an Award dated 26th September 2011 passed by the sole Arbitrator in the disputes between DJB and Respondent No.1 M/s. Rajora Builders arsing out of an work order dated 30th August 2000 whereunder Respondent No.1 was to replace the old damaged AC/PVC/CI water lines by 100/150 mm dia water lines in various parts of West Zone in Delhi.

(2.) THE total cost of the works was Rs.7,22,31,217. THE stipulated date of start of the work was 10th September 2000 and the date of completion was 9th September 2002. According to DJB, even though there was no impediment in the execution of the work, Respondent No.1 delayed the execution because of poor planning and mismanagement. According to DJB, specific reasons for the delay in execution of the work were non-deployment of specified labour, delay in construction of chambers for sluice valves, inter- connection with existing network. DJB states that it wrote a number of letters to Respondent No.1 regarding timely completion of work. THE work was ultimately completed on 6th December 2003. DJB claims that during the execution of the work, complaints of poor quality were received. DJB wrote several letters in vain to Respondent No.1 to come for a joint investigation.

(3.) ON the basis of an admission by DJB in its reply to the claims filed by Respondent No.1 that DJB owed Respondent No.1 a sum of Rs.22,67,944.50, Respondent No.1 sought an interim Award to By an order dated 10th January 2005, the learned that extent. Arbitrator directed the DJB to pay Respondent No.1 Rs.22.68 lakhs. The impugned Award notes that Respondent No.1 was paid Rs.22,67,944 by DJB pursuant to the said interim Award.