REUNION ENGINEERING CO PRIVATE LTD Vs. NBCC LIMITED

JUDGEMENT

(1.) The present reference arises out of an order of the Division Bench dated 27.3.2012 requiring the following question to be answered:

(2.) The facts giving rise to the dispute are that the respondent was awarded the contract of two hotels in Iraq by the State Organization for Tourism (SOFT), an undertaking of the Government of Iraq. The respondent in turn entered into two separate contracts on 12.3.1983 with the appellant for the electrical portion of the work for the hotel projects. The appellant completed the entire work pertaining to the electrical installation by 1990. In view of certain disputes which arose between the parties, the same were sought to be referred to arbitration in view of arbitration clause. There was initially some disputes qua the appointment of the arbitrator but ultimately Shri S.R. Nair was appointed as the sole arbitrator by the Delhi High Court in O.M.P. No. 49 and 50 of 1989. The said arbitrator made and published two awards on 22.10.1994 allowing most of the claims of the appellant while rejecting the counter claims of the respondent. The awards were thereafter filed before this Court and are stated to have been made rule of the Court on 5.8.2005. These in turn gave rise to four appeals.

(3.) In the course of the arbitration proceedings before Shri S.R. Nair, the respondent had preferred a counter claim No.9 for balance amount of Iraq Dinar 15,000.00 due and payable by the appellant to one M/s. Sulaiman & Co. (for short 'M/s. Sulaiman') which was engaged by the appellant at the end of the contract for liquidating their branch in Iraq. It is the say of the respondent that since this amount was not paid by the appellant, the respondent as the main contractor became liable for this amount and there was possibility of the claim being laid by M/s. Sulaiman. This counter claim was rejected by the arbitrator on the ground that it was premature.