HARBANS SINGH AND SONS Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) THE work of "manufacture and supply of machine made doors and window shutters" was awarded by the Delhi Development Authority, (hereinafter referred to as the DDA) to M/s. Harbans Singh & Sons (hereinafter referred to as the Contractors),on the basis of negotiated settlement specified in the agreement, entered into between the parties on 16 August 1984.

(2.) UNDER the said agreement the Contractors had to make supplies of the total value of Rs. 50 lakhs to the Delhi Development Authority f rom 24 May 1984 to 23 January 1985 at the agreed rates. The Office of the Chief Engineer of the Delhi Development Authority had to make allocations to its different divisions, against, which the-concerned Executive Engineers of the various divisions had to confirm the particular sizes and numbers of the shutters to meet the needs of the relevant housing schemes for which the allocation was made by the Chief Engineer. The Delhi Development Authority made in all nine numbers of. allocations between the period 29 May 1984 to 18 February 1986 awithe second allocation dated 20 June 1984 had to be cancelled on II October 1984. Against the effective eight allocations, the confirmations were effected by the concerned Executive Engineers of the divisions between the, period 16 June 1984 to 12 September 1986. It was on these confirmations that supplies had to be made. The expiry of contract period being 23 January 1985, supplies on confirmations sent on 26 December 1984 and after could not be made within "the stipulated period expiring on 23 January 1985. Applications for extension of time given by the Contractors were allowed by the Delhi Development Authority Without levy of penalty to cover the actual period of supply. The Contractors claimed that the application for extension of time were. made under threats-it was entitled to enhanced rates for the supplies made after the expiry of the stipulated period of supply i.e. 23 January 1985 and as the delay was on the part of the Delhi Development Authority in furnishing confirmations of sizes by various divisions of the Delhi Development Authority against the stipulated supply, they were not bound to supply at the contract rate but were entitled to the market rate prevailing at the time of supplies made after 23 January 1985. The Delhi Development Authority disputed the claims of the Contractors. The Contractors invoked the Arbitration clause, raising six disputes/claims and moved the personadesignata to appoint an Arbitrator, Upon which the Engineer Member Delhi Development Authority vide his Minutes dated 3 February 1999 appointed Shri M.S.Telang,as the Sole Arbitrator, to determine the disputes/claims raised by the Contractors, requiring him to give reasons for the award.

(3.) AN arbitrator being a chosen. Judge of the parties is a master of facts and law. His award is final both on facts and in law. He is not called upon to give detailed reasons for his award. To avoid arbitrariness, it is sufficient, if he indicates the trend of his thought process. It is well settled that his decision is not to be lightly interfered with or set aside and indeed an effort made to see if it could be maintained.