UNION OF INDIA Vs. NAV BHART NIRMAN COMPANY

JUDGEMENT

(1.) . Through this application under Section 34 of the Arbitration and Conciliation Act 1996 (hereinafter referred to as "Act") Union of India seeks for setting aside the arbitral Award dated 25.1.01 with additional Award dated 11.6.01. Along with said application, an application under sub-section 3 of Section 34 of the Act has also been made explaining the delay in not challenging the said Awards within a period of three months from the date of making of the additional Award and for extension of time beyond three months but within a further period of 30 days. The Arbitral Award dated 25.1.01 and the additional award dated 11.6.01 rendered by the sole arbitrator are sought to be challenged and set aside primarily on the ground that the sole arbitrator has exceeded his jurisdiction and powers and thereby misconducted the proceedings by making an additional award on the application filed by the respondent-contractor under Section 33 of the Act because the said provision could be invoked only for the purpose of correcting any computation errors, clerical or typographical errors or any other errors of similar nature and not for making an additional award, the Arbitrator having already considered the claims but did not make any award qua the said items.

(2.) . The germane facts leading to the present applications are that disputes having arisen between the parties in relation to a certain work executed by the respondent-contractor M/S Nav Bharat Nirman Company & Anr., the Chief Engineer (CPWD) vide his letter No. 4(16)/97-A&C(NDZ)1, dated 9.7.78 appointed Dr. Y. P. C. Dangay as the Sole Arbitrator to decide the said disputes and make the Award. The sole arbitrator entered upon the reference on 30th July, 1998, and made and signed the Award on 25.1.01. On 10.2.01, the Contractor moved an application under Section 33 of the Act before the Arbitrator seeking modification of the Award which application was opposed on behalf of the Union of India by filing objections. On 11.6.01 the sole arbitrator passed an additional award in respect of extra item No. 42/23 and 43/24 i.e. fire retarded paint and flame proofing respectively, The awards of the arbitrator are under challenge in this application under Section 34 of the Act.

(3.) . In the application under Section 34 (3) of the Act it is averred by the Union of India that though the additional Award was made by the Arbitrator on 11.6.01, still a copy of the said award was received by the Union of India- objector in their office on 27.6.01 and on receipt of the same, case was processed at different levels viz. Executive Engineer, Chief Engineer and Government counsel which consumed sufficient time as a result of which the application under Section 34 of the Act could not be filed within three months of the date of disposal of the application under Section 33 of the Act which is stated to be due to the reasons beyond the control of the petitioners and unavoidable necessity of procuring the case at various administrative channels.