NATIONAL PROJECTS CONSTRUCTION Vs. R S AVTAR SINGH

JUDGEMENT

(1.) This appeal is directed against a judgment and order of a learned Single Judge of this Court, in CS (OS) 1497/1993 dated 15.10.2008, in respect of objections to an award, made in terms of provisions of the erstwhile (and now repealed) Arbitration Act, 1940.

(2.) The dispute arose between the parties with respect to foodgrain godown construction and was referred to Sh. T.S. Murthy, the Sole Arbitrator by letter dated 04.05.1989 in terms of Clause 36 of the General Conditions of the Contract. The Sole Arbitrator after conducting the proceedings gave his award of Rs. 19,91,418/-in favour of the respondent and against the appellant on 31.07.1990. That award was set aside by judgment of a Learned Single Judge on the ground that the Sole Arbitrator misconducted himself in the proceedings thereby depriving the reasonable opportunity of hearing to the appellant. The respondent appealed that decision; the appeal was heard by a Division Bench which did not find any merit and directed the appellant to appoint another Arbitrator, pursuant to which Sh. G.K. Saxena was appointed. This arbitrator rendered a nonspeaking lump sum award for Rs. 13,87,160/- in favour of the respondent and directed the appellant to pay interest @ 15% per annum from 02.07.1993 to the actual date of payment of the Award or date of decree, whichever is earlier. The appellant (NPCC) filed objections in Court, under Sections 30 and 33 of the Act, before Learned Single Judge of this Court who upheld the Arbitrator's award.

(3.) It is argued by NPCC that the Sole Arbitrator did not give reasonable opportunity to it to address oral arguments/submissions in support of its case despite a written request having been made. It is also argued that while awarding amounts, the arbitrator did not go into the relevant records and documents and instead made the award on lump sum basis. There were 14 claims and from a bare reading it was not possible to find out which claim was allowed and which was disallowed. NPCC's counsel relies on the decision reported as Punjab State Electricity Board v. Punjab Pre-Stressed Concrete Works, 2001 6 AD(SC) 33 and Tamil Nadu Electricity Board vs. M/s Bridge Tunnel Constructions, 1997 3 AD(SC) 458. It is argued that the Sole Arbitrator acted without jurisdiction in entertaining new claims/variated claims and adjudicated them without evidence.