WISHWA MITTAR BAJAJ Vs. UOI

JUDGEMENT

(1.) The appellant (hereafter "the claimant") is aggrieved by the judgment and order of a learned Single Judge, allowing the respondent's Petition under Section 34 of the Arbitration and Conciliation Act, ("the Act") setting aside an award, made in its (i.e the appellant's) favour.

(2.) The Appellant was awarded a lump sum contract, for construction of infrastructure for breeding and training of dogs at RVC Centre and School at Meerut. The total contract sum was Rs. 2,79,44,098.10 and work was to be completed by 15.04.2003. It was completed on 12.04.2003 and the Appellant submitted the final bill. The payment towards final bill was made on 11.02.2004. At the stage of payment, certain amounts were withheld by the Respondent. This led to disputes and the matter was referred to arbitration. In the arbitral proceedings, the appellant claimed amounts towards 10 heads. Claim no. 1 sought compensation on account of delay in payment of running bills and final bill; Claim no.2 was for reimbursement of additional expenditure incurred for providing extra work; Claim no.3 was for reimbursement of payment made to idle labour; Claim no.4 was for reimbursement for charges paid for testing of steel; Claim no.5 sought release of bank guarantee against retention money; Claim no. 6 was for refund of amounts deducted on account of STE from the final bill; Claim no.7 sought reimbursement of expenditure incurred on renewal of bank guarantee; Claim no.8 sought refund of testing charges; Claim no.9 for reimbursement of extra expenditure incurred on watch and ward of the building due to delay in taking over possession and Claim no.10 was towards interest.

(3.) The Arbitrator disallowed claims no. 3, 6 & 8 and against other claims allowed different amounts. The learned Arbitrator allowed 12% interest for pre-arbitration period and 9 % interest for pendente lite and future periods.