UNION OF INDIA Vs. AGRAWAL WATER SUPPLIERS

JUDGEMENT

(1.) This is a petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenging the impugned award dated 31.10.2013 of the sole arbitrator, whereby the learned arbitrator has awarded a sum of Rs.4,50,384/- along with 12% single interest on the amount awarded against claim no.3.

(2.) An award was passed by the arbitrator on 31.10.2013. The petitioner has assailed the said award on the ground that it has been passed in mechanical manner and no reason has been given by the arbitrator for arriving at its conclusion. The award is not supported by any evidence. It is further submitted that the award is contrary to the tendered document. Learned arbitrator has also failed to give the reasoning on how it had arrived at the finding that the final bill of Rs.3,75,992/- is due after payment of Rs.1248978/-. It is further submitted that the arbitrator has wrongly awarded the interest on the awarded amount and it is against the clause 16(2) of General Conditions of the Contract (GCC) since the clause stipulates that no interest will be paid on earnest money/security deposit or amount payable to contractor under the contract. It is submitted that the award is contrary to the law laid down by the Supreme Court in titled as The New India Civil Erectors (P) Ltd. vs. Oil & Natural Gas Corporation, 1997 AIR(SC) 980 and judgment of Gauhati High Court in Arbitration Appeal No.4/2001 (DB) tilted as Union of India vs. Major V.Nijhawan (Retd) which was upheld by the Supreme Court in SLP (C) bearing no.14749/2002. Reliance is placed on the findings of the Supreme Court in titled as ONGC vs. Saw Pipes Ltd., 2003 5 SCC 705 It is prayed that the award dated 31.10.2013 be set aside.

(3.) The notice was issued to the respondent. They have not filed any reply. However, the arguments have been addressed and a document has also been filed.