KOCHAR CONSTRUCTION CO Vs. UNION OF INDIA

JUDGEMENT

(1.) JUDGMENT , J.-

(2.) THIS is contract's (claimant) appeal against the judgment and decree dated 12th March, 1987 passed by the learned Single judge whereby the award dated 31st January, 1986 was set aside with respect to claim No. 3 and the claim regarding future interest. For the rest a decree was passed in terms of the award granting interest at the rate of 12 per cent per annum from the date of decree till payment in the event of failure of the respondent to pay the decretal amount within two months from the date of decree. The appellant is aggrieved by the decision of the learned Single Judge in setting aside the award regarding claim No. 3 and refusal to grant interest from the date of award till the date of decree on the claims which were allowed by the learned Single Judge.

(3.) BOTH the above submissions on behalf of Union of India found favour with the learned Single Judge and, therefore, the claim on account of escalation in the cost of construction after the stipulated due date of completion was disallowed and the award in this respect was set aside. We find ourselves in total agreement with the reasoning of the learned Single Judge in this behalf. In the facts and circumstances of the case mere filing of cost analysis cannot be accepted as the evidence of expenditure on account of increased cost of construction even if the cost analysis was not traversed by the respondent. While on question of traverse it may be mentioned that the respondent had filed a reply in opposition, though after the date of completion of arbitration proceedings and the claimant filed a rejoinder thereto. These were both before the date of the award.