RAFI Vs. UNION OF INDIA

JUDGEMENT

(1.) UNDER the agreement for construction of Byepass to N.H.I in the reach Burari Road to Jahangirpuri,S.H. balance earth work from C.H. 3500 to 4500 M, awarded to the petitioner, certain disputes had arisen between the parties and they in terms of the agreement were referred for arbitration to Shri Ch. Prabhakar Rao, the Arbitrator, respondent No. 2. Before the Arbitrator, the petitioner had preferred 13 claims claiming a total sum of Rs. 1,14,15,379.28 paise from the respondent No. 1 allegedly due to him under the contract. Reply to the statement of claim was filed by the respondent and respondent had also preferred certain counter claims. After hearing the parties, the Arbitrator made and published his award on 29.2.1984. By way of the said award, the Arbitrator rejected all the claims of the petitioner except claim No. 7. Counter claims of the respondent were also disallowed. UNDER claim No. 7, the Arbitrator allowed a sum of Rs. 14,100.94 paise in favour of the petitioner against a total claim of Rs. 4,40,000.00 . On filing the said award in Court, notice was given to the parties. Respondent No. 1 has filed its objections to the claim. Reply to the objections was filed by the petitioner and the following issues were framed :-

(2.) THE objection of Union of India to the award of a sum of Rs. 14,100.94 against claim No. 7 was that "according to the terms and conditions of the agreement the contractor was entitled for payment under Clause 12(1) of the agreement and he was paid at that rate by the department which was accepted by him at the stage of final bill. Nothing remains to be paid in this respect by the Ministry of Works and Housing. It appears that learned Arbitrator treated the extra work as done under clause (5) and allowed the contractor at the market rate. In doing so, the learned Arbitrator has misconducted himself and has travelled outside the scope of the agreement and the award in respect of claim No. 7 is not valid and needs to be quashed."