C R GULATI Vs. UNION OF INDIA

JUDGEMENT

(1.) UNDER an agreement for the construction of staff quarters for Lal Bahadur Shastri Kendriya Sanskrit Vidyapeeth, awarded to the petitioner, certain disputes had arisen and the same were, referred for adjudication to the arbitration of Mr.S.S.Juneja. The arbitrator after hearing the parties, made and published his award on 12th March, 1993. The said award was filed in Court and after notice of filing of the award was given to the parties, Union of India has filed these objections for setting aside the award on the grounds as contained in the objection petition.

(2.) THE challenge to the award is only in respect of claim No.6 and 7. Under claim No.6, a claim of Rs.8,00,000.00 was made on account of infructuous expenditure and damages alleged to have been sustained by the petitioner due to various breaches committed by the Department. This amount of Rs.8,00,000.00 included a sum of Rs.6,50,000.00 being the difference of reasonable price and the price allegedly paid after the stipulated period and a sum of Rs.1,50,000.00 being the infructuous expenditure. THE arbitrator has awarded a sum of Rs.27,000.00 only under this claim to the petitioner. Under claim No.7, the contractor had claimed interest at the rate of 18% p.a. from the date of notice till the date of payment. THE arbitrator under this head has awarded simple interest at the rate of 12% p.a. from 10th January, 1986 to the date of publishing of the award and simple interest at the rate of 14% p.a. from the date of award till the date of payment.