DRIPLEX WATER ENGINEERING Vs. DSIDC

JUDGEMENT

(1.) IA No.8702/1999 (Objections u/S 30 and 33 of the Arbitration Act, 1940) The respondent aggrieved by the award dated 27.3.1999 of Justice T.P.S. Chawla (Retired) who acted as the Sole Arbitrator in respect of the disputes between the parties has filed the present objections under Sections 30 and 33 of the Arbitration Act, 1940 (hereinafter referred to as the said Act).

(2.) The disputes relate to the notice inviting tender dated 9.10.1987 for the work of designing, construction and commissioning of a Waste Water Treatment Plant for Narela Industrial Complex. The petitioner's tender was accepted and the formal contract was executed on 2.5.1989. The initial period contemplated for completion of work under the Letter of Intent was 15 months but a further three months period was granted for testing and commissioning. The Contract was thus to be completed within 18 months on or before 10.7.1990.

(3.) The Contract did not make due progress and only small portion of the work was done during the stipulated period of time for which the parties are putting blame on each other. In view of the disputes even the work was apparently given up by the petitioner and finally vide letter dated 3.6.1992, the petitioner invoked the Arbitration Clause, requiring the Managing Director of the respondent to appoint the nominee Arbitrator. Even thereafter there was considerable delay resulting in proceedings before the Court and finally Justice T.P.S. Chawla (Retired) was appointed as the Sole Arbitrator by the High Court of Delhi.