J S CONSTUCTION Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) It seems that the arbitration proceedings between the parties are becoming an endless game. The petitioner herein was awarded the work of construction of CSC at Mansarover Park, Shahadra, Delhi vide agreement No. 12/EE/ED-12/1/88-89. As it happens invariably in such contracts, disputes arose between the parties. The petitioner had certain claims against the respondent-DDA which DDA was disputing. Accordingly, arbitrator was appointed and disputes were referred to him, The learned arbitrator gave his award. DDA challenged the said award in CS (OS) No. 2434-A/94. Those objections were decided by this Court vide judgment dated 1st November 1996. Award relating to claims No.2 and 3 was set aside and directions were issued to the arbitrator to give his decision afresh in respect of these claims within four months, as the arbitrator had failed to give reasoned award on these claims. After hearing the parties the learned arbitrator rendered fresh award dated 27th November 1997 in respect of these two claims. DDA again filed objections, i.e. IA No. 2648/98 in this suit. These objections were decided vide order dated April 16, 2004 and this award on the aforesaid two claims was again set aside. It was found that after the remission of the case back to the arbitrator, fresh award was passed without affording any opportunity to the parties, including the DDA and the arbitrator had proceeded in absentia. The whole purpose of remitting the award to the arbitrator was, therefore, frustrated. It was also found that the award was not even given within four months which was the time fixed by the court in order dated 1st November 1996, while remitting the matter back to the arbitrator. The matter was, therefore, again remitted back to the arbitrator with direction to give hearing to both the parties and make his decision afresh on claims No.2 and 3 and returned the findings on the said two claims. Time frame of four months was again stipulated.

(2.) Pursuant to the aforesaid direction the learned arbitrator held the hearing by summoning both the parties and has now given his award dated 20th August 2004. Once again the DDA has raised objection to this award vide IA No. 521/2005. Since these objections are not filed within stipulated period, along with the objection, the DDA has also filed IA No. 5950/2005 seeking condonation of delay in filing the objections.

(3.) In so far as application for condonation of delay is concerned, it is stated in this application that notice of the filing of the said award was issued on 18th September 2004 and was served on the respondent on 21st October 2004. The last date for filing the objection was 20th November 2004. However, the objections were filed on 3rd January 2005. It is stated that the respondent held bona fide view that provisions of Arbitration and Conciliation Act, 1996 were applicable as per which, objections could be filed within 90 days. The DDA was not aware that provisions of Arbitration Act, 1940 were applicable and, therefore, objections were to be filed within 30 days. The respondent was also not able to contact its Advocate who was entrusted with the matter earlier when earlier awards were challenged as he was suffering from serious illness.