S R CONSTRUCTION CO Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) This petition has been filed by the Petitioner under Section 11(6) (a) and (c) of the Arbitration and Conciliation Act, 1996 for appointment of Arbitrator. Petitioner is a partnership firm duly registered under the Partnership Act and Shri Sudhir Kumar is a registered partner of the firm.

(2.) The respondent No.3 had invited tenders for construction of 160 houses for Category II and III (80 Nos.) two bed rooms category"II. (80 Nos.) three bed rooms category"III and 120 Nos. S/G. under SFS in Vasant Kunj, Sector"D, Pocket"II, Gr.-III, e/c. Internal development of land. The petitioner contended that he had submitted a tender which was accepted and an agreement No.3/EE/HD-XXI/DDA/1985-86 was executed between the petitioner and the respondents. It was asserted by the petitioner that he mobilized all materials and labor to complete the work within time. Despite all efforts made by him, there were substantial delays by the respondents and the work could actually be completed on 24th August, 1989. The petitioner attributes all the delays on the part of the respondents and attributable to him. It has been contended that though the work was completed on 24th August, 1989, respondent instructed the petitioner to hand over the possession of flats to the alottees and till the allotment of all the flats, respondents did not make payment of the final bill in spite of several requests. The respondent is alleged to have unlawfully deducted various amounts from the bills of the petitioner and unlawfully recovered rebates which they were not entitled to. The respondents also unlawfully recovered various other amounts by making reduction/deduction items and withheld amounts of the petitioner. The petitioner was not paid on account of escalation under clause 10-CC and the losses and damages suffered by the petitioner have not been paid by the respondents.

(3.) The petitioner stated that there is an arbitration agreement in terms of clause 25 between the parties which is as under:- 'Clause 25 " Except where other wise provided in the contract all questions and disputes relating to the meaning of the specifications designs, drawings and instructions hereinbefore mentioned and as to the quality of workmanship of materials used on the work or as to any other questions claim, right, matter or thing whatsoever in any way arising out of or relating to the contract designs, drawings specifications, estimates instructions orders or these conditions of otherwise concerning the work of the execution or failure to execute the same whether arising during the progress of the work or after the cancellation, termination completion or abandonment thereof shall be referred to the sole arbitrator of the person appointed by the Engineer Member Delhi Development Authority at the time of dispute. It will no objection to any such appointment that the arbitrator so appointed is a Delhi Development Authority employee that he had to deal with the material to which the contract relates and that in the course of his duties as Delhi Development Authority employees had expressed view on all or any of the matters in dispute of difference. The arbitrator to whom the matter is originally referred being transferred of vacating his office or being unable to act for any reason, such Engineer Member Delhi Development Authority as aforesaid at the time of such transfer, vacation of office or liability to act shall appoint another person to act as arbitrator in accordance with the terms of the contract. Such person shall be entitled to proceed with the reference from the stage at which it was left by the predecessor it is also a term of this contract that no person other than a person appointed by such Engineer Member, Delhi Development Authority as aforesaid should act as arbitrator and, if for any reason that is not possible, the matter is not to be referred to arbitration at all. In all cases where the amount of the claim in dispute is Rs.50,000/- (Rupees Fifty Thousand) and above, the arbitrator will give reason for the award.