UNION OF INDIA Vs. DAULAT RAI AND SONS

JUDGEMENT

(1.) Objections under Section 34 of the Arbitration and Conciliation Act have been filed to the award dated 2nd July, 1999 published by Shri G.S.Mehta, CSW, Office of the Standing Panel of Arbitrators. The first objection raised is to the sum award under claim No.2.

(2.) Contract shows that contractor was to execute certain works in respect whereof material had to be supplied by the objector, meaning thereby, contractor had to provide labour. These works were withdrawn as contract proceeded. Contractor claimed Rs. 52,500/- stating that 30% cost of work could safely be assumed to be loss of profit inasmuch as the work was withdrawn.

(3.) Learned Arbitrator has awarded Rs. 10,000/-. The objections cannot be sustained for the reason it is settled law that where a contractor is prevented from doing a work awarded under the contract, he would be entitled to loss of profit as recompense. Second objection raised is in respect of payment to the contractor at enhanced rate for work executed beyond deviation limit.