HARI VANSH CHAWLA Vs. PREM KUTIR CO OPERATIVE

JUDGEMENT

(1.) Under an agreement entered into between the parties on April 26, 1987, the petitioner was awarded the work of construction of flats for the respondent society. Though, the total value of the work to be executed under the contract was approximately Rs. 1.70 crores, the petitioner was not able to complete the same and the work was abandoned in between. The petitioner raised his third running bill on 3rd October. 1989 which was subsequently revised vide the third revised and final bill dated 9th November, 1989 as asked for by the architect vide his letter dated September 20, 1990. It appears that after some negotiations, the matter was settled between the parties and the full and final settlement was drawn on a stamp paper on December 4, 1989. Under the settlement duly witnessed by the architect, a total sum of Rs. 24,03,0007.00- was assessed to be due to the petitioner being the value of the work done by him and after taking the value of the material supplied to him by the respondent and another sum of, Rs. 50.000.00 being the income-tax deducted at source, a sum of Rs. 14,75,000.00 was found due and payable to the petitioner. From out of this sum, a sum of Rs. 13,75,000.00 (including the amount of mobilisation advance) already stood paid and the balance sum of Rs. 1,00,000.00 was, therefore, paid by the respondent to the petitioner by means of a cheque. It was stated that after this payment nothing remains due to the petitioner.

(2.) In spite of full settlement of all the claims, the petitioner again raised the same claims before the architect. This was followed by another letter dated February 12, 1990 written by the advocate of the petitioner to the society informing it that in spite of submitting the claims to the architects, no decision has been conveyed by them and as such the same amount to withholding of certificate under the agreement and claims were required to be referred to arbitration. He, therefore, appointed Mr.J.R. Bhalla. architect, 5, Sunder Nagar, New Delhi as his arbitrator for adjudication of the disputes between the parties and called upon the respondent to agree to his appointment as sole arbitrator and in case he was not acceptable as the sole arbitrator, the respondent was requested to exercise its option by appointing an arbitrator within fifteen days of the receipt of the said letter. As no reply had been given by the respondent to the aforesaid letter, the petitioner by letter dated April 6, 1990 appointed Mr.J.R.Bhalla. architect as the sole arbitrator and requested him to proceed with the reference. Copy of this letter was sent to the respondent.

(3.) Mr.J.R.Bhalla. the arbitrator appointed by the petitioner. entered upon the reference and made and published his award dated 14th November, 1990 awarding a sum of Rs. 7,37,699.00 in favour of the petitioner and further directed the respondent to pay interest at the rate of 12 per cent per annum on the amount awarded by him from the date of the award till the date of payment. Respondent was also directed to issue a certificate in favour of the claimant towards recovery of income tax deducted at source.