DELHI JAL BOARD Vs. RAJORA BUILDERS

JUDGEMENT

(1.) The petitioner has filed the objections to the award of the sole arbitrator Mr.J.K.Mehra (Retd.) dated 16.06.2007 under Section 34(2) of the Arbitration and Conciliation Act, 1996 ('the said Act' for short).

(2.) The dispute arose out of the award of a contract by the petitioner to the respondent of the work of construction of 12 MGD sewage pumping station at Uttam Nagar in pursuance to a letter dated 09.01.1992 for a sum of Rs 1,11,51,213.92/- The stipulated date for completion was 17.07.1993 i.e. a period of eighteen months. The scope of the work was revised upwards and increased to Rs.1,39,39,016/- and the stipulated date was thus extended to 17.04.1994.

(3.) The respondent made various claims on account of the fact that the work had to be carried on much beyond the stipulated date due to the factors attributable to the petitioner. The arbitrator has also come to the conclusion that the delays were attributable to the petitioner. This finding is based on appreciation of evidence in terms whereof it has been observed that the hindrances in the work were brought to the notice of the petitioner and in view thereof extension of time was sought which was so granted. 98 per cent of the work was completed as informed by the respondent vide letter dated 18.08.1994 but the respondent had to remain at site for execution of the balance 2 per cent work up to 27.01.1997. The petitioner extended the time up to 15.02.1995 in terms of letter dated 21.11.94 with due escalation. The time was again extended up to 31.12.1995 vide letter dated 14.09.1995 with reservation of rights. The petitioner thereafter issued a letter dated 14.08.1996 extending the time with full benefits up to 30.09.1996 accepting that the prolongation of the contractual period was on account of the factors attributable to the petitioner.