DDA Vs. SAT PAUL

JUDGEMENT

(1.) This appeal arises out of an order passed by a learned Single Judge of this Court whereby an application under Section 30/33 of the Arbitration Act, 1940 for setting aside an arbitral award dated 25th May, 1995 has been dismissed and the award made a rule of the Court.

(2.) Disputes between the parties in relation to a civil contract were referred for adjudication to the sole arbitration of Sh.L.R. Gupta, Retd. Director General, Works, PWD. A number of claims, it appear, were made by the contractor claimant before the arbitrator which were examined by the arbitrator at length culminating in an award for payment of a sum of Rs.1,17,173/- in favour of the claimant and a sum of Rs.37,138/- awarded in favour of the respondent/DDA. The net amount payable after adjustment of the said amount was Rs.80,035/- with interest @ 12% p.a. from 23rd May, 1991 to 25th May, 1995 and @ 15% from the date 25th May, 1995 till the date of actual realization. The arbitrator had also directed return of the bank guarantee for a sum of Rs.1,00,000/- furnished by the contractor and payment of cost of Rs.10,000/-

(3.) The appellant appears to have filed objections to the award inter alia contending that the award was against the weight of evidence on record and that the arbitrator had failed to give reasons for his conclusions as required by the terms of the contract. Award of interest and costs was also challenged by the appellant. These objections did not however find favour with the learned Single Judge before whom the same were argued. The learned Single Judge has by the order impugned in this appeal rejected the objections and made the award a rule of the court holding that the arbitrator had indeed given reasons in support of the findings recorded by him and that since the Court was not sitting in appeal over the award made by the arbitrator, there was no room for any interference with the same. The present appeal, as already noticed above, assails the correctness of the said order.