DELHI JAL BOARD Vs. ESSKAY KOHLI

JUDGEMENT

(1.) THE petitioner, Delhi Jal Board has preferred the instant petition under Section 34 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') challenging the award dated 14th October, 2001 passed by the Sole Arbitrator Shri K. D. Bali, Additional Secretary (Retd.), Ministry of Urban Development.

(2.) THE respondent was awarded the work of construction of underground reservoir at Deer Park vide work order dated 28.12.1995 at a total cost of Rs. 1,39,93,995/ -. As per the work order, work was to commence from 29.1.1996 and was to be completed by 28.4.1997 i.e. within a period of 15 months. The respondent apparently took various steps to gear itself up to start the work. However, there was one stumbling block. The permission for felling trees on the site was not made available. While this uncertainty was looming large, a formal contract dated 8.5.1996 was executed by the parties. Even thereafter, the requisite permission was not received and eventually on 29 -1 -2000 the decision to close the contract was finally taken. Earnest money was released on 24.2.2000. The respondent invoked the arbitration clause claiming a total of Rs. 41.76 lakhs plus interest under seven heads of claim. The Arbitrator entered upon reference on 14.5.2001 and the award was passed after hearing the parties on 14.10.2001.

(3.) I find force in these submission of the petitioner. What is relied upon as documentary evidence in support of claims are only letters written by the respondent claiming that he has become entitled to certain amounts as damages on account of non -communication of necessary permission to cut trees. No other documentary evidence, except for expenditure incurred on salaries of employees was produced in support of various claims. The Arbitrator has allowed these claims (except claim No. 4) on the premise that the various claims contained in the communications of the respondent were not refuted by the petitioner.