UNION OF INDIA Vs. RAMESH LALWANI

JUDGEMENT

(1.) The present petition arises out of the Award dated April 13, 1994 of Mr.S.S.Juneja which has since been filed in this Court along with the proceedings. Notice of filing of the Award waissued to the parties directing them to file their respective objections, if any, within the statutory period. The claimant-Union of India has filed objections under Section 30 of the Arbitration Act, 1940 and has challenged the Award as illegal and prayed for setting aside of the same.

(2.) Mr.S.S. Juneja, Arbitrator in the Ministry of Urban Development, New Delhi was appointed by the Chief Engineer (NDZ)I, C.P.W.D., New Delhi under his letter No.4(10)91-A&C(NDZ), dated 19.5.92 as sole Arbitrator to decide and make Award regarding the disputes falling within the purview of clause 25 of the agreement entered into between the parties for the construction of R.C.C.overhead tank of 75,000 litres capacity at Dr.Zakir Hussain Memorial College, New Delhi. The claimant raised the following claims/disputes before the Arbitrator:-

(3.) While dealing with the Claim No.1 the Arbitrator examined the pleas raised by both the parties and on appreciation of evidence and consideration of documents held that rescission of contract by the claimant was not in order and the claimant was not entitled to any amount. The main plea was that the design submitted by the respondent was not in terms of the contract and had deficiencies and, therefore, show cause notice was issued. The respondent failed to submit the designs as per terms of agreement and the contract was validly rescinded vide order dated 13th March, 1991. The tenders for the balance work were called after rescission of the work and the rates quoted by the lowest tenderer were higher by Rs.3,94,000.00 as compared to rates quoted by the respondent. The pleas of the claimant were rejected and the Arbitrator held as follows:-