MARWAHA CONSTRUCTION COMPANY Vs. AIRPORT AUTHORITY OF INDIA

JUDGEMENT

(1.) This petition was filed by the petitioner under Section 14 and 17 of the Arbitration Act for making an award dated 26.10.1996 as Rule of Court. The Arbitrator awarded a total sum of Rs.1,31,693.48 to the claimant/petitioner and interest @ 18 % per annum on this amount from 1.1.1989.

(2.) The respondent filed objections against the award u/s 30 and 33 of the Act alleging that the Arbitrator passed the award mechanically and some of the facts stated by the Arbitrator regarding Arbitration proceedings were incorrect. No counter claim was filed by the respondent whereas the Arbitrator recorded that a counter claim was filed by the respondent. There was no Arbitration Agreement dated 23.11.1989. No rejoinder was filed by the petitioner but there is a mention of filing of rejoinder. The Arbitrator had asked the respondent on 31.8.1996 to submit a consolidated final bill by 15th September, 1996. The respondent submitted final bill on 14th September, 1996 showing that there was a negative balance, towards the petitioner, of Rs.23,272/- and this fact was altogether ignored by Arbitrator. The Arbitrator, therefore, misconducted himself.

(3.) On merits, it is stated that the claim of petitioner was for sum of Rs.1,94,453/- and Arbitrator awarded an amount of Rs.1,31,693.48 ignoring the admissions of the petitioner that there was a recovery of Rs.46,150/- on account of cement supplied by the respondents, i.e., 35.5 ton at the rate of Rs.1300/- per ton and there was a recovery of Rs.11,626/-. The Arbitrator also ignored that a sum of Rs.18,299.30 was received by the petitioner from the respondent on 31.10.1988 by a cheque after the submission of final bill dated 26.6.1988 and this amount has not been accounted for.