R S BUILDERS Vs. D D A

JUDGEMENT

(1.) PRESENT appeal has been preferred under Section 37 (1) of Arbitration Act, 1950 (hereinafter referred to as the Act) for setting aside the judgment of learned Single Judge of this court dated 5. 7. 2006 in C. S. (O. S.) 3458/2002 by which the arbitral award was modified and made rule of the court. The appellant has also challenged order dated 1. 9. 2006 by which the review application of the appellant was dismissed.

(2.) THE relevant facts giving rise to the filing of present appeal are that the appellant was awarded a contract for construction of 1323 SFS Houses at Sarita vihar, Sector-1, New Delhi vide agreement no. 6/ee/sed-3/dda/88-89 dated 22. 9. 1988 by DDA. Certain disputes arose between the parties and arbitration was initiated as per clause 25 of the agreement. The arbitrator published his award on 4. 8. 1992, awarding a sum of Rs. 12,99,750/- to the appellant along with simple interest @ 15% per annum from the date of publication of the award to the date of actual payment or decree of the court whichever is earlier.

(3.) RESPONDENT DDA filed its objections under Section 30 and 33 of the Act. The objections were ultimately limited to claim No. 2, Item no. 1, relating to 'preparation of sub-grade'. The arbitrator awarded a sum of Rs. 8,97,564/-towards this claim @ Rs. 138. 38 per sq. m. The objection raised by DDA was that the agreed rates were derived from Delhi Schedule of Rates, 1985, (hereinafter referred to as 'dsr') and the rate of Rs. 138. 38 is payable @ 100 sq. mts. and not for one sq. mtr.