UNION OF INDIA Vs. BAHL BUILDERS (P) LTD

JUDGEMENT

(1.) The petitioner, Union of India, challenges an Award of the sole Arbitrator dated 24th April, 2003 whereby the claim was allowed to the extent of Rs. 2,30,000/-, in favour of the respondent (hereafter called "the Contractor") with interest at 15% per annum.

(2.) The contractor had successfully bid for completing works tendered for by the petitioner. The tender was accepted on 29th March, 1996.The petitioner entered into a lump sum contract. According to the contract, the period of completion, for the two phases was 8 months for the first phase, and 15 months for the second phase. The total amount of the contract was Rs. 9,06,33,157.58. It is not in dispute that the time for completion was extended to 13th September, 1997 for Phase-II.

(3.) The contractor respondent raised disputes for compensation, on account of the alleged extra expenditure involved due to delay in completion. He claimed Rs. 6 lakhs.