KRISHNA CONSTRUCTION CO Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) JUDGMENT , J.

(2.) M/s Krishna Construction Company, present petitioners, were awarded the work for construction of 200 Dwelling units at Phase II, Asian Games Village Complex, Siri Fort Area, New Delhi vide letter of award dated October 27, 1980 for an amount of Rs. 2,49,47.589 by Delhi Development Authority, respondent. A contract agreement No. 3/EE/AGDII/80-81 was duly executed between the parties thereby incorporating the terms and conditions with regard to the work. Under the Agreement, the work was to start on November 6, 1980 and was to be completed within a period of 9 months i.e. on or before August 5, 1981. The work was to be executed on crash basis in view of the impending Asian Games. It is alleged by petitioners that the work was executed under trying conditions as respondent kept on changing the original specifications, designs, materials to be used. Thereafter, various disputes arose between the parties. The agreement contained an arbitration clause. Shri H.D. Kochhar, Supdt. Engineer was appointed as the sole arbitrator under Clause 25 of the Agreement vide letter dated July 20, 1982 by Engineer Member of respondent DDA. He entered upon the reference on January 3, 1983 and conducted the arbitration proceedings till May 20, 1983. Shri Kochhar retired from the services of respondent. Another arbitrator, namely, Mr. G.S. Subramanyam was sought to be appointed in his place. Petitioners being aggrieved, filed a petition being OMP No. 94 of 1983 under Section 33 of Arbitration Act, 1940 in the High Court of Delhi thereby challenging the appointment of the new arbitrator. It appears that this petition was contested by respondent DDA. However, vide order passed on November 13, 1984, by this Court - - Sbri D.P. Goyal was appointed as the sole arbitrator. He entered upon reference on March 29, 1985. Petitioners filed their statement of claims thereby claiming various amounts. Petitioner's claims are as under :