TECHNOFAB ENGG LIMITED Vs. BHARAT PETROLEUM

JUDGEMENT

(1.) Work of installation of fire fighting equipment at the Bharat Petroleum Corporation Limited installation at Bijwasan was awarded to the petitioner. The contract period was eight months and the scheduled completion was 16.9.1985. The work, however, could be completed by the petitioner only beyond the scheduled period and after extension was granted for completion of the same. The value of the contract was Rs. 26,89,202.90 and the respondent deducted a sum of Rs. 1,34,460.00 from the amount due and payable to the petitioner by way of penalty in terms of Clause 4 of the agreement and Clause 25 of the General Condition of Tender.

(2.) Disputes arose between the parties in respect of the aforesaid deduction made from the final bill of the petitioner in pursuance of which, the parties appointed their arbitrators and the retired Chief Engineer of C.P.W.D. was appointed as an Umpire. The two arbitrators received claims and counter claims filed by the parties and also the documents placed on record by the parties. After hearing the parties, the two arbitrators made and published the award on 30.12.1990. Being aggrieved by the aforesaid award passed by the arbitrators and in pursuance of filing of the award in this Court, the respondent has preferred an objection under Sections 30 and 33 of the Arbitration Act which is registered as I.A. No. 6400/1991.

(3.) The respondent/Objector was represented by Mr.P.Banerjee who had vehemently supported the objection filed by the respondent whereas, none appeared for the petitioner. Two issues were framed in the proceedings: