DDA Vs. CDS GUJRAL

JUDGEMENT

(1.) THIS appeal challenges the judgment of the learned Single Judge dated 7th August, 1997, by which the objections preferred by the respondents were dismissed but the interest awarded by the learned Arbitrator's Award dated 23rd December, 1993 was reduced from 18% to 12%. The dispute between the parties arose from the construction work of 7,000 Dwelling Units at Trilokpuri Trans Yamuna area which involved a construction of 168 MIG and 56 LIG Houses.

(2.) THE respondent being aggrieved had preferred a claim before the Arbitrator and the Arbitrator awarded a sum of Rs. 5,05,577.22 in favour of the respondent/contractor. The award was challenged before the learned Single Judge and as recorded by the learned Single Judge and not disputed in the pleadings in this appeal, the main thrust of the argument of the learned Counsel for the respondent was to Claim No. 3 under the Award.

(3.) IN our view, the aforesaid payment was in relation to extra expenditure incurred on rise in emoluments of labour for the quantum of work executed after the expiry of the stipulated contract period. The Arbitrator has given a reasoned finding that delay in execution of the work was on account of breaches committed by the appellants. The High Tension Electric lines over a few blocks to be constructed under the contract were removed just near the expiry of stipulated contract period. The appellants did not hand over structural drawings for single unit blocks and make available the electricity connection till even expiry of stipulated contract period though the same was the appellants obligation in terms of the contract. Accordingly, there had been prolongation of work beyond the stipulated contract period because of delays attributable to the appellants.