DELHI DEVELOPMENT AUTHORITY Vs. SUNDER

JUDGEMENT

(1.) This is an appeal against the judgment of the learned Single Judge dated 16th March, 2006 dismissing the objections preferred by the appellant/Delhi Development Authority (for short 'DDA') to the award dated 1st August, 1992 passed by a Sole Arbitrator in favour of the respondent/Contractor.

(2.) The respondent/contractors M/s. Sunder Lal Khatri & Sons were awarded the contract for construction of 192 LIG Houses at Shalimar Bagh, Block No. A, Pocket-J vide Agreement No. 4/EE/DDV/80-81. The work was to be completed by 8th May, 1981 but the same could not be completed even till the end of 1984. Ultimately, 'the contract was rescinded by the appellant/DDA on 1st December, 1984. The DDA also imposed penalty under clause 2 of the contract in January 1985. The respondent/contractor invoked the arbitration clause raising five claims, of which Claims No. 4 and 5 are relevant and read as follows:-

(3.) The appellant had also raised various counter claims, of which Counter Claim No. 1 alone is relevant and the same reads as follows:- "Counter Claim No. 1: Rs. 1,90,436/- levied as compensation under clause 2 of the agreement."