LAWS(DLH)-2009-7-546

DDA Vs. K.C. CHIBBER AND CO.

Decided On July 23, 2009
DDA Appellant
V/S
K.C. Chibber And Co. Respondents

JUDGEMENT

(1.) By this petition under Sec. 34, DDA (respondent before Arbitrator) has assailed an award dated 30th December, 2005 whereby the learned Arbitrator awarded an amount of Rs. 32,06,206/ - to be paid to the claimant/petitioner with future interest of 9% on an amount of Rs. 8,72,898/ - from the date of award till realization of the amount.

(2.) The award has been challenged by the respondent on various grounds, inter alia, that the award of the learned Arbitrator was contrary to the public policy. The award amounted to rewarding the contractor for indulging into corruption in connivance with the Engineers of DDA.

(3.) It is submitted that the contractor had left and abandoned the work in between and the work done by the contractor was of such a poor quality that the Lieutenant Governor had to institute an Inquiry. The Inquiry Committee appointed Central Building Research Institute, Roorkee (CBRI) to inspect the building for ascertaining structural soundness or otherwise of the existing construction before further construction could be started. The report of CBRI received by the Lieutenant Governor showed that the structure constructed by the contractor was of such a poor quality and so inherently weak that it was dangerous to allow it to stand and do further construction over it. No repair work could be undertaken of the structure, in view of the report of CBRI and in a part of the work the repair would have been more costly than the new construction. Thus, the entire structure had to be demolished.