VIDESH SANCHAR NIGAM LTD. Vs. ESS KAY FURNISHERS

JUDGEMENT

(1.) THIS is a petition under Section 34 of the Arbitration and Conciliation Act, 1996 (for short 'the Act) filed by the petitioner, Videsh Sanchar Nigam Ltd whereby objections have been raised to the award dated 12.5.1999 passed by the Arbitral Tribunal consisting of three arbitrators in respect of the various claims raised by the respondent, Contractor M/s. Esskay Furnishers, arising out of a contract for carrying out interior renovation and allied civil, plumbing, fire fighting, electrical, fire detection and furniture work for the petitioner, for which the petitioner issued the work order on 10.9.1996. Clause 46 (There are two consecutive clauses numbered as 46. The second of such clauses is the Arbitration Agreement) of the conditions of contract contains the arbitration clause under which disputes and differences between the parties were referable to arbitration.

(2.) THE starting date of work was 17.9.1986 and the stipulated date of completion was 15.3.1997. The completion period was six months. The value of the work as per the contract was Rs. 52,22,081/ -. The work was not completed by the respondent. The contract was terminated by the petitioner. The arbitration agreement was involved by the respondent.

(3.) AS per the award the arbitration proceedings commenced on 7.5.1998. The arbitrators made their award on the various claims preferred by the respondent and the counter claims preferred by the petitioner on 12.5.1999. While the counter claims of the petitioner were rejected in toto, the Tribunal awarded various amounts against the claims preferred by the respondent.