MAHANAGAR TELEPHONE NIGAM LTD Vs. UNITY BUILDERS

JUDGEMENT

(1.) This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the "Act") has been filed by the petitioner challenging the Arbitral Award dated 28.04.2012 along with the order dated 12.06.2012 passed by the Sole Arbitrator adjudicating the disputes that have arisen between the parties in relation to the Agreement No.EE(C) V/MTNL/AG/06-07/63 for the Construction of T.E. Building at Mayur Vihar, Phase-II, New Delhi (balance work awarded by the petitioner to the respondent).

(2.) The challenge to the Award is to the award of claim no.1, part of claim no.2 and claim no.3, which were amounts withheld by the petitioner on account of exercise of lien under Clause 52.2 of the General Conditions of Contract (GCC) for the amounts recoverable /claimed by the petitioner under the other contracts awarded to the respondent. Clause 52.2 of the GCC is reproduced hereinunder:

(3.) The Arbitrator has allowed the said claim in favour of the respondent on the ground that the petitioner has already made claim of such amounts in arbitration proceedings initiated in relation to the other contracts. In the opinion of the Arbitrator, once these amounts have been claimed in the other arbitration proceedings, retention of the amounts under Clause 52.2 of the Agreement was unjustified and unlawful. I cannot agree with the finding of the Arbitrator.