K.S NARULA Vs. MCD

JUDGEMENT

(1.) The present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter, ,,Act) challenging the impugned award dated 30th November, 2012.

(2.) Vide work order dated 21st December, 2005, M/s Narula Construction Company, which is a sole proprietorship of Mr. K.S. Narula was awarded works for the improvement of Gokulpur Drain. The value of the tender was for a sum of Rs. 1,87,99,995/-. The time given for completion was 12 months. A formal agreement, in terms of the work order was entered into on 11th February, 2006. While the stipulated date for completion of the work was 31st December, 2006, the work was actually completed on 14th November, 2007. The contractor invoked arbitration in respect of several claims. Parallelly, the contractor also filed a Civil Suit challenging the penalty imposed by the MCD and in the said suit, the following relief was claimed: -

(3.) Along with suit, an interim application was filed seeking a restraint order against the MCD from appropriating the money which was due to the contractor. In the said application, a Division Bench of this Court vide order dated 12th September, 2008 passed the following order:-