UNION OF INDIA Vs. ASSOCIATED CONSTRUCTION

JUDGEMENT

(1.) This is an appeal under Section 13 of Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 (hereinafter referred to as "The Commercial Courts Act") read with Section 37 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as "the Act"), assailing the order dated 17.08.2016 (hereinafter referred to as the "impugned order") passed by the learned Single Judge of this Court, whereby the learned Single Judge has upheld the award of claims no.5 and 11, while dismissing the objections to the Arbitral Award dated 26.06.2015 filed under Section 34 of the Act.

(2.) The brief facts of the present appeal are that the parties had entered into a contract dated 28th Feburary'2009 for the provision of OTM Accommodation for CASD at Delhi Cantt-10 (CA No. CEDZ-27 of 2008-09). The estimated contract price was for an amount of Rs. 6,20,75,026.71/-. Initially, the period of completion was for 15 months, w.e.f 14th March, 2009 to13th June, 2010, however, the said period was subsequently extended by the respondent and the work was actually completed on 21st February, 2012. However, certain disputes arose during the execution of work between the parties. Arbitration was invoked as per the terms of the contract. The appellant restricted the challenge to claim no.5 pertaining to material and labour escalation and claim no.11, pertaining to the pendente-lite and future interest. The Sole Arbitrator allowed both the claims by awarding a sum of Rs. 49,25,240/- against claim No.5 and by rendering simple interest of 12% per annum in the favour of the respondent. Aggrieved by the Award, the appellant moved the court under Section 34 of the Act by filing an O.M.P (C) 89/2016 before the learned Single Judge challenging the said Award. The learned Single Judge dismissed the petition on the ground that the Sole Arbitrator had pronounced the award in consonance with the contract, hence, the present appeal.

(3.) Applications being CM APPLs 3178/2018 (application under Section 5 of Limitation Act, 1963 for condonation of delay in filing the appeal) and 3180/2018 (application under Section 5 of Limitation Act, 1963 for condonation of delay in re-filing the appeal) have been filed by the appellant. Notices in the aforesaid applications have been issued.