EXECUTIVE ENGINEER(C) DR-VI Vs. BHASIN ASSOCIATES

JUDGEMENT

(1.) The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 has been filed challenging award dated 22nd December, 2010 passed by a Ld. Sole Arbitrator - Sh. S. Prakash, who is stated to be a technical Arbitrator of the Department.

(2.) The background of the case is that the work "construction of 21.3 MGD Switch Pumping Station at Tughalkabad" was awarded to M/s Bhasin Associates vide work Order No. WSU/EE(C)DR-VI/96/-7023 dated 25th September, 1996. The total value of the work order was Rs.1,82,33,044/-. The work was to commence on 5th October, 1996 and the stipulated date of completion was 4th June, 1998.

(3.) As per the contractor, the work was finally concluded on 31st December, 2003, but the Department disputes this position. The contractor raised various claims against the department. The same were referred to a Sole Arbitrator, who awarded certain sums in favour of the contractor. The present petition has been filed challenging the said award. The finding of the Ld. Arbitrator is that the contractor is entitled to outstanding payments and interest thereon. The Ld. Arbitrator also awarded escalation, refund of security deposits and interest thereon. Apart from this, the Ld. Arbitrator also awarded overhead costs due to prolongation of contract and for loss of turnover. Loss of profits under Claim 9 was rejected. The counter claims filed by the Department were also rejected.