VAKIL CHAND BINDAL Vs. DELHI DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) By the agreement No.5/EE/SED/87-88 dated 30.9.1987, the petitioner was awarded the work of construction of cement concrete paths and pavements in pocket-C, SFS Houses, Section-F, Sarita Vihar, Delhi. As per the agreement, the work was to start on 10.10.1987 and was to be completed on or before 9.2.1988. However, the work could not be started within the stipulated period and the contract was rescinded on 21.3.1988. Disputes and differences between the parties in respect of the contract in question were referred to the arbitrator, who gave his award on 30.4.1992. On 27.4.1993, the arbitrator Mr. A.L. Garg filed his award. Notice of filing of the award was given to the parties. The respondent DDA filed objections under Sections 30/33 of the Arbitration Act against the award, which have been opposed by the petitioner.

(2.) The objections of the DDA having been opposed, the following issues were framed:

(3.) While claimant contractor claimed refund of earnest money amounting to Rs.20,000.00 , the respondent DDA preferred a counter claim of Rs.1 lac on account of forfeiture of the earnest money. The arbitrator rejected the counter claim but allowed the contractor's claim on the following grounds:-