G S KALRA Vs. NEW DELHI MUNICIPAL COMMITTEE

JUDGEMENT

(1.) For the construction of the Maternity Center at 48, Babar Road, New Delhi, petitioner's tender dated 8.8.1979 was accepted by the respondent. An agreement No. 7/ME (C-11)/79-80 to that affect was executed between the parties. In terms of the agreement the work was to start on 15.9.1979 and was to be completed on 14.7.1980. But the work was completed on 17.9.1981. By way of security deposit a sum of Rs.24567 remained deposited with the department. However, differences and disputes between the parties in respect of the said agreement were referred to the arbitrator, who gave his award on 20.7.92. The arbitrator has awarded a sum of Rs. 1,06,148.92 inclusive of pendente lite interest to the claimant/contractor. In addition, the arbitrator has also awarded interest @ Rs. 15% on the said amount. On 17.12.1992 arbitrator filed his award. Notice of filing of award was given to the parties. While the petitioner filed an application under Sections 14/17 of the Arbitration Act for making .the award a rule of the Court, the respondent NDMC filed objections under Sections 30/33 of the Arbitration Act against the award, which have been opposed by the petitioner.

(2.) The respondent is mainly aggrieved by the award under the claims No. 7, 10, 11 and 13.

(3.) Claim No.10:- The claimant/contractor claimed a sum of Rs. 3,092.29 on account of unwarranted reduction in agreement rates. Learned counsel for the respondent contended that the rates had been worked out and paid to the contract as per relevant clause of the agreement. On a consideration of the material on record, the arbitrator came to the conclusion that the payment was made at the reduced rates as per details in Annexure J which was wholly unjustified. The arbitrator, therefore, allowed the said claim of the contractor. The arbitrator has assigned valid reasons for accepting the said claim of the contractor. In my opinion, the award under this head does not suffer from any illegality.