UNION OF INDIA Vs. ASIAN TECHS LTD

JUDGEMENT

(1.) This appeal and the revision are directed against the common Judgment in Arbitration O.P. No. 18 and 4 of 1994 respectively of the Third Additional Sub Court, Ernakulam.

(2.) M.F.A. No. 452 of 1997 was preferred by the Union of India and its officers challenging the Judgment in Arbitration O.P. No. 18 of 1994 which was filed by the appellants under S.30 and 33 of the Arbitration Act to set aside the award. Arbitration O.P. No. 4 of 1994 was preferred by the. respondent herein, M/s. Asian Techs Limited under S.17 of the Act for passing a Judgment and Decree in terms of the award. The court below allowed O. P. No. 4 of 1994 and the petitioner therein was granted a decree in terms of the award for an amount of Rs. 50,22,612 with 18 percent interest from the date of the decree till realisation. O.P.No. 18 of 1994 for setting aside the award was dismissed. Union of India and its officers have come up challenging those orders.

(3.) Respondent herein, Asian Techs Ltd. entered into an agreement with the Union of India for the construction of "Provision of Lab and Administrative Block" etc. for N.P.O.L. at Kakkanad, Cochin. Agreement was dated 2nd September 1986 and the probable amount of contract was Rs. 3,58,96,665. Construction was to be completed before 8th September 1988. Period of the contract was 24 months. Ext. R - 1 is the agreement and Ext. R - 1 (a) is the General Conditions of Contract known as I.A.F.W. 2249. According to the Union of India, due to the delay caused by the respondent, project could not be completed by 8th September 1988, but completed by 30th June 1990. Disputes and differences arose between the parties and the disputes were referred for arbitration to the Chief Engineer, Air Force as per the arbitration clause. Respondent, Asian Techs Limited claimed a total amount of" Rs. 1,47,60,385 with interest and costs. Union of India submitted their defence statement. The arbitrator in this case entered into reference on 1st January 1993 and passed the Award on 30th December 1993. Arbitrator partly allowed claim Nos. 1 to 3, 5, 9, 12, 17, 19, 21, 22, 24, 26, 30, 35, 37, 33, 40, 41, 44 and past, present and future interest as per Clause.46 raised by the respondents and disallowed the counter claim raised by the Union of India. Ultimately arbitrator passed an award oil 30th December 1993 in favour of the respondent Asian Techs Limited allowing their claim to the extent of Rs. 50,22,612 with interest. The award was challenged on various grounds.