DEVCHAND CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal filed under Sec. 37 of the Arbitration and Conciliation Act, 1996 (the Act), is against the order dtd. 4/12/2017 in O.P.(Arb.) No. 105/2015 of the District Court, Kasaragod.

(2.) The appellant herein is the petitioner before the court below and the claimant before the Arbitral Tribunal (AT). The respondent herein is the respondent before the court below and the respondent before the AT. The parties in this appeal will be referred to as described in the arbitral proceedings.

(3.) The respondent awarded the work of 'doubling of track between Shornur and Mangalore, Cannanore-Uppala sec. : collection and stacking of 50mm size machine crushed hard stone ballast alongside the alignment/station yards/on top of the new formation between Kottikulam and Kasaragod stations (Balance works)' to the claimant on 19/9/2000 for a value of Rs.1,19,39,274.00. Letter of Acceptance (LoA) was issued on 19/9/2000. The work was to be completed within a period of nine months, that is, by 18/6/2001. Alleging breach on the part of the claimant, the contract was terminated by the respondent before the expiry of the completion period. Disputes arose between the parties. Arbitration proceedings was initiated. The AT consisting of three Arbitrators passed an award on 24/4/2015. The AT disallowed all the claims of the claimant except claim no. 1 for release of an amount of Rs.3,46,959.00, which amount had been forfeited by the respondent towards risk liability amount. This claim was partly allowed to the tune of Rs.46,959.00. All the other claims including the prayer for return of the Earnest Money Deposit (EMD) was rejected. Aggrieved, the claimant/contractor took up the matter before the District Court. The said Original Application filed under s.34 of the Act was dismissed by the impugned order.