RAJIV GANDHI NATIONAL INSTITUTE OF YOUTH DEVELOPMENT, REP. BY ITS DIRECTOR Vs. M/S. SARAVANA CONSTRUCTIONS PVT. LTD.

JUDGEMENT

(1.) THIS intra court appeal filed under Section 37 of the Arbitration and Conciliation Act 1996 challenges the order dated 11 July 2008 in Original Petition No.716 of 2007, whereby and whereunder the learned Single Judge dismissed the application filed under Section 34(2) of the Arbitration and Conciliation Act challenging the award dated 30 March 2007 on the file of second respondent. The facts:

(2.) THE appellant is an organization established by the Ministry of Youth Affairs and Sports, Government of India. The appellant wanted to put up an institutional building at Sriperumbudur. The appellant floated tender for construction. The bid submitted by the first respondent was accepted. The appellant and the first respondent entered into an agreement, which contain the terms and conditions of the building contract.

(3.) THE first respondent failed to complete the construction within the stipulated period. The application submitted by the first respondent for extension of time to complete the construction was partly allowed. Thereafter the appellant terminated the contract. The termination was on account of the failure on the part of the first respondent to show considerable progress in the work as indicated in the agreement entered into between the parties. The first respondent initiated proceedings for appointment of an Arbitrator to resolve the dispute between the parties. The second respondent was appointed as Arbitrator.