UNION OF INDIA Vs. SHREE GANESH CONSTRUCTIONS, COONOOR

JUDGEMENT

(1.) Challenge in this appeal is to the order of the learned District Judge, Udhagamandalam passed in exercise of jurisdiction under Sec. 34 of the Arbitration and Conciliation Act, 1996.

(2.) The proceedings before the learned District Judge emanated in the following background: The appellant had entrusted a work of laying road with the respondent on 7/11/2010 and the work ought to have been completed within a period of six months that is on or before 6 th May 2011. An extension of three months was granted and that came to an end on 4/8/2011. However, the respondent completed the work on 27/1/2012. After completion and handing over, the respondent had made a claim which was referred for arbitration to the Arbitrator appointed by the appellant.

(3.) The claims of the appellant were under five heads. The Arbitrator who is a technically qualified person had discussed each and every claim and had accepted certain claims and rejected some of them. The claim No.1 which related to the work done bills was accepted partially and an award of Rs.35,38,671.62 was made under claim No.1. Claim No.2 which related to unnecessary expenses to the tune of Rs.40,31,860.00 was rejected in toto. Claim No.3 was Bank interest payment for a period of six months. Though the Bank interest was claimed, the Arbitrator awarded only 8% Simple Interest and which worked out to Rs.14,27,264.00. On Claim No.4, which related to the administrative expenses, the Arbitrator awarded a sum of Rs.1,00,000.00 as a consolidated sum.