G.SELVAM Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal is preferred by the Contractor against BSNL being unsatisfied with the order passed by the Court below under Sec. 34 of the Arbitration and Conciliation Act, 1996, confirming the award passed by the Sole Arbitrator appointed as per the terms of the contract entered between the appellant and the respondent in respect of constructing Telephone Exchange Building at Karaikudi, for the first respondent.

(2.) Brief facts:- The appellant an authorised Civil Contractor for BSNL, entered into an agreement with the first respondent on 25/9/1997, for construction of 10K CDOT, Telephone Exchange Building at Karaikudi. As per the terms of the contract, the time fixed for completion of work was 14 months commencing from 5/10/1997. The time was essence of the contract and in case of any delay attributable to the Contractor, the time for completion can be extended, on payment of compensation as penalty. If the delay is due to unavoidable hindrance not attributable to the contractor, then, the levy of compensation can be waived as per Clause 5 of the Contract. Admittedly, in the instant case, the work got completed only in the month of September, 1999 with delay of 660 days. Based on the data recorded in the hindrance register for the days of delay not attributable to the Contractor, waiver was granted and for 155 days being the unjustifiable part of delay, compensation of Rs.31,000.00 levied as penalty.

(3.) The appellant relying upon the entries made in the Hindrance Register and the file notings, sought reference to the Sole Arbitrator, wherein he made 7 claims, which includes refund of penalty levied and claim of interest and compensation for delayed payment along with interest for delay in refunding EMD / SD and costs.