GLOBAL HEALTH CITY Vs. AHAL ASSOCIATES

JUDGEMENT

(1.) An Articles of Agreement dated 02.02.2010 was signed between the petitioner and the respondent/Contractor for construction of LINAC Bunkers, for which a letter of Award had been issued to the respondent dated 29.12.2009. The mode of resolution of disputes arising from the said agreement is contained in Clauses 05 and 06, as under:

(2.) It is the interpretation of the above said Clauses which is required in the present petition filed under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'said Act').

(3.) It is the common case of the parties that the claims of the respondent have not been made under Clause 05 and it has no application to the present case. It is Clause 06 which comes into operation on account of the respondent claiming certain amounts and being disputed by the petitioner, the parties approached the Architect, who, in terms of the letter dated 01.04.2013, observed that he verified the work done by the respondent/Contractor in the presence of both the parties earlier, and would make a final inspection before passing an "Award" as agreed to by the parties involved. This was in the context of the objection raised by the petitioner vide letter dated 05.02.2013 to the effect that the Architect had to decide the dispute, but there was no question of reference of disputes to him, as an "Arbitrator". The Architect then proceeded to inspect the site and post inspection, minutes were drawn and a document called "Award" has been made, whereby a sum of Rs.170,06,120/- has been held payable to the respondent and after taking into consideration the amount already paid and TDS Certificates, the balance amount has been quantified at Rs.19,74,698/-.