MADRAS FERTILIZERS LIMITED REP BY R R PANDALAI, EXECUTIVE DIRECTOR (PERSONNEL AND ADMINISTRATION) Vs. SHRIRAM ENGINEERING CONSTRUCTION COMPANY LIMITED REP BY SANTHOSH KAMAT CHIEF EXECUTIVE OFFICER AND K RAJAGOPALAN RAJ ASSOCIATES

JUDGEMENT

(1.) The petitioner is a Government of India undertaking and have filed the above O.P. under Section 34 of the Act, 1996 to set aside the award dated 1.10.2001 passed by the 2nd respondent-arbitrator.

(2.) The brief facts leading to the case are as follows: The petitioner invited bids for the construction of quarters for Central Industrial Security Force at Manali New Town and the 1st respondent was selected and the work was awarded on 18.10.1990 and the time for completion of the work was 14 months. Certain disputes arose between the parties and the matter was referred to the 2nd respondent-arbitrator to decide the disputes. The 1st respondent claimed payments towards (1) pending bill payments amounting to Rs. 32, 37, 626.55 and (2) loss of profit and goodwill amounting to Rs. 50,00,000/-. The 1st respondent contended before the arbitrator that the petitioner herein did not make the payment to the bill raised for a sum of Rs. 23.33,983.28 which was recommended by the Architect and also for the bill value of Rs. 9,30,643/- for extra works certified by the Architect totalling a sum of Rs. 32, 37, 626.55/-, which is the first claim. It was the further contention of the let respondent that because of the non-payment of bill in time, the 1st respondent had to face severe financial crisis and their reputation got damaged and so they are entitled for a sum of Rs. 50,00,000/- which is claim No. 2. The 2nd respondent-arbitrator by an award dated 1.10.2001 allowed a sum of Rs. 25,41 353.30 towards the 1st claim and a sum of Rs. 2,54,135/- towards claim No. 2 Aggrieved by the award dated 1.10.2001 this O.P. has bean filed.

(3.) The following grounds have been raised by the petitioner for assailing the award dated 1.10.2001: