UNION OF INDIA Vs. CHANNA BROTHERS AND CO

JUDGEMENT

(1.) The Union of India has filed this appeal against the order passed by the Court below dated 30.5.1997 by which the award has been made rule of the Court and the application filed on behalf of the appellant has been rejected.

(2.) Briefly stated the facts are that the appellant invited tender for constructing buildings at New Cantonment, Allahabad, in the year 1989. The respondent submitted tender which was accepted by the appellant. The work was to be completed within the time specified in the agreement. The respondent got the time extended and completed the work on 10.1.1990. On completion of the work, the respondent claimed that they were entitled to the prices of the material which he used for construction purposes and certain other things. This was not accepted by the appellant. The dispute was referred to the sole arbitrator. Sri B. M. Kohli, on 13.10.1994. He entered inlo reference on 1st November, 1994. The appellant also made various claims before the Arbitrator, particularly in regard to the materials supplied to the respondent, but neither the material so supplied was returned nor its amount was adjusted.

(3.) The arbitrator gave award on 30.12.1995 and awarded Rs. 4,40.182.44 to the respondent and further 18% interest on such amount for the period between the 25.3.1991 to 30.12.1995. The arbitrator also accepted certain claims of the appellant and awarded a sum of Rs. 1,02,450.73 to it, but no interest was awarded on this amount. The respondent filed application before the Court below under Section 14 read with Section 17 of the Arbitration Act. 1940, for making the award dated 30.12.1995 rule of the Court. The appellant filed objection under Section 30/33 of the Arbitration Act for setting aside the award. The application was registered as Suit No. 75 of 1096. The Court below dismissed the objection of the appellant and made the award rule of the Court with further direction that the respondent shall be entitled to 6% interest on the amount awarded by the arbitrator to the respondent from the date of award dated 31.12.1995 till 30.5.1997.