ALLAHABAD DEVELOPMENT AUTHORITY Vs. VIDYAWATI CONSTRUCTION CO

JUDGEMENT

(1.) This appeal is directed against the judgment dated 24.5.1999 and decree dated 14.7.1999 making the award of the arbitrator dated 23.5.1997 as rule of Court and rejecting the objection of the appellants under Section 30/33 of the Arbitration Act, 1940 (in short the 'Act').

(2.) The Allahabad Development Authority, Allahabad, appellant, framed a project for construction of multi-storied commercial complex at Clock Tower, Chowk, Allahabad. It Invited tenders for constructing the commercial complex as framed by it. M/s. VIdyawati Construction Company, the respondent (hereinafter called the respondent-company) submitted the tender. The cost of the project was quantified approximately at Rs. 57,00,000. The company submitted its tender which was accepted by the appellant, Allahabad Development Authority (in short the A.D.A.). As per terms of the agreement, the construction was to be completed within a period of six months. The period was, however, extended. It was completed on 31.8.1987. The respondent-company had submitted twelve running bills for an amount of Rs. 1,14,43,922.01. The respondent-company was paid Rs. 1,14,00,000. The respondent-company submitted final bill on 9.12.1989 before the appellant.

(3.) As the appellant did not pay the amount, the respondent filed writ petition No. 9086 of 1993 in this Court for a mandamus commanding the appellant to release the amount of the bill as prepared by the appellant itself and further sought relief to direct the appellant to release F.D.Rs. of the respondent-company deposited by way of security deposits, totalling Rs. 5,79,690 and interest, etc. The writ petition was disposed of by this Court on 21.1.1994 directing the Vice-Chairman, A.D.A. to decide the claim of the respondent-company within a period of one month from the date on which a certified copy of the order is produced before him. The Vice-Chairman, A.D.A., by his order dated 17.6.1994 rejected the claim petition of the respondent-company.