HARINDRA SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Sri K.K. Dubey for the appellant and Sri Devendra Gupta, Senior Advocate, for the respondents.

(2.) By means of this appeal, the appellant challenges the order dated 26.5.2000 passed by District Judge, Jhansi, in Misc. Case No.15 of 1998, whereby District Judge set aside the arbitral award dated 20.10.1997 passed by Arbitrator on the ground that reasons were ascribed and that the respondent to whom the arbitrator wrote a letter and deposited the award along with Annexure-A in two separate covers by raising the objection for payment of only the final bill, the Union of India did not produce before the authority below the second envelop which contained the reasons given by the arbitrator for allowing and/or disallowing the claim either of the appellant or the respondent.

(3.) The facts in brief are that by virtue of an agreement executed between the Union of India and Harindra Singh on 8.12.1987 the contract was given for a work for the value of Rs.31,48,602.40. The work was to commence from 30.121987 and was agreed to be over within a year by 29.12.1988. The work could not, however, be completed within the stipulated period and could actually be finished only on 31.3.1995. For this purpose eight extensions were given by the Union of India. The sole arbitrator had sittings of the arbitration and gave award on 20.10.1997 awarding the claim in favour of the contractor - Harindera Singh of the value of Rs.23,69,157.00. He also allowed interest on the awarded sum at the rate of 12% per annum and thus the total awarded money was calculated at Rs.23,73,489.96. The objections taken against the award are that it is against law; that the interest awarded before actual passing of the award; that the interest awarded is unreasonable; that the proceedings were not kept secret by the Arbitrator; that he had acted in excess of his jurisdiction in giving the award in respect of escalation of labour charges etc.; that the award is exparte and that the arbitral award does not state the reasons upon which it is based. The trial court did not accept any of the contentions of the Union of India but in the end portion, granted the prayer on the basis that the arbitral award lacked reasons. Thus, the prayer was made for setting aside of the award which was accepted. The Union of India had accepted all the claims but had kept the final bill pending and it was under these circumstances that the matter was sent for arbitration.