MAHANAGAR GAS LTD Vs. BABULAL UTTAMCHAND

JUDGEMENT

(1.) The Petitioner, who is the original respondent has challenged, by petition under Section 34 of the Arbitration and Conciliation Act, 1996 (The arbitration Act) reasoned award dated 5th March, 2010 passed by the learned sole arbitrator.

(2.) The Petitioner awarded to the Respondent (the claimant) the work of Project Management and Construction of pipeline network for domestic supply of natural gas in the area of Santacruz by work order dated 12th October, 2002. It was for three years from the date of letter of acceptance. The value of the work was Rs.3,87,07,260.00. The Respondent accordingly mobilised requisite resources and invested huge amount. The Petitioner was responsible to provide gas connection to the individuals of area. The Respondent was required to enter into agreement with the customers. The Petitioner failed and neglected to provide gas to the customers though the pipeline work was completed by the Respondent. The delay in supply of gas was for about 18 months, resulted in non-payment by the customers and consequent non-payment for the work done to the Respondent by the Petitioner. The Respondent, therefore, suffered heavy financial losses because of breach of the terms of the contract. For various reasons including default on the part of the Petitioner, the full work could not completed in stipulated period, because of change of specifications from time to time by the Petitioner. Therefore, in view of arbitration clause, the Respondent raised claims. The Petitioner also filed counter claims. The reply and the rejoinders were filed. One witness each was examined. The learned arbitrator heard the matter, accordingly, from time to time and not granted all the respective claims except challenged in the petition.

(3.) On 7th August, 2008, so far as counter claim No.18 is concerned, both the parties agreed and decided to arrive at agreed figure of the balance amount payable to the claimant on account of work done (Claim No.1) and the amount payable from the claimant to the Respondent on account of Material Reconciliation Recoveries. On 5th January 2009, both the parties, under authorisation of the respective clients filed jointly signed statement informing an agreed figure of Rs.35,37,176/- as the amount payable to the Respondent on account of work done but not paid and a figure of Rs.7,17,445/- as the amount due from the respondent to the petitioner on account of recovery against material reconciliation.