UNION OF INDIA Vs. ARCTIC INDIA

JUDGEMENT

(1.) Both these Appeals arise out of the same order and were therefore heard together and are being disposed off by a common order. Appeal No. 121 of 2009 is filed by the Union of India (UOI) challenging the order passed by the Learned Single Judge refusing to set aside some of the claims awarded in favour of the Respondent. Appeal No. 782 of 2010 has been filed by the Contractor challenging the Order passed by the Learned Single Judge setting aside one of the claims awarded by the Arbitrator in favour of the Contractor. Since these are cross appeals, we will refer to the parties as 'the contractor' and 'UOI'.

(2.) On 21 December 1995 UOI invited tenders for replacing of BER A.C Plant at NAD, Karanja. The Contractor submitted its tender on 5 February 1996. UOI issued an acceptance letter on 9 April 1996 in favour of the Contractor. The contract was awarded at Rs.86,13,066/. The date of commencement as provided in the Work Order was 24 April 1996 and the stipulated date of completion was 23 July 1997. The period of completion provided was 15 months. Work was actually completed on 29 July 1999.

(3.) Various running account bills were submitted by the Contractor from time to time. According to the Contractor, UOI was responsible for delay in completion of the work causing loss. According to the UOI, the Contractor was responsible for delay and for causing loss.