WESTERN COALIFIEDS LTD Vs. N KUMAR CONSTRUCTION CO

JUDGEMENT

(1.) This is an appeal against the Judgment and decree dated 18-4-1989 passed by the learned Civil Judge, Senior Division, Nagpur in Special Civil Suit No. 677 of 1987, whereby the award passed by the Arbitrator was made the rule of the Court except the award in respect of the interest given by the Arbitrator. Accordingly, the appellants were directed to pay to the Respondent a sum Rs. 36,95,000/- together with interest at the rate of Rs. 10% per annum on the said sum from the date of award till the date of realization.

(2.) Briefly, the facts of the case are that on 30-12-1983, the appellant and the Respondent entered into an agreement (No. 36/83-84) at Nagpur for the construction of 7,000 metric tonnes capacity Coal Handling Plant at Umrer Colliery at Umrer. It was, inter alia, agreed that any dispute in connection with the said agreement would be referred for adjudication through arbitration. In October 1987, the Respondent served a notice of appointment of an Arbitrator, and accordingly, Shri J. P. Das was appointed as a Sole Arbitrator by the Chairman-cum-Managing Director of the appellant. A claim was submitted by the Respondent for 15 items and a counter-claim was also made against the Respondent by the appellant for a sum of Rs. 52,47,000/- for failure to complete the work. The counter-claim filed by the appellant was dismissed by the said Arbitrator while allowing the claim of the Respondent. All claims of the Respondent except the claim at Item Nos. 8, 10 and 11 which were outside the terms of the agreement were allowed by the Arbitrator. As such an amount of Rs. 36.95,000/- was awarded to the Respondent. Thereafter, on 13-10-1987, the Respondent filed an application under section 17 of the Arbitration Act which was registered as Special Civil Suit No. 677 of 1987 and the parties agreed for an extension. On 9-11-1987, the Arbitrator issued the corrections to the award consisting of accidental omissions therein. On 3-12-1987, the appellant filed a reply to the said application filed by the Respondent disputing the claim of the Respondents. It was contended in the said reply that the sole arbitrator had no authority whatsoever to effect any change to the arbitration award dated 4-10- 1987. It was further pleaded by the Appellant that the amount awarded was not correct and contrary to the evidence on record.

(3.) After considering the submissions advanced by the appellant and the Respondent, by the judgment dated 18-4-1989, the learned Civil Judge, Senior Division, Nagpur rejected the contentions of the appellant and made the award the rule of the Court, except the award in respect of the interest given by the Arbitrator. The appellants were accordingly directed to pay to the Respondent the said sum of Rs. 36,95,000/- along with interest at the rate of 10% per annum on the said amount from the date of award till the date of realization. Being aggrieved by the said judgment and decree, the present appeal has been preferred by the appellant.