V THYAGARAJAN AND BROS Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal is filed against the judgment and decree dated 29-02-1996 in O.S. No. 145 of 1993 on the file of Additional Subordinate Judge, Gudur, Nellore district, where under the award of the Arbitrator relating to Claims Nos. 2, 7 and 14 is set aside while the award relating to Claim Nos. 1, 8, 9 and 13 is confirmed, granting further interest at 18% per annum, thereby dismissing the suit to that extent. CRP No. 3729 of 1996 is filed questioning the judgment and decree in O.S. No. 113 of 1993 while CRP No. 2165 of 1999 is filed against the judgment and decree in O.S. No. 116 of 1993.

(2.) The brief facts that led to the referring of the dispute to the Arbitrator may be stated thus: On 07-10-1986 the Union of India, Department of Space represented by its Civil Engineering Division, Sriharikota, had entrusted the work of construction of 85 quarters of "C" type Additional Housing Colony at Sullurpet, to the Appellant/Petitioner for a total amount of Rs. 62,79,239/-. As per the Agreement, the work has to be completed within 10 months. The work commenced on 22-10-1986 and it has to be completed by 31-5-1987, as per the Agreement. But, the work could not be completed due to various reasons and the Department has extended the time for completion of work. Some disputes arose between the parties, an Arbitrator was appointed on 06-2-1992 and the matter was referred to him. The Appellant has made 15 claims before the Arbitrator whereas the department has made 6 claims.

(3.) The Arbitrator passed award on 30-4-1993 in favour of contractor by awarding Rs. 7,17,073/- along with interest @ 18% per annum from 15-6-1988 till the award is made Rule of Court. The Arbitrator disallowed claim No. 3 to 6, 10,11,12,12(A) and 15, made by the Appellant contractor while granting certain amounts in respect of other claims and the Arbitrator has disallowed all the five claims made by the Department of Space, against which O.S. No. 145 of 1993 was filed while the Arbitrator filed O.S. No. 113 of 1993 to make the award rule of court and the contractor filed O.S. No. 116 of 1993 seeking to set aside the Award to the extent of rejecting the claims.