G V MALLA REDDY Vs. HUDA

JUDGEMENT

(1.) THIS is a tortuous case first of this kind, having occupied four full working days for investigating into questions of fact and law as a Court original jurisdiction under the following circumstances. These petitions filed by the parties are in the nature of a suit under Section 16, and an O.P. under Section 30 fi the Atbitration Act (Act 10 of 1940), for short, "the Act", for setting aside the Award and to make the rule of the Court.

(2.) M/s. G.V. Malla Reddy & Brothers, Hyderabad, entered into an agreement with the Huda, viz., Agreement No. 6/77, on December 8, 1977 for construction of District Commercial Centre at Tarnaka, for a total sum of Rs. 77,94,885/-, and to complete the work within twelve months after the site was banded over. The work was to be completed by December 8, 1978. But, it was in fact, completed and possession handed over on March 31. 1981. As the preparation of the final Bill was delayed by the Huda, the claimants filed a statement on December 17, 1982 before the named Arbitrators in the Contract. Since the named Arbitrators neglected to enter upon reference, O.P.52 of 1983 on the file of the Court of the First Additional Judge, City Civil Court, Hyderabad was filed for the removal of the named Arbitrators, and for appointment of an Arbitrator in their place. The Court passed an order removing the named Arbitrators and appointing an Arbitrator against which order CRP Nos. 1457 and 1458 of 1984 were filed by the parties before this Court. when they came up for hearing, this Court, by order dated August 1, 1986 appointed Sri Justice M. Krishna Rao, a retired Judge of this Court, as the sole Arbitrator. Thereupon, the Huda went in appeal to the Supreme Court, viz. Civil Appeal Nos. 2617 and 2618 of 1987. The Supreme Court agreed, on a compromise, for appointment of a Co-Arbitrator along with the sole Arbitrator appointed by this Court. Accordingly, this Court by order dated October 28, 1987 appointed Sri K. Yagnanarayana retired Chief Engineer, Roads and Buildings, Andhra Pradesh, as the Second Arbitrator along with Sri Justice M. Krishna Rao. Thereafter, as a co-opted Umpire, Sri Justice Y. Venkatarama Sastry, a retired Judge of this Court, was appointed. Then, a joint-memo was filed by both the parties before the Arbitrators to extend the time till March 31,1988 and the time was accordingly extended. Sitting went on, on November 22, 1987, December 5 1987 Decmber 12, 1987 December 13, 1987, December 21, 1987 and December 27, 1987. Thereafter, on hearing both the parties and consideration of the documents relied upon by both the sides, the Arbitrators passed the Award in respect of 26 issues. With respect to Issue Nos : 1, 5 and 6 viz, for Rs.3,34,243/-, Rs 53,306 and Rs. 52,66,596/-, a sum of Rs. 4, 27, 706/- was awarded. In the first instance, it also included Issue No. 7 for refund of Rs. 1,29,263,/- beirg the amount withheld from the Bill at 2-|% per cent. The Arbitrators disallowed the claim under Issue Nos : 3, 8, to 18, 24 and 26. On Issue Nos :2, 4, 20, and 21, relating to interest at the rate of 24% from December 17, 1982, on various amounts, the Arbitrators awarded simple interest at the rate of 18% per annum on the amount awarded from December 17, 1982 till the date of decree or realisation, whichever is earlier. However, no interest was awarded from a date prior to the date of claim petition. On Issue No. 19, the Arbitrators awarded a sum of Rs. 1,33,400/- out of Rs.2,00,000/- claimed towards extra expenditure for providing richer mix for the RCC. Thus, the Award was made. Thereafter, an application was made on January 16, 1988 for correction of the Award on. Issue No: 7, and the Arbitrators awarded Rs 1, 37,653/- by order dated January 18, 1988 after giving notice to and hearing the parties. Thus, the Arbitrators corrected the award after duly signing the same. Assailing the award of that amount, the Huda filed CMP No. 11352 of 1989 under Sections 14 (2), 15(c), 30 and 31 of the Act, for setting aside or modifying the Award to the extent it was amended on January 18, 1988, i. e , to the extent it went against the Huda. The claimants filed CMP No. 19259 of 1988 under Sections 33 read with 30 of the Act, and Section 151 of the Code of Civil Procedure, to set aside the Award to the extent the Award went against them.

(3.) THUS, all the C.M.Ps. arise out of the same Award necessitating disposal by a common judgment.