IRCON INTERNATIONAL LTD Vs. MEUMAL ATHWANI

JUDGEMENT

(1.) This is an application under section 34 of The Arbitration and Conciliation Act, 1996, for setting aside of an Award dated 31st December, 2005 of a learned Sole Arbitrator whereby several of the claims of the respondent herein were allowed. The Arbitrator was appointed by an order dated 15th May, 1998 and the arbitration spanned over 214 sittings culminating in the impugned Award of December 2005. By the impugned Award, the petitioner, a Government of India enterprise, was made liable for the sums claimed by the respondent and all the three counter-claims of the petitioner were rejected.

(2.) The disputes between the parties arose from a contract between the parties for construction of a steel Hangar inside the Dum Dum airport at Calcutta which was to be completed within 12 months from the date of the letter of acceptance dated 23rd March 1993. The contract was for a sum of Rs. 1,63,98,300/- which according to the petitioner, included the cost for fabrication as well as transporting the materials to the site. The respondent (claimant in the arbitration) filed a Statement of Claim for 18 claims under various heads including a claim for interest together with cost of arbitration out of which 14 claims were allowed, a few in part. The disputes, in a nutshell, constituted the respondent claiming escalation and other costs for the work done beyond the contractual period which according to the respondent was caused on account of the petitioner's failure to supply necessary documents and failing to ensure that the site was made ready for the specific work. The petitioner on the other hand, attributed the delay to the respondent with the additional point that payment for the work done by the respondent was made in accordance with the measurement book maintained by the petitioner and that the additional payment demanded by the respondent was without any basis.

(3.) The award with regard to Claims 1,2,3,4,7,13,14 and 16 amounting to Rs. 10,17,989.15/- have not been challenged and the petitioner has already paid Rs. 26,42,970/- including interest to the respondent on account of those claims in terms of an order dated 17th March, 2010. The relevant part of the said order is set out below: