UNION OF INDIA Vs. THE CITY BUILDERS

JUDGEMENT

(1.) This is an application under Sec. 34 of the Arbitration and Conciliation Act, 1996 presented on 16th June, 2000 being aggrieved by and/or dissatisfied with an award passed on 27th March, 2000 by Mr. Kalyan Kumar Bose, a retired District Judge duly appointed as sole arbitrator by the Hon'ble Chief Justice of this High Court under an order dated 10th July 1998. It appears that the award is a reasoned award. Consequently upon presentation of this application, -his court was pleased to direct the parties to exchange their respective affidavits which was accordingly done.

(2.) The moot point of challenge is that the claims of the respondent are barred by Clause 25 of the contract while adjudicating such a claim, the arbitrator has committed a jurisdictional error. He further committed error by superseding scope of the Clause 13 of the general conditions of the contract. The arbitrator erred in law in awarding pendente lite interest and interest upon interest. Question of arbitrability of the claim as agitated by them (at the time of hearing application) under Sec. 11 of the Act, was not considered by the Arbitrator. The claim is otherwise barred by law of limitation. The award is bad in law and liable to be set aside.

(3.) It appears from the order dated 17th June, 1998 passed by a Single Bench of the court that the application under Sec. 11 of the Arbitration and Conciliation Act, 1996 was disposed of by a Single Bench of this court leaving aside naming the Arbitrator by the Hon'ble Chief Justice. Such order is an follows: