UNION OF INDIA Vs. AJANTA ENTERPRISES

JUDGEMENT

(1.) This is an application under Sec. 34 of the Arbitration and Conciliation Act, 1996 challenging the Award passed by the Ld. Sole Arbitrator dt. 13/7/2010. The respondent being the successful bidder entered into a Contract No. 205 dt. 14/12/1995 for supply and delivery of stone Ballast and to loading into wagon of Nimdih Depot of Adra Division. As per contract, the stipulation date of completion was 12 months with effect from 28/11/1995. The estimated cost of the said work was 53,25,000/- and the value of the contract on the basis of the rate agreed by the respondent was Rs.56,22,750.00. The respondent had supplied ballast during the 1st quarter but the respondent could not supply 7500 cum of stone ballast within 2nd quarter i.e. in between 28/2/1996 and 27/5/1996 and only 6851.89 cum of stone ballast was supplied. The respondent had applied for extension of time for supply of balance 2nd quarter till 27/11/1996 but the petitioners have not taken any decision and finding no other alternative the respondent had stopped the work from 28/11/1996 and finally the petitioners have terminated the contract on 31/3/1997.

(2.) As the petitioners have withheld the amount of Rs.66,425.00 and also instead of extending the time for supply of balance quantity of stone ballast have terminated the contract, the respondent has invoked the provision of appointment of Arbitrator. The petitioners have not appointed an arbitrator as per the request made by the respondent and accordingly the respondent had approached this Court for appointment of Arbitrator and an Arbitrator was appointed.

(3.) On 30/5/2002, the Ld. Sole Arbitrator had published an award in favor of the respondent by rejecting the counter claim made by the petitioner. Being aggrieved with the Award dt. 30/5/2002, the petitioners have preferred an application under Sec. 34 of the Arbitration and Conciliation Act, 1996 before this Court being AP No. 273 of 2002 and the said application was disposed of on 18/2/2009 by passing the following order: