UNION OF INDIA Vs. JAIN ASSOCIATES AND ANR.

JUDGEMENT

(1.) This applicant has been filed under Sections 30 and 33 of the Arbitration Act, 1940 (hereinafter referred to as the Act) for setting aside an award dated 18th Sept., 1991. The application was filed on 6th Jan., 1992.

(2.) The disputes between the petitioner and the respondent No.1 arose out of a contract under which the respondent No. 1 was to cons-tract a hostel building in the compound of Nizam palace, Calcutta. The contract contained an Arbitration Clause. On 31st Oct., 1979 the petitioner terminated the contract. On an application filed under Sec. 2 of the Act by the respondent No. 1, the arbitration agreement was directed to be filed and the disputes between the parties arising out of the contract was referred to Shri N. Krishnamurthi on 30th Aug., 1980. A statement of claim was filed by the respondent No. 1. The respondent No. 1 claimed an award of Rs. 13,65.000.00 with further interest at 18 per cent per annum. The break up of the claim is as follows:- <FRM>JUDGEMENT_51_LAWS(CAL)3_1992.html</FRM>

(3.) The petitioner filed a counter statement in which the claim of the respondent was disputed and a counter-claim was also raised. The counter-claim of the respondent was for a sum of Rs. 8,90,915.34. The heads of claim were as follows:- <FRM>JUDGEMENT_51_LAWS(CAL)3_1992(1).html</FRM>