UDAYANATH ROUT Vs. PARADIP PORT TRUST

JUDGEMENT

(1.) This appeal under Section 37 of the Arbitration and Conciliation Act, 1996, is directed against the order dated 21.3.2012, passed by the learned District Judge, Cuttack, in Arbitration Petition No.202 of 2008, setting aside the award passed by the sole Arbitrator, in exercise of power under Section 34 of the said Act.

(2.) The brief facts of the case is that the Paradip Port Trust ("PPT" for short)-respondent floated a tender for execution of the work "Pitching of side slope from the Oil Jetty by the North side of approach channel", in which the appellant was a bidder. In the said bid, the appellant being the lowest tenderer, PPT-respondent awarded him the work by executing an agreement with him, containing the terms and conditions for execution of the work. The subsequent agreement executed between the parties on 26.6. 2001 provided that neither of the parties shall be competent to resort to arbitration under the Arbitration and Conciliation Act, 1996, for adjudication of the claim and no suit or claim shall be brought in any place outside the State of Orissa. The total value of the work was Rs.79,54,162/- and the work, which commenced on 07.5.2001 was required to be completed on 06.11.2001. The aforesaid period of completion of work was subsequently extended, but the appellant without completing the work left the said work. In view of the same, the PPT rescinded the contract and floated a fresh tender at an additional cost of Rs.38,38,310/-. Subsequently, PPT filed a money suit against the appellant before the learned Civil Judge (Senior Division), Jagatsinghpur, for recovery of the additional cost incurred in completion of the work amounting to Rs.37,64,239/-, after deducting the security amount with 10% interest, which was registered as Money Suit No.1 of 2004. While the said suit was pending between the parties, the appellant-contractor filed an application before this Court under Section 11(6) of the Act, 1996, for appointment of an Arbitrator, which was registered as Arbitration Petition No.19 of 2004. The said application of the appellant was disposed of by the Chief Justice of this Court vide order dated 14.7.2006, appointing Shri Bibudhendra Mishra, Senior Advocate, as the sole Arbitrator.

(3.) The appellant-contractor filed his claim statement before the learned Arbitrator, claiming an amount of Rs.51,17,729.68 paise towards loss and compensation, with interest at the rate of 18% per annum.