LAKHMIR SINGH CHADHA AND CO AMD ORS Vs. PUNJAB STATE CO-OPERATIVE SUPPLY & MARKETING FEDERATION LIMITED AND ORS

JUDGEMENT

(1.) The Civil Revision No.247 of 2004 is against an order passed by the appellate Court in an appeal filed under Section 39 of the Arbitration Act, 1940. The arbitration award which was made the rule of Court admitting of some claim by the Contractor against the respondent allowed, inter alia, a claim for Rs. 2,50,000/-towards damages for prolongation of contract period and Rs. 4 lakhs towards extra expenditure towards procurement of materials in the appeal filed by the respondents. The appellate authority set aside the decree which was passed in terms of the award by the first Court on a singular consideration that the claims awarded by the Arbitrator that were made rule of the Court were contrary to an express clause in the general conditions of contract which was as under:-

(2.) By reading the same provision, the extra expenditure on procurement of materials as awarded by the first Court was also set aside. The revision petition has been filed by the Contractor against the modification made by the appellate Court. The respondent has come up with his own revision in Civil Revision No.3273 of 2004 against the award by the courts below as regards the other heads accepted by the Court of first instance and also affirmed in the appellate Court.

(3.) As regards the damages for prolongation of contract period which was awarded at Rs. 2,50,000/-, if we read through Clause No.22, which we have extracted above, it admits of no ambiguity at all, that the parties were specifically providing for immunity to the employer for a damage that resulted from delays in commencement or execution of the work. The appellate Court, in my view, therefore, was justified in holding that the Arbitrator misconducted himself rendering an adjudication which was contracted by the party as not amenable for raising a dispute. I, therefore, affirm the finding of the appellate in that regard.