UNION OF INDIA Vs. GURDEV SINGH DEVA

JUDGEMENT

(1.) C.M.No.3161-Cii-2015

(2.) The appellant-Union of India is aggrieved of the dismissal of the objections filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "1996 Act") for setting aside of the award dated 28.03.2013, whereby, compensation of Rs. 1,09,027/- along with interest @ 12 % per annum, has been awarded to the respondent.

(3.) Mr. Gautam Kaile, learned counsel appearing on behalf of the appellant-Union of India submits that compensation awarded by the Arbitrator is against the public policy. Thus, the objections were falling within the realm of Section 34 of 1996 Act. The Railway Administration is entitled to recover Rs. 29,56,648/- being the 10% penalty on the original costs of work as the contractor did not complete the work as per the agreement. The contract was accordingly terminated and the amount has been adjusted. The Arbitrator failed to notice the aforementioned facts and awarded the compensation. The claimant-contractor is not entitled to recover any amount as the final bill passed is for the less amount than the amount of penalty imposed for non completion of the work as awarded to him. The Arbitrator has ignored the fact that the costs of entire work was Rs. 29,56,486/-.