STATE OF H.P. Vs. GIAN PRAKASH

JUDGEMENT

(1.) Heard counsel for the parties.

(2.) This appeal takes exception to the judgment of the learned Single Judge dated 15th October, 2009, dismissing the Arbitration Case No.15 of 2005, preferred by the appellants, before us. The appellants had challenged the award, passed by the Arbitrator, limited to the extent of relief granted to the respondent-contractor, inspite of additional Condition No.6 in the contract. The additional Condition No.6 of the contract reads thus:-

(3.) The appellants had filed counter-claim for costs of the material, supplied to the contractor, being sum of Rs.3,59,308/-. It is undisputed position that the material, so supplied by the appellants, was washed away due to flash floods. The cost, towards the said material was, therefore, claimed from the respondent-contractor by way of counter claim. That claim of the appellants was rejected by the Arbitrator. The Arbitrator also directed the appellants to refund the amount of Rs.45,691/-, deposited by the respondent towards security charges which were adjusted by the appellants while computing the claim amount. In addition, the Arbitrator granted claim 1(b) to the respondent towards loss on account of washing away of material, stacked at the work site, amounting to Rs.1,50,000/-. The Arbitrator also awarded amount of Rs.31,540/- towards loss of profit against the said claim of the respondent. In addition, the Arbitrator awarded 12% interest on security amount deducted and adjusted by the appellants being @12% per annum on Rs.45,691/- withheld by the appellants from 8th December, 1998 to actual date of payment.