EXECUTIVE ENGINEER, PWD Vs. RAJESH THAKUR

JUDGEMENT

(1.) Vide agreement No. 115 of 1995-96, the work of "Construction of Type-VI Houses/Cottages, 4 Units, i.e. 9 to 12 under Rental Housing Scheme at Kasumpti, Shimla (SH: building portion including WS and SI)" was awarded to the Respondent-Contractor Shri Rajesh Thakur involving a total cost of Rs. 43,15,502. As per the terms of the agreement, the work was to be completed by 29.3.1997, that is, within one year reckoned from 15th day of the date of the award of work. The Respondent started the work on 30.3.1996. It, however, was not completed within the stipulated period of one year. Time for completion of work was extended upto 31.12.2000. At the time of granting the extension the Respondent was specifically called upon to complete the work within the extended period, failing which action as per various terms of the agreement would be taken against him.

(2.) It appears that on a dispute having arisen between the parties, the Respondent on 9.2.2001 sought the reference of the dispute to arbitration in terms of the arbitration clause contained in the agreement. The dispute was accordingly referred to arbitration.

(3.) The Respondent raised various claims before the arbitrator. No counterclaims were raised on behalf of the Petitioner. The arbitrator, on the basis of the material placed before him by the parties, vide his award dated 12.4.2002 awarded a sum of Rs. 12,78,638 along with interest in favour of the re-spondent as under: