UNION OF INDIA Vs. LALI CONSTRUCTION COMPANY

JUDGEMENT

(1.) THESE objections, under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, the Act) are filed by petitioner-objector against the award, dated 29.1.2003, passed by Sh. A.K.Nayak, sole Arbitrator. M/s Lali Construction Company is referred hereinafter as claimant and Union of India/ Bharat Sanchar Nigam as objector.

(2.) THE brief facts of the case are that the claimant in agreement No. 19/EE/TCD/MND/95-96, was awarded contract for construction of Telecomm Training Centre at Sundernagar, District Mandi, for Rs.1,79,97,007/-. The date of start of work was 8.3.1996 and due date of completion was 7.9.1998, thus period for completion of work was 30 months. But work was actually completed on 6.8.1999. The claimant presented final bill which was paid on 18.1.2000. A dispute had arisen between the claimant and the objector, and, therefore, claimant invoked arbitration clause under the agreement for appointment of Arbitrator on 28.3.2000 and accordingly an Arbitrator was appointed to adjudicate the dispute. The claimant put up as many as 15 claims before the Arbitrator, but in the objection petition the objector has assailed award pertaining to claims No. 10, 13 and 14(a) only, which are as follows:-

(3.) THE claimant has alleged that at the instance of objector the claimant had mobilized labour, personnel and machinery, and remained in a state of preparedness to achieve required progress in each month for completion of the work within the agreed time period. On account of defaults and lapses of the objector , the execution period got prolonged by 11 months beyond stipulated date of completion and this caused additional financial burden and losses on various counts, for which the claimant claimed compensation.