AIRPORT AUTHORITY OF INDIA THROUGH ITS DIRECTOR MR ARVIND DUBEY JAI PRAKASH NARAYAN INTERNATIONAL AIRPORT PATNA Vs. RAMAKANT SINGH SON OF LATE RAM KHELAWAN SINGH

JUDGEMENT

(1.) THE appeal is directed against the order dated 28th of October, 2010 passed by the Subordinate Judge-I, Patna in Misc. Case No.41 of 2006 dismissing the miscellaneous case filed by the appellant under section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as `the Act') for setting aside the arbitral award dated 27th of August, 2006 passed by the sole Arbitrator, who was appointed by the nominated Judge of the Hon'ble the Chief Justice, High Court of Judicature at Patna in Request Case No.16 of 2004.

(2.) THE short facts are that an agreement was entered into between the appellant-Airport Authority of India and the respondent-Contractor with respect to the construction of shoulders, widening of turning pad and construction of perimeter road at Jai Prakash Narain International Airport, Patna. As per the terms of the contract, a period of six months was allowed for completion of the above work. However, since the work was not being completed within the aforesaid period of six months, the contract was rescinded. THEreafter the Contractor approached this Court through a writ petition vide CWJC No.7226 of 2003, which was disposed of on 12.12.2003, whereby one month's further time was allowed for completion of the aforesaid work. THE appellant-Airport Authority of India preferred an appeal, vide L.P.A. No.30 of 2004, which was disposed of by order dated 31st of March, 2004. However, the dispute between the parties could not be sorted out and thereafter the Contractor filed a Request Case No.16 of 2004 for appointment of the Arbitrator in terms of the arbitration agreement between the parties. THE nominated Judge of the High Court of Judicature at Patna appointed the Arbitrator as per the order dated 4th of May, 2005. Before the Arbitrator, the parties placed their respective cases. During the arbitration proceedings, the petition of the Contractor was to the effect that the machines and equipment as required in connection with the aforesaid works were being retained by the Airport Authority and the same were not being released even for its maintenance.THE Arbitrator accordingly as per the interim award directed for release of the aforesaid equipment. THE same having not been done, further award by way of interim award amounting to Rs.1,19,34,240/- was given. THE Airport Authority against the aforesaid interim award filed Miscellaneous Case No.6 of 2006 in the court of the Subordinate Judge-I, Patna. However, during the pendency of the case, the arbitration proceedings continued and ultimately final award was given by the Arbitrator on 27th of August, 2006 incorporating the interim award as well to the tune of Rs.2,00,61,726/-. THE said award was sought to be set aside on a petition under section 34 of the Act filed on behalf of the Airport Authority of India, as noticed above. THE same, on contest, being rejected, the present appeal is preferred.