(1.) Late Shri Shiv Charan Gupta S/o Shri Lal Chand Gupta R/o ward No.8 Udhampur, way back in 1977 bagged a contract for construction of "Married Accommodation for JCOs, Havaldars and other ranks," at Dhar Road, Udhampur. The terms and conditions of the contract were reflected in contract agreement No.CEJK-37/77-78. In addition to the terms and conditions agreed upon, the General Condition of Contract (CCC) IAFW -2249, were to be read as part of the contract entered into by the parties. The contract work was completed on 15.12.1979. The contractor after payment was made, complained that amount on different counts payable to the contractor, was not so paid by the contract awarding authority/officer of Union of India. The contractor in all submitted as many as 19 claims. The Competent Authority, (Lt. Gen -- Engineer-in-Chief on 11.01.1983 appointed Shri K.S Tekchandani, S.E as sole arbitrator and referred the disputes that had arisen between the parties out of the contract in question, to the appointed arbitrator. Shri Tekchandani put in his papers on 6.1.1987 without taking the arbitration proceedings to their logical end. No consequential steps were taken for appointment of a new arbitrator constraining the contractor to approach this Court with arbitration application registered as 243 AA of 1986. The application was disposed of on March 6, 1987 with a direction to the Engineer-in-Chief Army HQs to take steps for appointment of arbitrator. The Court Order prompted the Competent Authority to appoint vide order/ communication dated 2.5.1 991 Shri Brigadier Y. W. Joshi. Brigadier Joshi -- the 2nd arbitrator also has left the job half way. The competent authority finally vide No.13600/NC/89/E8 dated 27.7.1993 appointed Shri MMS Nanda Chief Engineer, as the sole arbitrator to settle the disputes between the parties. Shri Nanda entered upon the reference concluded the arbitration proceedings and made, signed and published award on 29.7.1995. The arbitrator in all allowed 5 of the 19 claims and held the respondents liable to pay the awarded amount on account of the claims allowed alongwith interest @ 18 % p.a on the awarded amount from the date of reference to the date of award. The arbitrator disallowed other 14 claims set up by the respondents.
(2.) The respondents thereafter on 15.9.2005 approached this court with an application under section 14 of the Jammu & Kashmir Arbitration Act 1940 for a direction to the arbitrator to file the award in the Court and with the further prayer to make the award rule of the Court. The application was allowed and the arbitrator directed to filed the award. The award was accordingly filed and registered as AA No.204/1996. The parties filed their objections to the award. The respondents supported the award and asked for it being made rule of the court. The petitioners on the other hand questioned the award on the grounds that the arbitrator had mis-conducted himself and the proceedings and that the arbitrator had traveled beyond his powers by awarding interest in favour of the respondents.
(3.) The Court on 1.8.2000 upon perusal of the pleadings settled the following issues: