STATE OF RAJASTHAN Vs. ASHOK KUMAR CONTRACTOR

JUDGEMENT

(1.) APPELLANT , State of Rajasthan, has laid this appeal under Section 37 of the Arbitration & Conciliation Act, 1996 (for short, 'Act of 1996') for assailing the order dated 7th October, 2013 passed by the District Judge, Bikaner, whereby application of the appellant under Section 34 of the Act of 1996 for setting aside the arbitral award dated 25th August, 2006 is rejected.

(2.) BRIEF facts of the case are that the appellant, State of Rajasthan issued a notice inviting tender for supplying 20 lacs tiles and 1 lac bricks. The contract was awarded in favour of respondent No. 1 for supplying the aforesaid articles and in this behalf an agreement bearing No. 56 for the year 1993 -94 has been entered into between the appellant and respondent No. 1. As per the terms and conditions of the contract, the date was fixed for commencing the work as 21st November, 1993 and the date for completion of the work was fixed as 20th October, 1994. As respondent No. 1 did not complete the work within the stipulated time, appellant informed the respondent No. 1 that appropriate proceedings will be initiated against it as per Clause 12(B) and 15(B) of the agreement. The respondent -contractor, vide letter 17th April, 2001 made a request for appointing a sole arbitrator as per Clause 19 of the Agreement and thereafter matter was referred to sole arbitrator, Mr. P.K. Govil, Superintending Engineer for resolving the dispute between the parties vide letter dated 27th March, 2002 issued by Chief Engineer, IGNP, Bikaner. Before the Arbitrator, the respondent -contractor submitted statement of claim on 17th December, 2002 and claimed a sum of Rs. 38,04,918/ - including the amount of interest on delayed payment. The appellant also filed counter claim on 16th April, 2003 and prayed that a sum of Rs. 13,38,909/ - is due against respondent -contractor, which is recoverable.

(3.) ON conclusion of arbitral proceedings, the sole arbitrator passed award on 25th August, 2006. Upon consideration of the materials available on record, the arbitrator declared respondent entitled for the claim of Rs. 16,15,546/ - and also awarded interest @ 8% per annum w.e.f. 20.07.1997 upto date of award on due amount and further @ 7% from the date of award till the date of realization, if the appellant fails to make payment within four months from the date of award.