The Ld. Arbitrator's jurisdiction to consider the claims and counter claims, and the finding that the dispute raised by the respondent was arbitrable, were central legal points established in the judgment.

ORDER

Krishna Rao, J. - This is an application under Section 34 of the Arbitration & Conciliation Act, 1996 for setting aside the award passed by the Ld. Sole Arbitrator dt. 24.11.2012.

2. On 16.06.2008, the petitioner had published a tender notice for renovation and interior design works at Bishnupur Tourist Lodge, Bishnupur, District - Bankura. The respondent had participated in the said tender process and accordingly on the recommendation of Project Management Consultant (PMC), the respondent was empanelled to participate in the Price Bid by depositing 2 % earnest money. After negotiation with the respondent, the petitioner accepted the rate quoted by the respondent and awarded the said work to the respondent. As per the tender, the stipulated date of commencement of the work was 17.07.2008 and time for completion of the work was 180 days. The date of completion was 13.01.2009 and the actual date of completion was 20.12.2008.

3. During the execution of the work, the respondent on instructions from the petitioner executed various extra item works total amounting to Rs. 2,06,95,041.24/- After considerable delay for making the payment, the petitioner agreed to pay a sum of Rs. 84,15,886.94/- on the condition that the respondent should give an undertaking indicating that the respondent will not make any further claim. The respondent had submitted and undertaking dt. 13.07.2009 in which it is mentioned that the respondent will have no further claim beyond the amount of Rs. 84,15,886.94/- and after submission of the undertaking the petitioner has paid an amount of Rs. 80,17,981.00/- out of the total amount of Rs. 84,15,886.94/-.

4. On 07.12.2009, the respondent has made request to the petitioner for release of the bill amount and again on 25.01.2010, the respondent had requested for release of amount in favour of the respondent and when the petitioner has not released the amount, the respondent had invoked the provision of Arbitration and Conciliation Act, 1996 for appointment of Arbitrator and accordingly by the order of this Court the Ld. Sole Arbitrator was appointed.

5. The respondent has filed the statement of claim before the Ld. Sole Arbitrator claiming altogether seven claims which are as follows:-

SCHEDULE OF CLAIM

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6. The petitioner while filing the statement of defence against the claim made by the respondent have claimed the following amount by way of counter claim:-

SCHEDULE OF CLAIM

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7. The Ld. Sole Arbitrator had passed an award on 24.11.2012 by allowing the following claim of the respondent and had rejected the counter claim made by the petitioner:-

Sl. No. of the Claim Amount Awarded

1. CLAIM NO. 1 - Rs. 3,28,617.75

2. CLAIMM NO. 2 - Rs. 56,22,507.51

3. CLAIM NO. 3 - Rejected.

4. CLAIM NO. 4 - Rejected.

5. CLAIM NO. 5 - Rs. 4,00,900.00

6. CLAIM NO. 6 - i) Interest @ 12% p.a. on the Amount of Award from 1st January, 2010 till the Date of this Award.