High Court Of Delhi
UTTAM SINGH DUGGAL AND COMPANY PRIVATE LIMITED - Appellant
Versus
UNION OF INDIA - Respondent
Suit 2018A of 1995
Decided On : 03/20/1998
ARBITRATION - AWARD - OBJECTIONS - JURISDICTION - SCOPE - ERROR OF LAW OR FACT - MISCONDUCT - AWARD BASED ON ERRONEOUS LEGAL PRINCIPLE - VALIDITY - INTEREST.
Fact of the Case:
The claimants entered into an Agreement with the respondent Union of India for construction of Main Atheletic Stadium at Lodhi Road. Complex, New Delhi-SH: Structural RCC Framework Group-I vide Agreement No. EE/ci/ag/80-81/1. The disputes and differences arose between the parties and Mr. S. S. Juneja, Arbitrator in the Ministry of Urban Affairs and Employment, New Delhi was appointed by the Chief Engineer (NDZ) I CPWD, New Delhi under his letter No. 4 (32)83-A and C (NDZ) dated July 15, 1991 as Sole Arbitrator to decide and make the Award regarding the disputes falling within the purview of Clause 25 of the Agreement executed between the parties.
Finding of the Court:
The Court held that the Arbitrator has no jurisdiction to address itself to Claim No. 3 with regard to the award of compensation in favour of the claimants as this was a matter within the domain of Engineer-in-charge/superintending Engineer. The Court further held that the objections filed by the respondents are dismissed and the Award dated August 11, 1995 is made Rule of the Court and decree in terms of the same is passed. The petitioners shall also be entitled to interest at the rate of 12 percent per annum from the date of decree till realisation.
Issues: 1. Whether the Arbitrator has jurisdiction to address itself to Claim No. 3 with regard to the award of compensation in favour of the claimants? 2. Whether the objections filed by the respondents are maintainable?
Ratio Decidendi: 1. The Court held that the question of awarding compensation under Clause 2 is outside the purview of the Arbitrator and that the compensation determined under Clause 2 either by the Engineer-incharge or on further reference by the Superintending Engineer will not be capable of being called in question before the Arbitrator. 2. The Court held that the objections filed by the respondents are dismissed and the Award dated August 11, 1995 is made Rule of the Court and decree in terms of the same is passed. The petitioners shall also be entitled to interest at the rate of 12 percent per annum from the date of decree till realisation.
Final Decision: The Court dismissed the objections filed by the respondents and made the Award dated August 11, 1995 Rule of the Court and passed a decree in terms of the same. The petitioners were also entitled to interest at the rate of 12 percent per annum from the date of decree till realisation.
( 1 ) THIS judgment will dispose of the objections filed by the respondent Union of India under Sections 16,30 and 33 of the Arbitration Act, 1940 against the Award dated August 11,1995.
( 2 ) THE brief facts of the case are that the claimants entered into an Agreement with the respondent Union of India for construction of Main Atheletic Stadium at Lodhi Road. Complex, New Delhi-SH: Structural RCC Framework Group-I vide Agreement No. EE/ci/ag/80-81/1. The disputes and differences arose between the parties and Mr. S. S. Juneja, Arbitrator in the Ministry of Urban Affairs and Employment, New Delhi was appointed by the Chief Engineer (NDZ) I CPWD, New Delhi under his letter No. 4 (32)83-A and C (NDZ) dated July 15, 1991 as Sole Arbitrator to decide and make the Award regarding the disputes falling within the purview of Clause 25 of the Agreement executed between the parties. The claimants filed the statement of claims containing 14 claims and the respondents filed the counter statement of facts alongwith three counter-claims while repudiating the contentions raised in the claims statement.
( 3 ) THE learned Counsel for the respondents has only impugned the findings in respect of the Award for claims 1,2,3,8 and 13. Awards in respect of Claims 6 and 7 were not challenged and Claims 4 and 5 were not pressed at the time of arguments and, therefore, it will not be necessary to deal with the same:
( 4 ) CLAIM No. 1 : Claim for a sum of Rs. 30,000. . 00 for shifting of steel on three occasions including segregating of fabricated steel, sorting of steel section wise, loading into vehicle, transport by mechanical means, unloading at the new fabrication yard and stacking.
THE learned Arbitrator considered on the available evidence on record and heard arguments advanced by the parties and came to the conclusion that the claimants were entitled to reasonable compensation. The Award was made on the basis of filing of vouchers by the claimants showing rates of carriage @ Rs. 10. 00 per Metric Tonne and a sum of Rs. 20,000. 00 was awarded in favour of the claimants. The learned Counsel for the respondents has not been able to give cogent grounds to assail the findings in respect of this claim and indeed no fault can be found as the evidence on record was examined and an award was made on that basis.
CLAIM No. 2 : Claim for a sum of Rs. l,50,000. 00 on account of shifting of hutments and stores platform and form work for fabrication of inclined beam and equipment including tower crane due to vacation of allotted site for construction of roads, parks etc.
IN respect of this claim the learned Arbitrator held as follows : "i have considered all the available evidence on record and arguments advanced by parties. I find that respondents have neither denied shifting of hutments nor details of quantification and costs given by claimants as per their Annexure-1. The claimants have given number of huts and details of quantity and cost in Annexure-I. Proof of number of huts involved is not filed by them. Considering the quantum of work and contract amount of Group- 1 @ Rs. 218 lac and 30% as labour element as per contract agreement, I assess minimum number of Huts at 210 Nos. and the cost of shifting @ Rs. 370. 00 works out to Rs. 77,700. 00. Claim for mobilisation of labour is irrelevant to shifting of labour hutments. I award payment of (a) Removal and rebuilding hutments: Rs. 77. 700. 00 (b) Shifting Tower Crane: Rs. 10,000. 00 Rs. 87,700. 00 is,therefore, awarded in favour of claimants against this claim. "the findings in respect of this claim are rendered on appreciation and perusal of evidence on record and it will not be open for this Court to arrive at different conclusions by reappraising evidence and materials as placed before the learned Arbitrator. Claim No. 3: Claim for a sum of Rs. 6,00,000. 00 for additional set of form work necessitated due to alleged delay on the part of the Deptt. in finalisation of design, drawing and de
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