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1983 Supreme(Del) 229

High Court Of Delhi
DELHI DEVELOPMENT AUTHORITY - Appellant
Versus
BHAGAT CONSTRUCTION COMPANY PRIVATE LIMITED - Respondent
Decided On : 08/08/1983

An arbitrator cannot grant relief for matters already provided for or contrary to the contract, as that would exceed their powers.

Headnote:

ARBITRATION - AWARD - CHALLENGE - GROUNDS - AWARD GRANTING RELIEF WITH REGARD TO MATTERS ALREADY PROVIDED FOR BY THE CONTRACT OR CONTRARY TO THE CONTRACT - BEYOND THE POWERS OF THE ARBITRATOR.

Fact of the Case:

A dispute arose from a contract for constructing dwelling units in New Delhi, leading to arbitration. The arbitrator awarded a sum in favor of the contractor. The Delhi Development Authority objected to the award, particularly regarding claims for wax polishing, ball valve difference, steel reinforcement short payment, and steel reinforcement weight difference.

Finding of the Court:

The court examined the award, objections, and contract provisions. It found that the arbitrator had not granted relief for matters already provided for or contrary to the contract.

Issues: Whether the arbitrator had granted relief for matters already provided for or contrary to the contract, exceeding their powers.

Ratio Decidendi: The court held that the arbitrator had not erred in granting relief for wax polishing, ball valve difference, and steel reinforcement short payment. The contract provided for payment for rubbing and polishing floors to a granolithic finish, and wax polishing was an extra item not covered by the contract. The contract specified the use of ISI-marked supplies, but also specifically required the supply of sanifix cisterns, making the arbitrator's decision on the ball valve difference a matter of contract construction. The claim for steel reinforcement short payment was partially allowed, as the arbitrator had to determine the proper method of computing payment in the absence of actual weighment.

Final Decision: The court affirmed the judgment of the Single Judge and dismissed the appeal, holding that there was no legal defect in the arbitrator's conclusion.

D. K. Kapur, J.

( 1 ) -AS a result of a contract for constructing 448 dwelling units in the Middle Income Group at Malvia Nagar, New Delhi, some disputes had arisen which were referred to arbitration. By an award dated 27th April, 1977, Shri J. K. Bhatte, Superintending Engineer awarded a sum of Rs. 1,48,145. 00 in favour of the contractor. This award was filed in Court and the Delhi Development Authority filed objection, to the same; particularly, to the decision regarding claims Non. 3,5,15,16 and 17.

( 2 ) THE objections and the award were considered in Suit No. 394- A/77 on the Original Side of this Court. R. N. Aggarwal, J. , rejected the objections holding that there was no error of law on the face of the award nor was there any legal misconduct on the part of the arbitrator in making the award. So, the award was made a rule of the Court. Reliance was placed on the judgment of M/s Alien Berry and Co. Pvt. Ltd. v. The Union of India, A. I. R. 1971 S. G. 696, and N. Chdlappan v. Secretary, Kerala State Electricity Board and another, A. I. R. 1975, S. C. 230.

( 3 ) THE present appeal is directed against the learned Single Judge decision. We have examined the award, the objections and a great deal of material relating to the five claims appearing on the arbitration record. We are well aware that an award which does not give reasons is not easily capable of being set aside, but the objection, were such that it was conceivable that the arbitrator had given an award in a case where payment was already provided for under the original contract. We were of the view that though the arbitrator is the final arbiter or Judge both on law and facts, if the award grants relief with regard to matters already provided for by the contract or contrary to the contract, that would be beyond the powers of the arbitrator.

( 4 ) FR this point of view, we have critically examined the five claims mentioned above as made before the arbitrator and the replies or the defence of the Delhi Development Authority. We have also examined the relevant provisions of the contract with the express purpose of determining whether the arbitrator has granted a relief which could not be granted under the contract and for no other reason.

( 5 ) THE five claims arc-a claim for wax polishing in regard to which a ium of Rs. 6,640. 00 was awarded; a claim of Rs. 5,325. 00 towards difference in cost of ISI ball valve and sanifix ball valve, in regard to which a sum of Rs. 3,692. 00 was awarded; a claim for short payment in respect of steel reinforcement against which a sum of Rs. l,726. 00 was awarded; a claim for Rs. 61,506. 00 towards short payment in respect of steel reinforcement due to a difference between actual and theoretical weight of steel against which a sum of Rs. 20,693. 00 was awarded. We have also examined the 5th claim, but nothing need be said about that matter.

( 6 ) AS regards wax polishing, we have found that the contract provided for payment for rubbing and polishing the floors to a granolithis finish. On examining the dictionary meaning of granolithic, we have found it means consisting of cement and granite chips. There was nothing in the contract about wax polishing, so it was extra item which could be awarded under the terms of the contract. The award is, therefore, incapable of challenge on this point.

( 7 ) ON the ISI Ball question, there is no doubt a term that supplies bearing isi mark will be preferred. But, at the same time as far as the cisterns, of which the ball valve is a part, are concerned, there is a specific entry in the contract that sanifix cisterns have to be supplied. It was, therefore, a matter of construction of the contract of which the arbitrator was the final Judge. The award cannot be challenged or set aside in respect of this question also.

( 8 ) AS far as he short payment of steel reinforcement is concerned, the claim was Rs. 17,255. 00 of which only Rs l,726. 00 was awarded. So, it is a comparatively trivial sum conc







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