DELHI HIGH COURT
Anil Kumar, Vijender Jain
D. D. A.
v.
BHAGAT CONSTRUCTION CO. PVT. LTD.
FAO (OS) 232/2002 & CM 588/2002,
Decided on : August 4, 2004.
Reasoning - Arbitration - The court upheld the decision of the Arbitrator to grant Rs. 3 lakhs 50 thousand under Claim No. 7, stating that the Arbitrator, although not required to provide detailed reasons, had considered various aspects and based the award on his experience as a former Director General of CPWD.
Fact of the Case:
The appellant appealed the dismissal of their petition, challenging the grant of Rs. 3 lakhs 50 thousand under Claim No. 7 by the Arbitrator, citing lack of reasons provided by the Arbitrator.
Finding of the Court:
The court upheld the impugned order, noting that although no reason was discernible for the figure, the reasons for arriving at such figure by the Arbitrator were discussed in detail by the learned Single Judge.
Issues: The main issue was the lack of reasons provided by the Arbitrator for the grant of Rs. 3 lakhs 50 thousand under Claim No. 7.
Ratio Decidendi: The court held that the Arbitrator, although not required to provide detailed reasons, had indicated the basis on which he arrived at the figure, and the impugned order was found to have no infirmity.
Final Decision: The appeal was dismissed, upholding the impugned order.
VIJENDER JAIN, J. (ORAL)
This appeal has been filed impugning the order passed by the learned Single Judge whereby the petition of the appellant was dismissed on 21.03.2001. Pursuant to an Arbitration clause in the agreement the matter was referred to the Arbitration by appellant and a retired Director General, CPWD was appointed as the Arbitrator. The Arbitrator gave its Award dated 27.11.1990.
Mr. Bhuchar, learned counsel for the appellant has limited his argument on the grant of Rs. 3 lakhs 50 thousand under the Claim No. 7 by the Arbitrator. Said finding of the Arbitrator has been approved in the impugned order passed by the learned Single Judge. The main argument of learned counsel for the appellant is that the Arbitrator has not given any reason for coming to the conclusion that under Claim No. 7 the appellant was to pay a sum of Rs. 3 lakhs 50 thousand. In nutshell the argument of the learned counsel for the appellant is that in the Arbitration clause it was specifically provided that the Arbitrator was to give reasons, non-giving of reasons by the Arbitrator in arriving at the figure of Rs. 3 lakhs 50 thousand has vitiated the Award and, therefore, the finding on that score by the learned Single Judge is to be set aside.
We have perused the impugned order. The learned Single Judge has noted that no reason is discernible for arriving at the figure of Rs. 3 lakhs 50 thousand, however, in the impugned order itself the reasons for arriving at such figure by the Arbitrator has been discussed in detail by learned Single Judge. We may also reproduce the Claim No. 7 and how the Arbitrator arrived at the finding and what were the circumstances which led to the said finding :
"Claim No. 7 : Claim for Rs. 16,50,000 towards reimbursement of increase in market prices after the stipulated date of completion.
The date of start of work was 21.02.1981 and the date of completion as per the agreement was 20.02.1982. According to the claimant the work was completed in January 1984, but according to the respondent the work was never completed. The claimant has claimed damages due to various breaches committed by the respondent. From the hindrance register maintained by the respondent it is seen that there were following hindrance in the work :
S. No. Particulars Period of Hindrance
1. Non-availability of foundation Drgs. 21.02.1981 to 11.04.1981 2. Decision reg. plinth level 21.02.1981 to 22.05.1981 3. Decision about supply of earth filling 13.05.1981 to 13.08.1981 4. Non-availability of structural Drgs. 16.06.1981 to 15.09.1981 5. Supply of SCI pipes 02.06.1981 to 01.01.1982 6. Rectification of work 13.09.1982 to 18.10.1982 7. Short supply of cement 21.02.1981 to 01.05.1983 8. Development works held up of blocks because of not laying cables by DESU 21.02.1982 to 31.12.1983
There was an initial delay in the supply of the foundation drawings to the claimant on 11.04.1981, but the claimant did not make any arrangement for water till 28.05.1981 and the laving of the lean concrete could be started only from 28.05.1981. This shows that there was delay, partly on account of claimant also due to his not making the necessary arrangements. It is also seen that although there was some delay in issue of the structural drawings, but after the structural drawings were issued, the claimant took considerable time in laying the RCC slabs. Also the general progress of the work was slow and the cement register shows that at no stage there was any shortage of cement. The respondent is responsible for the initial delay in the supply of drawings and other decisions, as indicated in the hindrance register and, therefore, the work could not be completed in the stipulated period. The respondent is not responsible for the full delay as alleged by the claimant and I, therefore, hold that the claimant be
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