VALMIKI J. MEHTA, J

CM No. 27241/2017 (for exemption)

Exemption allowed subject to all just exceptions.

CM stands disposed of.

FAO No. 325/2017

1. This first appeal under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’) impugns the judgment of the court below dated 05.04.2017, whereby the objections filed by the appellant under Section 34 of the Act have been dismissed and the Award dated 04.02.2016 of the arbitration tribunal upheld.

2. By the Award, the respondent has been allowed to forfeit the security deposit/performance guarantee which is the only aspect which is argued before this Court.

3. The facts of the case are that a contract was entered into between the appellant/contractor and the respondent for a sum of Rs.67.62 lacs dated 20.11.2012 which was to commence on 04.12.2012 allowing six months time for completion of removal of obstructions in the bed of NG drain like steel girders/RCC pipe, dumped malba, building rubbish etc. and protection work on both sides bank on the Mall Road bridge.

4. Appellant commenced the work but abandoned the work on account of heavy seepage which could not be overcome despite dewatering operat