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VIVEK SINGH THAKUR
Executive Engineer, I & PH, Division, Bilaspur, H. P. Z – Appellant
Versus
Ramesh Khaneja, Govt. Contractor – Respondent
JUDGMENT :
Vivek Singh Thakur, J.
This petition has been preferred by the State, through Executive Engineer, I&PH Division, Bilaspur, H.P., under Section 34 of the Arbitration and Conciliation Act, 1996 for setting aside the award dated 05.04.2016, passed by S.E. Arbitration, Solan, whereby the Arbitrator has awarded Rs. 57,45,832/- in favour of the respondent for escalation of price against claimed amount of Rs.61,74,863/-.
2. The respondent was awarded work of construction of LWSS Shri Naina Devi Ji including execution and supply of material vide award dated 30.07.2009. Work was to be completed within one year, i.e. upto 13.08.2010.
3. For non-execution of work, department intended to forfeit the performance bond of the petitioner, whereupon, respondent had approached the High Court, whereafter, order for appointment of Arbitrator was passed on 28.12.2010, and vide order dated 22.06.2011, Arbitrator was appointed and arbitration proceedings were started.
4. Respondent had put-forth his claim on six counts, i.e. (1) Escalation (2) General (3) 15th Final Bill (4) Prolongation (5) Performance Bond and (6) Litigation Expenses.
5. On conclusion of arbitration proceedings, the Arbitrator has
Nature of award is more or less is a consent award, based on admitted facts with respect to handing over partial site and delay in handing over complete site causing non-completion of work within sti....
The court upheld the arbitrator's award, affirming that delays were attributable to the petitioner, justifying the respondent's claims for additional expenses.
Point of Law : None of the objections as raised, fell within the purview of Section 34 of the Act and therefore, the award impugned did not deserve any interference.
An arbitrator's award may be upheld if it conforms to contract terms, despite challenges regarding procedural compliance or interpretation, provided it does not contravene public policy.
Arbitration Agreement – Award -Scope of interference by the courts into the award is quite limited. A court considering an application under Section 30 of the Act neither sits in appeal over an award....
A party cannot introduce new objections in an appeal that were not previously raised during arbitration proceedings.
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