JUDGMENT :

1. This is an appeal under Section 37 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as the ‘Act’) filed by the Union of India through Garrison Engineer AF (hereinafter referred to as the ‘Applicant’) against the order dated January 12, 2012 passed by District Judge, Agra in Arbitration Case No. 406 of 2006 under Section 34 of the Act.

FACTS

2. I have laid down the factual matrix leading to the instant appeal below:

a. M/s Yauk Engineers (hereinafter referred to as the ‘Respondent’) entered into a contract with the Applicant for providing 33KV transformer (Independent Feeder) vide letter dated May 16, 1995 for an amount of Rs.1,00,86,922.26/-. Work was to be completed within 18 months with effect from June 06, 1995. The work order was issued on May 29, 1995. The work was finally completed on August 09, 1997 and completion certificate was issued on August 14, 1997.

b. As per clause 39 and 39.1 of the Contract between the parties and condition 46 of IAFW 2249 General Conditions of Contract (hereinafter referred to as the ‘GCC’), entire installation was deemed to be guaranteed by the Respondent for efficient performance for 12 months from the date of comple