{"id":209711,"date":"2001-11-07T00:00:00","date_gmt":"2001-11-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/anil-kumar-soni-vs-union-of-india-uoi-and-ors-on-7-november-2001"},"modified":"2016-10-08T15:01:54","modified_gmt":"2016-10-08T09:31:54","slug":"anil-kumar-soni-vs-union-of-india-uoi-and-ors-on-7-november-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/anil-kumar-soni-vs-union-of-india-uoi-and-ors-on-7-november-2001","title":{"rendered":"Anil Kumar Soni vs Union Of India (Uoi) And Ors. on 7 November, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Anil Kumar Soni vs Union Of India (Uoi) And Ors. on 7 November, 2001<\/div>\n<div class=\"doc_author\">Author: A Sikri<\/div>\n<div class=\"doc_bench\">Bench: A Sikri<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> A.K. Sikri, J.  <\/p>\n<p> 1.  Some disputes arose between the petitioner and<br \/>\nthe respondents which were referred to Brig. T.K. Mittal<br \/>\nappointed as sole arbitrator. The learned Arbitrator<br \/>\nentered upon reference. After receiving the claims and<br \/>\ncounter-claims of the parties and adjudicated upon the<br \/>\nsame he made and published his award dated 18th<br \/>\nNovember, 1999. The petitioner, thereafter, filed<br \/>\napplication under Sections 14 and 17 of the Arbitration<br \/>\nAct, 1940 (for short &#8216;Act&#8217;) for making the aforesaid<br \/>\naward as rule of the court which was registered as Suit<br \/>\nNo. 2833 of 1999 and the arbitrator was directed to file<br \/>\nthe award. On arbitrator&#8217;s filing the award, notice<br \/>\nthereof was issued to both the parties. The<br \/>\nrespondents filed objections to this award under<br \/>\nSection 30 and 33 of the Act which are registered as IA<br \/>\nNo. 8909\/2000.\n<\/p>\n<p> 2. Mr. Sameer Aggarwal, learned counsel appearing<br \/>\nfor the respondents pressed objections in respect of<br \/>\nthe award on claims No. 2, 4, 5, 8, 12 and 14.\n<\/p>\n<p> 3. In so far as claim No. 2 is concerned, this<br \/>\nclaim was made by the petitioner on account of<br \/>\nlosses\/damages caused due to non-handing over of the<br \/>\nsites in dust free condition as technically required<br \/>\nand due to delay in completion of the building by the<br \/>\nother agency. The arbitrator has awarded this claim to<br \/>\nthe extent of Rs. 2 lacs holding that non-handing over<br \/>\nof unencumbered sites is established, and therefore,<br \/>\nthe petitioner is entitled to compensation. It is<br \/>\nfurther stated that the contention of the respondents<br \/>\nto the effect that Clause 11(C) forbds any<br \/>\ncompensation is not correct as that is applicable to<br \/>\nreasons covered by Clauses 11(A) &amp; (B). Learned<br \/>\ncounsel for the respondents submitted that by awarding<br \/>\nthe aforesaid claim, the arbitrator has acted contrary<br \/>\nto the provisions of Clause 11 (C) inasmuch as the site<br \/>\nwas not handed over due to the fact that other agency<br \/>\nwas constructing the building, and therefore, delay was<br \/>\nin completion of the building. This is admitted by the<br \/>\npetitioner himself and the claim is founded on this<br \/>\nbasis. In these circumstances, it was the submission<br \/>\nof learned counsel for the respondents, that Clause<br \/>\n11(A)(vi) gets attracted which reads as under :<br \/>\n  &#8220;that by reasons of delay on the part of<br \/>\nthe contractors or tradesman engaged by<br \/>\nGovernment in executing works not forming<br \/>\npart of the contract.&#8221;\n<\/p>\n<p> 4. The submission of the learned counsel for the<br \/>\nrespondents is formidable. The arbitrator has simply<br \/>\nstated that this case is not covered by Clauses 11 (A)<br \/>\n&amp; (B) without giving any further reason as to how it is<br \/>\nno so covered, particularly in the face of Clause<br \/>\n11(A)(vi) which specifically stipulates that the reason<br \/>\nfor delay on the part of the tradesman engaged by<br \/>\nGovernment in executing works not forming part of the<br \/>\ncontract. This is when the delay in handing over of<br \/>\nthe site was on account of delay in completion of the<br \/>\nbuilding by other agency. As admitted by the<br \/>\npetitioner himself, the case is clearly covered by<br \/>\nClause 11(A)(vi)  and in these circumstances, Clause<br \/>\n11(C) forbids any compensation payable on this account.<br \/>\nThe judgment cited by the learned counsel for the<br \/>\nrespondent, nemely,  <a href=\"\/doc\/1033537\/\">Union of India vs. M\/s Om<br \/>\nConstruction Company<\/a> reported in 1997 (2) PLR 92 is<br \/>\nclearly attracted on the facts of this case. That was<br \/>\nalso a case were the court was interpreting the same<br \/>\nclauses of the contract and it was held that in view of<br \/>\nClause 11(C) no such claim was payable. It may be<br \/>\nmentioned that same view was taken by the Punjab &amp;<br \/>\nHaryana High Court after referring to various judgments<br \/>\nof the Supreme Court as per which the arbitrator is<br \/>\nbound by the provisions of the contract. The award in<br \/>\nrespect of claim No. 2 is therefore not sustainable and<br \/>\nis accordingly set aside.\n<\/p>\n<p> 5. In so far claim No. 4 is concerned, it was on<br \/>\naccount of extra expenditure caused by MES due to<br \/>\nwithholding the issue of completion certificate. For<br \/>\nsame reasons, as mentioned in respect of claim No. 2,<br \/>\nthis claim is also not maintainable as the arbitrator<br \/>\nhimself recorded that the contractor was denied<br \/>\nelectricity and water in addition to some systems to be<br \/>\ncompleted by the third agency which had not been<br \/>\ncompleted. Award on this claim is also set aside.\n<\/p>\n<p> 6. As far as claim No. 5 is concerned, the<br \/>\narbitrator has granted interest at the rate of 12 per<br \/>\ncent per annum for delayed payment of running bills<br \/>\ni.e. RARs. The arbitrator has mentioned that the<br \/>\npayments were to be made within thirty days which he<br \/>\nconsidered as reasonable period. As the payments were<br \/>\ndelayed, interest at the rate of 12 per cent per annum<br \/>\nfor delayed payments is allowed. It was submitted by<br \/>\nlearned counsel for the respondents that nowhere in the<br \/>\ncontract it is provided that the payment is to be made<br \/>\nwithin fifteen days. This was countered by learned<br \/>\ncounsel for the petitioner by referring to Clause 64 of<br \/>\nthe contract as per which the running bills were to be<br \/>\nsubmitted at intervals of not less than thirty days.<br \/>\nHis submission was that when the next bill becomes due<br \/>\nafter thirty days, it is expected that the payment of<br \/>\nthe last bill would be released before that, and<br \/>\ntherefore, the arbitrator was justified in inferring<br \/>\nthat the fifteen days period within which the payment<br \/>\nis to be made, is reasonable. This view drawn by the<br \/>\narbitrator based on Clause 64 of the contract is a<br \/>\npossible one, and therefore, this court would not<br \/>\nsubstitute it&#8217;s own view even if the other view is<br \/>\npossible. Thus, I do not find any merit in this<br \/>\nobjection and is rejected.\n<\/p>\n<p> 7. Claim No. 8 is again on account of payment of<br \/>\ninterest on delayed payment against RARs. and final<br \/>\nbill. The objection of the learned counsel for the<br \/>\nrespondents was two-folds:\n<\/p>\n<p> a. On delayed payment interest has already<br \/>\nbeen awarded under claim No. 5 which records that the<br \/>\ninterest is on account of &#8216;all the RARs&#8217;.\n<\/p>\n<p> b. In so far as interest on final bill is<br \/>\nconcerned, it was submitted that as per Clause 66, the<br \/>\npayment was to be made within six months. Final bill<br \/>\nwas signed by the petitioner on 12th September, 1991<br \/>\nand the payment was made on 18th March, 1992 i.e.<br \/>\nwithin six months and therefore, no interest was<br \/>\npayable. In view of these objections, the learned<br \/>\ncounsel for the petitioner conceded the position and<br \/>\nsubmitted that he had no objection if the award on this<br \/>\naccount is set aside. Accordingly, award of interest<br \/>\nagainst claim No. 8 is set aside.\n<\/p>\n<p> 8. Against claim No. 12, the arbitrator has<br \/>\nawarded Rs. 20,000\/- which was recovered by the<br \/>\nrespondents on account of alleged defects. As per<br \/>\nClause 44 of the contract, if there are any defects,<br \/>\nthe respondents were permitted to make the recoveries<br \/>\nand get the defects removed at the risk and cost of the<br \/>\ncontractor. However, the respondents could not show as<br \/>\nto any such amount was spent, after making the<br \/>\nrecoveries, at the risk and cost of the petitioner and<br \/>\nit is for this reason, the arbitrator awarded this<br \/>\nclaim. I do not find anything in awarding any such<br \/>\nclaim as during the course of arguments also, learned<br \/>\ncounsel was not able to substantiate as to how the<br \/>\narbitrator was wrong in observing that the petitioner<br \/>\ncould not prove the disposal of this money.\n<\/p>\n<p> 9. Against claim No. 14, interest is awarded by<br \/>\nthe arbitrator in respect of claims 1 to 13 less claims<br \/>\n2, 5 &amp; 8. This objection of the respondents was only<br \/>\nin respect of interest on claim No. 4. Since claim No. 4<br \/>\nitself is set aside, no interest thereon is payable.\n<\/p>\n<p> 10. The award as modified above is made rule of<br \/>\nthe court. Decree shall follow. The arbitrator shall<br \/>\nalso be entitled to interest at the rate of 12 per cent<br \/>\nper annum from the date of decree till payment.\n<\/p>\n<p> 11. Suit and IA stand disposed of.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Anil Kumar Soni vs Union Of India (Uoi) And Ors. on 7 November, 2001 Author: A Sikri Bench: A Sikri JUDGMENT A.K. Sikri, J. 1. Some disputes arose between the petitioner and the respondents which were referred to Brig. T.K. Mittal appointed as sole arbitrator. The learned Arbitrator entered upon reference. After [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-209711","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Anil Kumar Soni vs Union Of India (Uoi) And Ors. on 7 November, 2001 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/anil-kumar-soni-vs-union-of-india-uoi-and-ors-on-7-november-2001\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Anil Kumar Soni vs Union Of India (Uoi) And Ors. on 7 November, 2001 - Free Judgements of Supreme Court &amp; 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