M.N. Arora vs Delhi Development Authority
1988 Latest Caselaw 83 Del

JUDGMENT

N.C. Kochhar, J.

(1) Mr. M.L. Jain, the learned counsel for the respondent/ D.D A. does not oppose this petition under section 20 of the Arbitration Act in regard to the disputes mentioned in para 5 of the petition except those mentioned in clauses (d), (i) and (j). It is stated that the material lying at the spot for which the claim was being made by the petitioner in clause (d) has already been removed by the petitioner from the spot and as such, no dispute subsists in this regard. This position is accepted by Mr. P.C. Markanda, the learned counsel for the petitioner, who also admits that after- taking joint measurements of the work done by the petitioner, the measurements recorded by the D.D.A. have been accepted as correct by the petitioner. He gives up the claim mentioned in clause (d) of para 5 of the petition.

(2) Mr. Jain states that disputes in regard to the sum of Rs. 15,000.00 claimed by the petitioner on account of counsel fee and expenses in preparation of this ease cannot be said to be a dispute arising out of the contract and cannot be referred to arbitration, and that it would be for the arbitrator to decide whether any costs including counsel fee have to be allowed to the petitioner. Mr. Markanda states that the petitioner would file his statement of claim before the arbitrator and will ask for the counsel fee and expenses and as such the dispute mentioned in clause (i) may not be specifically referred to the arbitrator.

(3) Mr. Jain contends that the claim of interest made in clause (j) of para 5 of the petition does not arise out of the contract between the parties and as such the dispute raised by the petitioner in this regard cannot be referred to the arbitration. It is not disputed that the amounts being claimed by the petitioner are in regard to the work done by him under the contract. If the amounts have not been paid by the respondent to the petitioner, he can certainly make a claim for interest on the said amount and .the dispute regarding the interest would thus be one arising out of the contract and has to be decided by the arbitrator.

(4) Consequently, I allow the petition and direct that the arbitration agreement between the parties be filed in Court. I direct the Engineer Member of the Delhi Development Authority to appoint an arbitrator within a period of two months from today and to refer to him disputes mentioned in clauses (a) to (e), (e) to (h) and (j) of para 5 of the petition.

(5) Suit No. 2062-A of 1987 stands decided accordingly.