Daulat Rai & Sons vs Union Of India
1994 Latest Caselaw 330 Del

JUDGMENT

Vijender Jain, J.

(1) This is a petition filed by the petitioner for making the award a rule of the Court. Respondent-Union of India filed objections under Sections 30 and 33 of the Arbitration Act, inter alia, challenging the award and praying that the award made and published by Arbitrator on 12/12/1990be set aside.

(2) MR.ASHOK Bhasin learned Counsel for the respondent has vehemently argued that the Arbitrator has misconducted the proceedings and there are errors which are apparent on the record. He has also argued that in terms of Clause 25 of the arbitration agreement where the award is more than Rs. 50,000.00, the Arbitrator has to give reasons. Mr. Bhasin has contended that the award is without any reason.

(3) Claim No. 1 is a claim of contractor for a sum of Rs. 2,86,000.00. The Arbitrator has allowed Rs. 1,31,000.00 out of the said claim. Mr.Bhasin has drawn my attention to the heading of claim No. 1 in the award which shows that thecontractor has claimed a sum of Rs. 2,20,000.00 but while discussing the claim The Arbitrator has stated that in statement of claim filed by the petitioner claim No. 1was for Rs. 2,86,000.00. The contention of Mr.Bhasin is that in view of the fact thatthe claimant has only demanded Rs. 2,20,000.00 the Arbitrator has committed a serious irregularity in treating the claim of the petitioner as Rs. 2,86,000.00. This argument of the learned Counsel for the respondent is devoid of any force as from perusing the original statement of claim filed by the claimant the amount is Rs.2,86,000.00. The amount shown in the heading of Claim No. 1 as 2,20,000.00 may be inadvertently shown.

(4) The next contention raised by the learned Counsel for the respondent is thatthe conclusions based by the Arbitrator are without any reason. It is well settled principle of law that when an Arbitrator is an expert Court cannot substitute it sown opinion even if the Court comes to a different opinion. The impugned claim has been thoroughly discussed by the Arbitrator. Award is a reasoned awarded. It is also important to note that once the parties choose the forum of arbitration in exclusion of normal forum of Civil Court the award made by the Arbitrator should not lightly be interfered. It cannot be interfered except in situations which are provided under Sees. 30 and 33 of the Arbitration Act. I see no force in the arguments of learned Counsel for the respondent regarding Claim No. 1.

(5) The other objection raised by the learned Counsel for the respondent is with regard to claim No. 3. Under the heading of claim No. 3, the Arbitrator has cumulatively allowed Rs. 39,000.00. Claim No. 3 is the claim which the contractor has claimed on the following counts:-(a) Reimbursement of extra expenses paid on extra overheads. Rs. 37,500.00.

(6) MR.BHASIN has contended that the award of this amount is bad on twocounts, firstly he says that while awarding a sum of Rs. 1,31,000.00 under claim No.I the Arbitrator has taken into consideration this particular head. Secondly, he says in other words there is an error apparent on the record as amount claimed was Rs.37,500.00 whereas the Arbitrator had allowed Rs. 39,000.00. I feel that there is substance in the argument of learned Counsel for the respondent because in the award under 'overhead' on the one hand the Arbitrator has recorded that the contractor must mitigate some element of increase in price of contract but ultimately has awarded sum of Rs. 39,000.00 to be paid by Union of India to the petitioner. I think the Arbitrator has misconducted the proceedings on this count as far as this part of Claim No. 3 is concerned. I set aside the award made by The Arbitrator under heading 'overhead'.

(7) The rest of the award and the objections raised by the learned Counsel for the respondent are similar which have been dealt with by me in disposing of ClaimNo. 1.

(8) In view of the discussion made above, I make the award a rule of the Court except that in place of a sum of Rs. 2,00,500.00 as awarded by the Arbitrator the award will be to the extent of Rs. 1,65,500.00 on account of my disallowance of the sum of Rs. 39,000.00 under the heading 'overhead' under Claim No. 3(a). Award to this extent is made a rule of the Court. Decree in terms of the award be passed. The petitioner is entitled to interest from the date of the award till realisation at the rate of 12 per cent per annum. The petition is disposed of.