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2006 DIGILAW 134 (DEL)

ANANT RAJ AGENCIES v. DDA

2006-01-19

SANJAY KISHAN KAUL

body2006
SANJAY KISHAN KAUL, J. ( 1 ) THE plaintiff, a partnership firm was awarded the work of construction of 1096 MIG dwelling houses in Pocket D and E, Sector 15, Rohini, Delhi and 256 mig houses in Pocket E-2 as per the Agreement No. 3/ee/rpd-V/dda/85-86. Disputes arose between the parties and in view of Arbitration Clause 25, the matter was referred to the adjudication of the Sole Arbitration of Shri C. Bannerjee by the engineer Member DDA in terms of letter dated 20. 1. 1994. The Arbitrator made and published his award dated 11. 11. 1997. The DDA aggrieved by the same filed the objections. ( 2 ) LEARNED counsel for the plaintiff pointed out that similar disputes arose between the parties where the matter was referred to the Sole Arbitration and same objections were filed. The objections were dismissed and the award was made Rule of the Court in terms of he judgement dated 24. 1. 2001 in Suit no. 2580/1991 titled M/s. Anant Raj Agencies Vs. DDA and Anr. ( 3 ) THERE is no doubt that each case has to be decided on its own facts. However, if the nature of objections are same and a view is taken by the Court on those objections between the same parties in respect of another contract, it cannot be said that the same would have no bearing on the present case. ( 4 ) THE proceedings under Section 30 of the said Act are not in the nature of an appeal and the scrutiny of the Court is confined to the parameters of the said Section. This Court does not sit as a Court of Appeal. It is not for this court to interfere with an award merely on the basis that this Court would have come to a different conclusion in view of the material made available before the arbitrator. In the absence of an award being absurd reasonableness is not a matter to be considered by the Court as an appraisement of evidence by the arbitrator is not ordinarily a matter for the Court. In this behalf reference may be made to the judgement of the Apex Court in Food Corporation of India Vs. Joginder Pal Mohinder Pal and Another 1989 (2) SCC 347 and a judgement of the division Bench of this Court in DDA Vs. Bhagat Construction Company and Anr. In this behalf reference may be made to the judgement of the Apex Court in Food Corporation of India Vs. Joginder Pal Mohinder Pal and Another 1989 (2) SCC 347 and a judgement of the division Bench of this Court in DDA Vs. Bhagat Construction Company and Anr. 2004 (3) Arbitration Law Reporter 481. ( 5 ) THE respondent has raised an objection on the issue of interpretation of item 6. 1 of the Agreement. This aspect has been considered in M/s. Anant Raj agencies (supra ). Similarly challenge was laid to item No. 22, item No. 3. 11 and clause No. 12. It is these very items or their interpretation, which has been considered in the case of Anant Raj Agencies (supra ). ( 6 ) LEARNED counsel for the respondent has examined the matter and cannot seriously dispute the proposition that all the principles applicable in the said case would also apply to the facts of the present case. ( 7 ) THE last aspect is on the issue of interest awarded at 18 per cent per annum from 1. 3. 1997 on the sum of Rs. 10,47,640/ -. Learned counsel urges that the interest is on the higher side. Not only that the award also states in case the amount is not paid within 60 days the interest shall also enure in future on the pendentalite interest awarded by the Arbitrator. ( 8 ) LEARNED counsel for the petitioner states that the claim for interest is confined @ 12 per cent per annum on the sum of Rs. 10,47,640/- from 1. 3. 1997 till the date of decree. ( 9 ) THE application accordingly stands disposed of. CS (OS) No. 2581/1997 1. In view of the objections being disposed of, the award dated 11. 11. 1997 by Arbitrator, Mr. C. Bannerjee, is made Rule of the Court with the modifications that the interest shall be chargeable @ 12 per cent simple interest from 1. 3. 1997 till date of decree on Rs. 10,47,640/ -. The petitioner shall also be entitled to future interest from the date of decree till the date of realisation @ 9 per cent simple interest. In case the amount is paid within 60 days from today, the respondent shall not be liable to pay future interest. Decree sheet shall be drawn up accordingly.