P. Kalaiyarasan, J. - (1.) This Original Side Appeal is directed against the Order of the learned single Judge, dated 07.08.2008 made in O.P.No.46 of 2004 wherein the Award passed by the learned Arbitrator has been set aside under Section 34 of the Arbitration and Conciliation Act, 1996.
(2.) The facts leading to the present appeal in nutshell are as follows : (i) The work of construction of Revetment from North of sand screen up to southern side pillar was entrusted to the appellant herein by the work order, dated 09.02.1993 by the respondent-Port Trust. An agreement was entered into on 29.09.1993. The contract was for a period of two years and the total estimate of the work was Rs.2,52,02,915/-. The project of constructing the site revetment requires placing of armour stones (Heavy stone weighing 2 to 3 tonnes and above). The total quantity of armour stones required was about 46,500 tonnes. The quantity available in TAMIN quarry was only 15,000 tonnes. (ii) The appellant/contractor could not succeed in getting the necessary stones. This led to a delayed execution and total completion cost after lapse of 5 years comes to Rs.1,60,60,294.41/- The delayed execution led to cost escalation resulting in claims under different heads, viz., (i) transportation; (ii) retrieval of armour stones near F.C.I Godown; (iii) escalation due to longer period of the contract; (iv) payment of idle time charges; (v) loss due to rough monsoon and cyclonic seasons for five years instead of two years; (vi) loss due to overheads for extra period of two years; (vii) loss due to corrosion of machinery and equipment due to proximity of the seashore for a longer period of three years; (viii) loss due to excess interest on mobilisation advance over a longer period and (ix) interest on the amounts as per the above claims.
(3.) The learned Arbitrator pointing out the difficulties meted out by the contractor in acquiring armour stone and all other aspects, awarded Rs.1,70,00,000/- under the above said claims excepting the claim No.5-monsoon and claim No.7-corrosion of machinery. Aggrieved by the said Award, Port-Trust filed Original Petition under Section 34 of the Arbitration and Conciliation Act, 1996.;