UNION OF INDIA Vs. BANCO CONSTRUCTION

JUDGEMENT

(1.) The instant Misc. Appeal filed u/S. 37 of the Arbitration and Conciliation Act , 1996 (1996 for the brevity) assails the order dated 10/5/2002 passed in Civil Misc. Case No. 19/00 by the 6 th Additional District Judge, Gwalior (M.P.) refusing to set aside the arbitral Award dated 31/7/2000 passed by the sole arbitrator (Shri G.S.Mehta CSW) allowing certain claims of the respondent- contractor in respect of the works contract of construction of "married accommodation for JCOs/HAVs/ORs for "X" and "Y" Bde and armed Regt. at Gwalior" which commenced on 9/12/1988 and was to terminate by 8/8/1990.

(2.) The said work was completed by 31/10/1999 (extended agreed date) and the final bill was paid on 4/3/1995. As per Clause 66 of the Agreement, period of 6 months was agreed to between the parties for making of payment for the work done. Thus, since the final bill was cleared much later than 6 months, an application was moved for appointment of Arbitrator in 1998 which led to Arbitrator being appointed on 22/7/1998 for conduction of arbitral proceedings leading to rendering of the award on 31/7/2000 allowing certain claims of the contractor- respondent including grant of interest w.e.f. 1/7/1992 (6 months after expiry of completion of the work deeming it to be the date on which the cause of action arose).

(3.) Learned counsel for the rival parties are heard.