- (1.) The appellants issued a tender for construction of residential quarters at Munderwa District. The value of the contract was Rs.58,59,818.42. The opposite party gave his tender, which was accepted and a contract was executed. The contract was required to be completed within 12 months.
(2.) It is alleged that the claimant started the work, but, within three months the appellants issued a notice terminating the contract. The opposite party issued a notice dated 18.4.1994 claiming an amount of Rs.34,96,259.84 and asked the appellants to appoint an Arbitrator under the contract. The appellants, in accordance with the provision of Clause 34 of the contract, appointed a sole arbitrator, who entered into the reference and gave an award dated 15.7.1997 awarding a sum of Rs.11,05,981/- under various heads along with pendentilite interest @12% per annum from 1.3.1992 to the date of award and the future interest @ 6% per month till the date of payment of decree, which ever was earlier.
(3.) The opposite party, upon receipt of the award, filed an application under Section 17 of the Arbitration Act, 1940, (hereinafter referred to as the "Act") for making the award a Rule of the Court. The said application was numbered as Misc. Case No.128 of 1997. The Court below issued notice to the appellant, which was served on 4.10.1997. The appellants thereafter filed an application purporting to be an application for setting aside the award under Section 30 of the Act, which was numbered as 10-Ga-2 in Misc. Case. No.128 of 1997, praying that the award given by the arbitrator should be set aside. Subsequently, the said application of the appellants was separately registered as Misc. Case No.23 of 2000.;