S.K.Jain, J. - (1.) Heard Sri Umesh Chandra, Senior Advocate assisted by Sri Krishna Chandra for the appellant and Sri Virendra Misra and Sri Manish Mathur, learned Counsel for the respondents.
(2.) The Lucknow Development Authority, Lucknow has preferred this appeal under Section 39 of the Arbitration Act, 1940 against the judgement and order dated 23.5.1995 passed by the 5th Additional Civil Judge, Lucknow by which the objections of the appellant under Section 30/33 of the Arbitration Act, 1940 was rejected and the award dated 31.10.1994 passed by the Arbitrator Sri G.P. Shukla, was made rule of the Court and the respondent shall also be entitled to interest at the rate of 9% per annum on the award.
(3.) The facts giving rise to the civil appeal are as follows : The respondent submitted a tender for construction of multi storeyed residential flats at La-place Lucknow before the appellant and the appellant awarded a contract for the construction of 144 multi storeyed flats vide an agreement dated 16.5.1983. As per the agreement it was agreed between the parties that the payment shall be made above 117% of the Delhi Schedule of Rates, 1981. The steel and cement were to be issued by the Lucknow Development Authority at the rate of Rs. 5000/ - per ton and Rs. 60/- per bag. Clause 57 of the agreement is as under : "In case any dispute or difference shall arise between Lucknow Development Authority and the contractor either during the progress of the work or after completion or after the determination, abandonment or breach of the contract or concerning the work or meaning these presents on the tender, joins, specification or instructions here-in-before referred to as to any other matter or thing arising out of connected with or incidental to the contractor the work to be executed or payment will be made in pursuance thereof then other parties shall forthwith give to the other notice in writing of such dispute or difference and such dispute or difference shall be referred to the sole Arbitration of Chairman, Lucknow Development Authority under Arbitration Act and decision shall be binding on both the parties. The award of said Arbitrator shall be final and binding on the both parties.";