MOUSHUMI BHATTACHARYA,J. - (1.) This is an application under section 34 of The Arbitration and Conciliation Act, 1996, for setting aside of an Award dated 31st December, 2005 of a learned Sole Arbitrator whereby several of the claims of the respondent herein were allowed. The Arbitrator was appointed by an order dated 15th May, 1998 and the arbitration spanned over 214 sittings culminating in the impugned Award of December 2005. By the impugned Award, the petitioner, a Government of India enterprise, was made liable for the sums claimed by the respondent and all the three counter-claims of the petitioner were rejected.
(2.) The disputes between the parties arose from a contract between the parties for construction of a steel Hangar inside the Dum Dum airport at Calcutta which was to be completed within 12 months from the date of the letter of acceptance dated 23rd March 1993. The contract was for a sum of Rs. 1,63,98,300/- which according to the petitioner, included the cost for fabrication as well as transporting the materials to the site. The respondent (claimant in the arbitration) filed a Statement of Claim for 18 claims under various heads including a claim for interest together with cost of arbitration out of which 14 claims were allowed, a few in part. The disputes, in a nutshell, constituted the respondent claiming escalation and other costs for the work done beyond the contractual period which according to the respondent was caused on account of the petitioner's failure to supply necessary documents and failing to ensure that the site was made ready for the specific work. The petitioner on the other hand, attributed the delay to the respondent with the additional point that payment for the work done by the respondent was made in accordance with the measurement book maintained by the petitioner and that the additional payment demanded by the respondent was without any basis.
(3.) The award with regard to Claims 1,2,3,4,7,13,14 and 16 amounting to Rs. 10,17,989.15/- have not been challenged and the petitioner has already paid Rs. 26,42,970/- including interest to the respondent on account of those claims in terms of an order dated 17th March, 2010. The relevant part of the said order is set out below: "At the outset Mr. L.K.Chatterjee, learned Advocate appearing on behalf of the petitioner submits that the petitioner is not challenging the award which was made and published on December 31, 2005 in respect of the amount awarded corresponding to Claim Nos.1,2,3,4,7,13,14 and 16. The amount awarded on these claims according to Mr.Chatterjee aggregates to Rs.10,17,989.51 ( Rupees Ten lacs seventeen thousand nine hundred eighty nine and fifty one paise only). The interest element on the aforesaid principal amount from November 27, 1996 till January 31, 2010 2 admittedly comes to Rs.16,09,780.72 ( Rupees Sixteen lacs nine thousand seven hundred eighty and seventy two paise only). Mr.Chatterjee upon instruction submits that his client is ready and willing to pay an aggregate amount of Rs.26,27,770.23(Rupees Twenty six lacs twenty seven thousand seven hundred seventy and twenty three paise only) in full and final settlement in respect of these claims only and that neither of the parties should have any claim or counter claim challenging the award in respect of Claim Nos.1,2,3,4,7,13,14 and 16 along with the accrued interest thereon. ................................................... The contesting parties are on agreement that the petitioner would pay a sum of Rs.26,42,970.34(Rupees Twenty six lacs forty two thousand nine hundred seventy and thirty four paise only ) after making requisite statutory deduction under the Income Tax Act within March 22, 2010 to the respondent. ............................... After making of such payment by the petitioner in favour of M/s. Meumal Athwani and after the respondent receives such payment, both parties will be precluded from challenging the award in respect of the Claim Nos.1,2,3,4,7,13,14 and 16 both on account of principal and/or on account of interest. ..........................." ;