- (1.) This order of mine shall dispose of two FAOs bearing No.3942 and 3943 of 2016 filed at the instance of the Union of India. The former first appeal is filed against the dismissal of the objections filed at their instance under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter called as the "1996 Act") and for setting aside of the Award pronounced on 11.07.2011 and the latter one is against the allowing of the objection of the contractor for setting aside the Award dated 24.05.2007.
(2.) Before adverting to the rival contentions of learned counsel for the parties, it would be apt to give a brief pre-face of the matter. The contract bearing No.CECHZ-12 was allotted to the respondent-contractor for construction of officers mess, single officers quarters, servant quarters, workshop, garage and road etc. at Patiala. The contract was a Lump Sum Contract for a total sum of Rs. 4,85,69,117.97. The last date for receipt of the tender was 28.07.1994. The period for completion of Phase-I was 9 months and for Phase-II was 24 months. The date of commencement of work as per work order No.1 was 20.10.1994 and the date of completion of work as per work order No.1 for Phase-I & Phase-II was 19.07.1995 and 19.10.1996 respectively.
(3.) It is conceded position on record that in March, 1995, the MES authorities changed the site in consultation with DG, Civil Aviation to avoid air funnel area and the contractor stated to have written many letters regarding the failure on the part of the MES authorities. Show cause notices were issued to the contractor for slow work on 31.05.1996, 5.11.1996 and finally on 21.01.997, the contract was cancelled by the MES authorities.;