- (1.) This is an appeal filed under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act of 1996') read with O.43 R.1 and Section 151, Civil Procedure Code against the judgment dated 05.09.2006 passed by the District Judge, Sri Ganganagar in Misc. Civil Case No.88/2004, whereby application of the appellant under Section 34 of the Act, 1996 was rejected.
(2.) The facts, in brief, giving rise to this appeal are that a dispute came up before the Sole Arbitrator in relation to the contract agreement No.76 of 1995-96 in respect of work "Constructing of various roads, under M.N.P., P.W.D. Division-1, Sri Ganganagar under Package No.SGNR-5 vide order dated 08.05.2000 to adjudicate the dispute between the parties for the above mentioned work. The stipulated dates of commencement and completion were 12.01.1996 and 11.07.1997, and since the work was not completed, the work was rescinded when the work was incomplete under clauses 2 and 3C of the agreement arrived at between the parties. The cost of the work was Rs.55,91,750/-.
(3.) Thereupon, the respondent filed civil suit for permanent injunction bearing No.39/2004. In this civil suit, the respondent-firm took a plea that since the mining work at Ranadhisar Mine was stopped, and, therefore, the construction material could not be obtained, and, therefore, the work could not be completed. It was further stated therein that the Executive Engineer, vide his letters dated 10.01.1997 and 05.02.1997, imposed a penalty of 1% and 2% on each work. Thereafter, the performance guarantee amounting to Rs.2,80,000/- was forfeited and the recovery of incomplete work for a sum of Rs.1,75,204/- was initiated, and a notice in this respect was given to the respondentfirm. The relief for this amount of Rs.4,02,000/- along with interest @ 18% was sought by the respondent in the civil suit.;