Mohammad Rafiq, J. - (1.) This appeal has been filed by Rajasthan Housing Board against the award dated 20.1.1996 passed by the Arbitrator and the order dated 30.7.1997 passed by District and Sessions Judge, Jaipur City, Jaipur whereby the aforesaid award dated 20.1.1996 passed by the learned Arbitrator has been made rule of court.
(2.) Facts of the case are that appellant issued a notice inviting tender for construction of flats in Rajasthan Police Academy. The tender of M/s. Ashok Construction Company was accepted and the work order was issued on 1.9.1986. The construction work was satisfactory, however, on 16.6.1987, the payment of the firm was stopped by the Rajasthan Housing Board. There was an agreement between the firm and the Rajasthan Housing Board i.e. agreement No. 44. The work was done by the firm under the direction of the Engineers of Rajasthan Housing Board, but on 16.6.1987, one block of the house in Contract No. 34 was collapsed due to technical mistake of the Rajasthan Housing Board, but its payment has wrongly been stopped on 17.6.1987 and a sum of Rs. 3,92,072.87 and the security amount of Rs. 62,642 is due with the Rajasthan Housing Board, which has not been paid to the firm and it is entitled to the aforesaid amount with 18% per annum interest. On application of the respondent, the learned District Judge appointed Shri Ram Raj Lal Gupta, Advocate as an Arbitrator in the matter. As per clause 28 of the Contract conditions, for the purpose of appointing the Sole Arbitrator referred to above, the Housing Commissioner on receipt of notice from the Contractor sent a penal of three names not below the rank of Superintending Engineer of the Public Works Department, Rajasthan Government who shall all be presently unconnected with the Board's organisation, but the learned District Judge appointed the Arbitrator Shri Ram Raj Lal Gupta, Advocate. The appellant filed reply to the claim petition and denied all the claims of the respondent firm and it was replied that 12 flats in Rajasthan Police Academy premises construction by the firm were collapsed due to inferior/sub standard materials used by the firm and also its negligence. The incident was on 16.6.1997 and the firm run away from the site left the work without any information. The firm has not completed the work of all the sites which were given to it under different tenders. The work which were left by the firm was got completed by another contractor as per the agreement on appellants' risk & cost. Due to collapse of the houses, the Board's goodwill and reputation diminishes, which was irreparable loss to the Board. One labour Smt. Meena also lost her life in the aforesaid incident for which the Board has granted the compensation. It was further replied that the firm ran way and disappeared from long time leaving all the works at all the sites which were allotted to it. An enquiry Committee was also constituted in the matter. The Board is entitled to adjust the loss from the due of the firm and also the Board is entitled to recovery of the sum of Rs. 40,00,000 from the firm.
(3.) The learned Arbitrator framed the six issues and there was no issue regarding the left over work of the firm from all the sites and also losses to the Board and the difference of amount for the work which was got completed from another contractor.;