UNION OF INDIA THROUGH CHIEF ENGINEER Vs. M/S MADAN MOHAN JAIN
LAWS(RAJ)-2019-1-30
HIGH COURT OF RAJASTHAN (AT: JODHPUR)
Decided on January 17,2019

Union Of India Through Chief Engineer Appellant
VERSUS
M/S Madan Mohan Jain Respondents

JUDGEMENT

P.K.LOHRA, J. - (1.) By the instant appeal, under section 37 of the Arbitration and Conciliation Act, 1996 (for short, 'Act'), appellant has challenged order dated 24th of August, 2016, passed by the Addl. District Judge No.3, Jodhpur Metropolitan, Jodhpur (for short 'learned Court below'). By the impugned order, learned Court below has disallowed the application of appellant-applicant-nonpetitioner under Section 34 of the Act (Union of India v. M/s. Madan Mohan Jain and Sons and Anr.) and rejected the objections raised therein.
(2.) The facts, leading to the present misc. appeal, in nutshell, are that a contract was executed between respondent-contractor and the appellant Union of India in respect of extension of runway and the date of completion of work was upto 24.11.2006 but the work was completed at very slow speed on 26.08.2008 and final bill was paid on 26.09.2009 and the same is accepted with demure by the contractor. Later on, the contractor claimed payment as per rates prevailing at the time of completion of work and raised other disputes as such the matter was referred to the arbitrator. The sole Arbitrator after hearing both the sides, passed award dated 27.02.2012 against the appellant Union of India by partly allowing claim of the respondent-contractor. The Arbitrator while partly allowing the Claims No.1, 2, 3, 8, 13, 14 and 16 of the respondent-contractor awarded pendente-lite simple interest @10% per annum to be reckoned from 26th May, 2009. Further, the Arbitrator allowed appellant Union of India three months' time to pay the award amount on or before 30th May, 2012 else the amount shall carry simple interest @12% per annum from 1st June 2012 and there shall be no future interest on the awarded amount and pendent-lite interest as per clause (a) of Para 166 of the award.
(3.) Feeling dismayed with the award of the Arbitral Tribunal, appellant Union of India submitted application under Section 34 of the Act before learned Court below. In its application, assailing the arbitral award on various grounds, Union of India craved for setting aside the same on the anvil of grounds available under Section 34 of the Act. The application is contested by the respondent-contractor by submitting a brief reply. The application submitted on behalf of appellant Union of India did not find favour of the learned Court below and thus entailed its rejection by the impugned order.;


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