NTPC LIMITED Vs. V.U. SEEMON

JUDGEMENT

(1.) IN these proceedings, the appellant, National Thermal Power Ltd (hereafter NTPC), is aggrieved by the judgment and order dated 07.08.2009 of a learned Single Judge of this Court in CS (OS) 1393 - A/1999, CS (OS) 1444 -A/1999 and I.A. 9932/1999. The impugned judgment rejected NTPC's challenge to an award, preferred under Sections 30 and 33 of the Arbitration Act, 1940 (hereinafter referred to as "the Act").

(2.) THE brief facts are that on 25.05.1987, NTPC accepted the bid of M/s V.U. Seemon (the Respondent, hereafter "the Contractor" or the "claimant") dated 20.12.1986, made through their Telex Award dated 07.05.1987 and awarded the contract for the construction of boundary wall and fencing package for Kawas Gas Power Project. The scheduled completion of the entire work was 06.05.1988. An extension of six and a half months however was granted to the Contractor. Later, alleging non -completion as on 21.04.1989, a notice was given by NTPC requiring completion of the balance work by 15.05.1989, failing which it threatened to award the balance work to another agency at the risk and cost of the Contractor. On 19.06.1989, NTPC terminated the contract, in terms of Clause 41 of the General Conditions of Contract for Civil Works ("GCC"). At that time, work worth only Rs.77 lakhs was done, out of which Rs.75 lakhs were paid, as opposed to the total contract value of Rs.1,07,31,580/ -. Thereafter, expenditure of Rs.42,62,705/ - incurred by NTPC in completing the balance work by another contractor was claimed from the Contractor, due to which the latter issued notice invoking arbitration as on 07.12.1989. The Contractor approached this Court under Section 20 of the Act for appointment of Arbitrator. NTPC had, on its own, appointed Sh. P.C. Nag (hereinafter referred to as the 'Arbitrator). The' arbitral proceedings initiated in 1991 continued till 1999 and the award was made in favor of the Contractor on 03.05.1999.

(3.) THE Single Judge disagreed with the submissions made by the NTPC on the issue of misconduct on the part of the Arbitrator either with respect to his personal conduct or his conduct in law. It was further stated that the Court did not find the Award to be contrary to law.