REGIONAL DIRECTOR Vs. SHAJI V.K

JUDGEMENT

(1.) This arbitration appeal is directed against the order dtd. 4/3/2020 in Arbitration Original Petition No.75 of 2019 on the file of the Additional District Court-V, Palakkad. The appellant, hereinafter called "the Corporation ", was the petitioner in the said proceedings. The subject matter of the proceedings was an arbitral award obtained by the respondent, hereinafter called "the Contractor ", in connection with a works contract awarded to him by the Corporation.

(2.) The Corporation entered into a contract on 1/9/2011 with the Contractor for setting up an office for the Corporation at Kozhikode. The work involved in the contract included civil work, partitioning, cabin separation, panelling, supply of modular furniture and kitchen, plumbing, wiring, cabling, air conditioning etc. In terms of the contract, the Contractor was to be paid Rs.49,50,000.00 by the Corporation for the work. While the Contractor asserts that the work has been completed, the Corporation maintains that the work has not been completed. The Contractor, however, concedes that the work has not been completed on time. According to him, the work could not be completed on time due to the delay on the part of the Corporation in handing over the site, due to his inability to obtain permission for using electricity, due to his inability to work during day hours on account of the functioning of courts in the proximity of the site of the work, due to the insistence on the part of the Corporation to do extra works, due to the failure of the Corporation in effecting periodical payments on time etc. It is stated by the Contractor that he completed the work on 3/2/2012 and locked down the site, hoping to hand over the site to the Corporation on 6/2/2012. On 4/2/2012, the Corporation took over the site, after breaking open the lock kept by the Contractor. The Contractor then issued a notice to the Corporation on 8/2/2012, invoking the arbitration clause in the agreement and seeking reference of the disputes for resolution by an Arbitrator. In reply to the said notice, the Corporation issued a communication on 15/2/2012 to the Contractor stating that the work has been deserted by him midway, and calling upon the Contractor to complete the work. Later, on 12/3/2012, the Corporation Issued a notice to the Contractor terminating the contract.

(3.) In the meanwhile, the Contractor moved the District Court, Kozhikode under Sec. 9 of the Arbitration and Conciliation Act, 1996 (the Act) seeking an injunction restraining the Corporation from causing obstruction to the work awarded to him. In the said proceedings, the Court appointed an Advocate Commissioner and a Valuer to assess the value of the work executed by the Contractor and they assessed the value of the work carried out by the Contractor at Rs.58,26,000.00. Though the Advocate Commissioner and the Valuer submitted their report as required by the Court, the proceedings was closed as infructuous later on account of the termination of the contract by the Corporation.