After going through Clause H, Special Conditions of Contract, I am satisfied that the appellant being the owner of the site was required to file the application for obtaining completion certificate: Delhi High Court
FAO 271/2019 & CM. APPL. 31033/2019
MAHANAGAR TELEPHONE NIGAM LTD. vs M/S RALHAN CONSTRUCTION COMPANY
The current appeal was filed under Section 37(1)(b) of the Arbitration & Conciliation Act, 1996. The appellant has assailed order of 16.04.2019 passed by the learned ADJ-07, South-East, Saket Courts, New Delhi in Arb. No. 212/2018, where objections under Section 34 (Application for setting aside arbitral awards. ) of the Arbitration Act to Award of 09.05.2018 were dismissed. Appeal before the HON’BLE MR. JUSTICE MANOJ KUMAR OHRI.
The learned counsel for the appellant restricted her challenge only to respondent’s claim Nos. 2 and 3, which were in relation to release of balance payment of security deposit lying with the Department, directed to be released to the respondent through the Award.
FACTS OF THE CASE
The appellant had floated a tender on 20.11.2007 for the civil and electrical portion of construction of Automobile Workshop-cum-Administrative building at Rohini, Sector-VI, Delhi.
The mentioned work was awarded to the respondent for a consideration amount of Rs. 18,68,11,252/-. The stipulated time for completion of the work was 18 months from the date of issuance of letter of award. The civil component of the work was completed on 31.12.2011 and the electrical part was completed on 07.06.2013.
A dispute arose between the parties with respect to the payments under the agreement, hence the respondent decided to initiate arbitration proceedings in terms of Clause 53. The matter was adjudicated by a Sole Arbitrator, who passed an Award on 09.05.2018, allowing all claims of the respondent either partially or fully, except claim Nos. 18 and 20. Subsequently, two amendments on11.05.2018 and 12.05.2018 were made to the Award by the Arbitrator.
The appellant filed its objections under Section 34 of the Arbitration Act before the learned District and Sessions Judge, West, Saket Courts, praying that the Award of 09.05.2018 and the subsequent amendments made on 11.05.2018 and 12.05.2018 be set aside. These objections were dismissed through the order dated 16.04.2019.
The Learned counsel appearing for the appellant contended that the Arbitrator erred in interpreting Clause H, Special Conditions of Contract in the Agreement between the parties to conclude that it was the appellant’s responsibility to file application for obtaining completion/occupancy certificate from local authorities.
The Council further contended that the Arbitrator has also erred in relying upon the ‘Hand Book of Building Permit Procedure 2006, Delhi Development Authority’, because this was not executed by the parties and was an extraneous document filed by the respondent. The learned counsel also contended that the Arbitrator had misconducted himself by carrying out the proceedings in a biased and hasty manner.
The learned counsel for the respondent, defended the arbitral Award as well as the impugned order by contending that it was the duty of the architect engaged by the appellant to apply for the completion certificate. The council to support her contention made reference to an agreement executed between the appellant and the architect namely M/s. R.K. & Associates. It was submitted that the said agreement was executed in relation to the work order and the respondent’s obligation was to make efforts and co-ordinate after the appellant had filed the application for obtaining the completion certificate.
JUDGEMENT
The HON’BLE Court after going through the Clause H, Special Conditions of Contract stated that the appellant being the owner of the site was required to file the application for obtaining completion certificate.
The Court stated that the Award of 09.05.2018 was not vitiated by any error of fact or law on the face of the record, and that the Arbitrator did not misconduct himself within the meaning of the Arbitration Act.
The Court found no ground to interfere with the Award and/or the impugned order which was made out. Thus dismissing the appeal with the pending application.
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JUDGEMENT REVIEWED BY ADITYA G S.
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