State Of Arunachal Pradesh vs M/S. Damani Construction

Leave granted in both the Special Leave Petitions.

Brief facts which are necessary for disposal of this appeal are that the respondent herein entered into a contract agreement bearing No.DD/03 of 1992-93 with the State of Arunachal Pradesh in Public Works Department for executing the contractual work of construction of road bridges. The value of the work in question although was initially fixed at Rs.77.43 lakhs but on the basis of the post tender negotiation by and between the parties, the price of the work was re-fixed at Rs.1.15 crores. The work was to be completed within two calendar years from the date of commencement of the work. The work commenced on 10.4.1993 and it was completed in March, 1999. According to the petitioner-respondent herein the delay in execution of the work was due to deviation from the original scope of work and several obstructions and difficulties including delay in approval of the design and drawings and also in making payment against running accounts bills from time to time. The respondent herein raised bill for the contractual work which according to the respondent was refused to be paid due to certain arbitrary and untenable reasons. Such refusal gave rise to a dispute and accordingly, need arose for arbitration. The respondent then approached the Court under section 11(6) of the Act which was numbered and registered as Arbitration Case No.21 of 2000 and the same was disposed of by the High Court appointing an arbitrator to adjudicate the dispute between the parties. One arbitrator was appointed on 18.10.2001 but subsequently that arbitrator was changed by the present arbitrator. On 12.10.2003 the arbitrator passed an interim award awarding Rs.65,52,878/- with simple interest to be calculated if the award amount was not paid within 60 days from the date of the award. However, the period of limitation prescribed under Section 34 (3) of the Act for setting aside the award expired in the meantime. The appellant then wrote a letter to the arbitrator for review of the award and also sought clarification in respect of the award on 2.4.2004. On 10.4.2004 the arbitrator by his letter stated that he had no jurisdiction to entertain the request for review of the award and also informed that the award dated 12.10.2003 was in fact a final award pertaining to the issues involved. On 21.6.2004 the respondent- petitioner filed an application for execution of the interim award dated 12.10.2003 before the Deputy Commissioner. On 6.8.2004 the appellant filed an application under Section 34 of the Act for setting aside the award dated 12.10.2003 together with an application under Section 5 of the Limitation Act read with Section 34(3) of the Act for condonation of delay in filing the application for setting aside the award. The said application was entertained and was fixed for hearing on condonation of delay after 15 days. Aggrieved against this order, a writ petition was filed by the respondent herein but the same was disposed of by the High Court with the observation that as the matter was pending before the court below it would not be appropriate to interfere at this stage and left the Deputy Commissioner to decide the matter. The Deputy Commissioner, Papum Pare, Itanagar by the impugned order dated 15.9.2004 decided the application condoning the delay in preferring the application under Section 34 of the Act by the appellant. Aggrieved against this order, the present writ petition was filed by the respondent herein. It is the legality of this order which was challenged before the High Court. Learned Single Judge of the High Court after hearing both the parties came to the conclusion that the order passed by the Deputy Commissioner in condoning the delay was not correct and it took the view that under section 34 of the Act, there was a delay of seven months from the date of first order and a delay of six months from the date of second order.

Thus, in this background, the view taken by learned Single Judge appears to be justified and there is no ground to interfere in this appeal. Consequently, there is no merit in both the appeals and the same are dismissed with no order as to costs.