JUDGEMENT
Vipin Sanghi, J. -
(1.)This is an appeal against the judgment of the learned Single Judge
dated 16th March, 2006 dismissing the objections preferred by the
appellant/Delhi Development Authority (for short 'DDA') to the award dated
1st August, 1992 passed by a Sole Arbitrator in favour of the
respondent/Contractor.
(2.)The respondent/contractors M/s. Sunder Lal Khatri & Sons were
awarded the contract for construction of 192 LIG Houses at Shalimar Bagh,
Block No. A, Pocket-J vide Agreement No. 4/EE/DDV/80-81. The work was
to be completed by 8th May, 1981 but the same could not be completed even
till the end of 1984. Ultimately, 'the contract was rescinded by the
appellant/DDA on 1st December, 1984. The DDA also imposed penalty
under clause 2 of the contract in January 1985. The respondent/contractor
invoked the arbitration clause raising five claims, of which Claims No. 4 and
5 are relevant and read as follows:-
"Claim No. 4: Rs. 15,00,000/- towards damages as the work could not
be completed within the contract period of account of alleged failure on
the part of respondents.
Claim No. 5: Interest @ 18% pendentelite."
(3.)The appellant had also raised various counter claims, of which
Counter Claim No. 1 alone is relevant and the same reads as follows:-
"Counter Claim No. 1: Rs. 1,90,436/- levied as compensation under
clause 2 of the agreement."
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