2010 (10) TMI 1219

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....0/-. ONGC made counter claims aggregating to Rs. 1,24,87,000/-. The arbitrator awarded Rs. 9,50,000/- under the first claim, Rs. 7,80,132/- under the second claim, Rs. 4,77,129/- under fifth claim and several smaller amounts under claims 3, 4, 6 to 13, 15, and 17, in all aggregating to Rs. 25,26,270/-. The arbitrator also awarded 12% pendent lite interest and 6% from the date of the award/decree. The counter claims were rejected. 3. The ONGC challenged the said award by filing a petition under sections 30 and 33 of the Arbitration Act, 1940 ('Act' for short). The civil court (Additional District Judge, Dehradun) dismissed the said petition filed by ONGC and made the award a rule of the court. ONGC filed an appeal before the Uttarakhand H....

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....he fault of both the contractor and ONGC and that both are equally liable for the delay of 19 months. The arbitrator held that as both were equally liable, the contractor was entitled to compensation at the rate of Rs. 1 lakh for a period of 9 ½ months (that is half of the period of delay of 19 months) in all Rs. 950,000/-. The arbitrator has observed that there is no provision in the contract by which the contractor can be estopped from raising a dispute in regard to the said claim. But clause 5A of the contract pertains to extension of time for completion of work and specifically bars any claim for damages. The said clause is extracted below : "In the event of delay by the Engineer-in-Charge to hand over to the contractor ....

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....ract. If he has travelled outside the bounds of the contract, he has acted without jurisdiction. ..." In Rajasthan State Mines & Minerals Ltd. v. Eastern Engineering Enterprises - 1999 (9) SCC 283, this Court held : "The rates agreed were firm, fixed and binding irrespective of any fall or rise in the cost of the work covered by the contract or for any other reason or any ground whatsoever. It is specifically agreed that the contractor will not be entitled or justified in raising any claim or dispute because of increase in cost of expenses on any ground whatsoever. By ignoring the said terms, the arbitrator has travelled beyond his jurisdiction as his existence depends upon the agreement and his function is to act within the lim....