1998 (10) TMI 545

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..... ner. 3. It has been urged for and on behalf of the objector that there is an error apparent on the face of the award inasmuch as the award has not been rendered on merits. The learned arbitrator fell into a grave error by coming to the conclusion that the claim of the petitioner was barred by time. The claimant failed to invoke the arbitration clause within a period of 90 days of the preparation of the final bill as per the conditions of the contract. The learned arbitrator over-looked and ignored the letter dated May 7, 1984 written by the petitioner Ex. C5 wherein the disputes were raised by the petitioner giving rise to the present claim within 90 days of the payment of the final bill which even according to the award is April 16, 1984. .....

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..... concerned with the construction of C1.25 of two agreement, the same can be adverted to with profit. It is in the following words:- "It is also a term of the contract that if the contractor(s) does (do) not make demand of arbitration in respect of any claim (s) in writing within 90 days of the intimation from the Engineer inCharge that the Bill is ready for payment the claim (s) of the contractor (s) will be deemed to have been waived absolutely and the Delhi Development Authority shall be discharged and released of all liabilities under the contract in respect of those (these) claims." 7. Learned counsel for the respondent on the basis of the above clause in the contract has contended that there is nothing wrong with the award .....

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..... rusal of the impugned award reveals that the claims of the petitioner herein were defeated simply on the ground that the invocation of the arbitration clause was barred by time. Consequently the arbitrator did not decide the claims on merit. 11. In the circumstances stated above the petitioner are entitled to succeed. The objections are hereby allowed. The award dated January 7, 1994 is hereby set aside. The arbitrator is hereby directed to decide the claims of the petitioner on merits. In case the arbitrator who rendered the impugned award is not available in that eventuality a new arbitrator would be appointed by the authorities to go into the claims of the petitioner and to render the award within the statutory period.
Case laws, De .....

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