12/5/22, 3:11 PM Bhartiya Construction Co. vs Chairman, Delhi Development ...

on 8 August, 1997

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Bhartiya Construction Co. vs Chairman, Delhi Development ... on 8 August, 1997

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The arbitrator while awarding damages on account of delay in handing over the site has acted
contrary to the terms of the agreement as, as per the specifications of Cpwd, the contractor was
required to acquaint with the site and study the specifications and conditions carefully before
tendering. It was further agreed that the work will be executed as per the programme approved by the
Engineer in charge, but if a part is not handed over and if there is delay in handing over the part the
programme shall be modified accordingly and the contractor shall not have any claim for extra or
compensation on this account. In view of the said specific provisions in the agreement there was a
clear cut bar in awarding any compensation on account of supplying the site in parts or on account of
any delay in handing over the site and as such by awarding it the arbitrator has acted contrary to the
terms and conditions between the parties and has misconducted himself and the entire proceedings.

Following are the delays which have been brought out by the claimant in his submissions.

1.Delay in handing over site.

2.Delay in drawings and designs.

3.Delay in supply of cement, steel and other materials.

4.Hinderance due to delay in filling earth.

5.Delay in payment.

6.Delay in taking decisions -

A)For the construction of 16 flats, B)In supplying the list of the manufacturers of flush doors.

7.Change in specifications.

8.Delay in taking measurements.

The delays which have been pointed out by the claimant have been carefully examined by me in the
light of the oral and written submissions of both the parties. My findings are as following:-

1.Delay in handing over site: There was delay in handing over of the site by the respondent.
Although the work had been awarded to the claimnt, but the work of pile foundations for these
buildings had not been started and the first block after providing the piles and casting of grade beams
was handed over to the claimant only on 12.09.1982, although the date of start of work was 13.06.82.
Piles of the last block and grade beam were completed and handed over for further work to the
claimant only on 08.12.83. This means about 11 years after the date of start as per the agreement. This
delay was a fundamental breach of the contract and the respondent is responsible for it.

I, hold that there was fundamental breach on the part of the respondent due to the delay in handing
over site and due to the delay in taking decision regarding 16 flats which resulted in stopping work in
4 other blocks. Therefore, the claimant is entitled to increase in rates based on the prevailing rates in

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12/5/22, 3:11 PM Bhartiya Construction Co. vs Chairman, Delhi Development ... on 8 August, 1997

Dec. 83, when the last block was handed over and he is also entitled to rates for the balance work on
01.02.86 of the 16 quarters and of 4 blocks on basis of the prevailing rates in Feb. 1986.

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