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Head Note

The Arbitration and Conciliation Act, 1996  - Section 34

Setting aside arbitral award - Respondents awarded work of "extension of terminal building" at Guwahati airport to appellant - Terminated contract on ground of non-completion even after 35 months - Arbitrator awarded a sum of Rs.1,04,58,298/- with interest and costs in favour of appellant - Rejected counter claims of respondents - Challenged - District court dismissed the petition filed by respondents under section 34 - Affirmed - Award passed by Arbitrator - High Court reversed said orders - Appeal - Evidence on record showed - Appellant was not responsible for delay - Respondents were responsible for delay - Once it is held - Contractor was not responsible for delay - Provisions which make the decision of Superintending Engineer or Engineer-in-Charge final and conclusive - Irrelevant - Arbitrator have jurisdiction - Awards on items 2, 4, 6, 7, 8 and 9 - Upheld by civil court - High Court in appeal did not find any infirmity - Judgment of High Court setting aside award - Cannot be sustained - Thus set aside - Findings of arbitrator - Contractor was not responsible for delay - Termination of contract is illegal are not open to challenge - Arbitral award upheld - Impugned order of High Court set aside - District Court restored - appeal allowed.

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