Arbitration Award

In the matter of arbitration under the bye-laws, Rules and Regulations of Arbitration
and Conciliation Act, 1986
A.M.No.1/2017
Between
M/s. DECK & Co.--------------- Applicant
And
M/s. ABDEAVAU & Co.----- Respondent
Appearances:
For the applicant: Mr. Lal, Authorised Representative on behalf of M/s. DECK & Co.
For the Respondent: Mr. Pal, Authorised Representative of M/s. ANDEAVAU & Co.
Statement of Facts:
On 12/04/2014, the appellants awarded a work contract to the respondents for
construction of commercial complex at Kukatpally, Hyderabad.
On 13/04/2014, the respondent entered into a sub-contract with M/s. ABC
Constructions for carry out the entire project.
As per the agreement, the project should have been completed by April 2016.
However, there was a delay of six months in completion.
On 22/09/2016, the respondent issued a notice claiming compensation for the
delay as per the terms of the agreementof termination of the agreement, inter
alia, on the ground of delay in performing the work under the agreement. The
settlement talks between the parties failed and the respondent invoked
arbitration clause. A sole arbitrator was appointed by the parties. Before the
arbitrator, the respondent filed a statement of claim and claimed relief.
The appellant encountered soft soil at site so, shed down the slop and this happen
due to lack of awareness of unanticipated soil condition. Arbitrator listen both parties
and after 8 days gave award and held that the appellant was not entitled to additional
compensation or a time extension under the differing site conditions clause because
the appellant had failed to establish the conditions at the site were "an unknown
physical condition, were of an unusual nature, or that conditions differed materially
from those ordinarily encountered.
Statement of Defence:

The appellant had failed to establish the conditions at the site were "an unknown
physical condition, were of an unusual nature, or that conditions differed materially
from those ordinarily encountered.
Details of Hearing:
The matter was heard on 15/04/2017, 16/05/2017 and 20/06/2017
When the initial hearing was fixed on 15/04/2017, Authorised representative of the
appellant appeared and explained the contents of the arbitration application with
reference to the supporting documents. The said representative was asked to produce
the following documents:
(a) Details of Bills issued to the respondent
(b) Details of calculation of amount of work order
(c) Copies of contract and related statements
(d) How orders were placed by the client and proof thereof receipt by the client
(e) Copy of the clients account with the applicant for the relevant period
The respondent failed to appear for the hearing and no information whatsoever was
received for not being present. It was verified from the records that the letter of
intimation of hearing has been duly delivered to the respondent. Still, a final chance
was given to the respondent to appear on the next date of hearing to make his
representation, if any, in the interest of justice. It was also made clear that there will
be no granting any further adjournment. The next hearing was fixed on 16/05/2017.
The representative of the respondent appeared for hearing on 16/05/2017 and
submitted that there is no change in circumstances of soil from the date of agreement
with the appellant till date and the appellant is well aware of the soil nature and
accordingly he has arrived at the value of the project. To know the facts, the following
documents were asked to submit to the arbitrator by 20/06/2017.
(a) Copy of the agreement
(b) Soil report obtained from the chemical examiner
(c) Details of amount paid
Documents Submitted:
Applicant:
(a) Arbitration Application
(b) Agreement
(c) Client Accounts
(d) Profit & Loss Account
(e) Bank Statement copy
Respondent:
(a) Arbitration Application
(b) Agreement
(c) Client Accounts
(d) Profit & Loss Account
(e) Bank Statement copy
Findings: