Law:

Section:

This award for Rs.4,86,128 in favour of the plaintiff is given by M/s. (Retd.) Major Rifatullah Khawaja and Mr. Hassan Siddiqui who were appointed as arbitrators by the plaintiff and defendant respectively in terms of arbitration agreement read with order passed in J.M. No. 19/81 by the High Court of Sindh. The said sum of Rs.4,86,128 is arrived at after adjustment of Rs.53,662.50 awarded to the defendant towards their counter-claim against the plaintiff.   Briefly the facts of the case are that the plaintiff being lowest tenderer were awarded work of construction of Federal Government Hostel at the campus of the University of Karachi through written agreement dated 30-5-1979 at a cost of Rs.27,60,342. The said construction work was to be completed within 12 months. This work, however, could not be completed within time but was completed within the next five months being the agreed extended period.   Before the Arbitratiors, the plaintiffs had lodged a claim for Rs.28,43,592 and the defendants filed a counter claim for Rs.19,62,355.50 the details whereof are as follows:--   "PLAINTIFF'S CLAIM:   (1) Balance of cost of work done Rs.9,87,918 (2) Escalation in prices Rs.8,86,976 (3) Interest at 14% . Rs.9,18,698 (4) Costs of proceedings Rs. 50,000 Total. Rs.28,43,592   DEFENDANT'S COUNTER-CLAIM:   (1) Defects in work got removed Rs. 53,802.50 (2) Liquidated damages. Rs.18,08,553.00 (3) Costs of proceedings Rs.1,00,000.00 Total Rs.19,62,355.50   The plaintiff lodged their claim on 19-11-1983 and the defendant filed their counter claim/written statement on 5-12-1983 and the proceedings continued till 7-10-1984 for about 10-1/2 months. The plaintiffs have not filed any objection to the award but the defendant in their application under sections 30 and 33 of the Arbitration Act while praying for setting aside/modification of the award have raised the following objections:-   That the proceedings before the arbitrators continued for 10-1/2 months. In the said proceedings the arbitrators were requested vide application filed on 7-1-1984 to frame issues arising from the assertions and denials of the parties and to…