1. By this order, I shall dispose of CS (OS) No.2343/2007 for making Rule of the Court, the Award passed by Brigadier V.K. Sawhney (Retd). Sole Arbitrator dated October 31, 2007 in dispute between the parties and the objections filed by the defendant to the said Award. The dispute between the parties relate to a work for construction of Housing Complex at Village Gangerwa, Bulandshahar, U.P which was awarded by the defendant to the plaintiff. The Letter of Intent was dated December 4, 2001. The total cost of the work was for Rs.200 Lacs and the time of completion was 15 months. The date of commencement was CS (OS) 2343/2007 Page 1 of 66 to be reckoned from January 10, 1992 and the date of completion as April 1993. As noted from the Award, the LOI stipulates escalation of prices would be paid as per clause 10 CC of CPWD; 75% secured advance would be paid against material brought at site of work. It is also noted that a bank guarantee at 5% of the total contract value was to be tendered by the plaintiff to the defendant. Para 5 of the LOI stipulates, that a copy of the agreement signed by the defendant with the Architect namely M/s S.D. Sharma & Associates, was binding on the contract as well. A formal agreement dated December 5, 1991 was executed between the parties. The plaintiff raised claims vide letter dated August 7, 1995, which was also in the nature of serving notice for arbitration.
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