GAIL (INDIA) LTD Vs. GUPTA BROS

JUDGEMENT

(1.) GAIL (India) Ltd. (hereinafter 'GAIL') has filed the present petition under sec. 34 of the Arbitration and Conciliation Act, 1996 (hereinafter the 'A&C Act') impugning an arbitral award dtd. 31/7/2018 (hereinafter the 'impugned award') delivered by an Arbitral Tribunal constituted of Justice (Retd.) Aftab Alam, former Judge of the Supreme Court as the Sole Arbitrator (hereinafter the 'Arbitral Tribunal').

(2.) The impugned award was rendered in the context of disputes that have arisen between the parties in connection with a contract for construction of a residential colony for the employees of GAIL who are employed at LPG Recovery Plant at Ghandhar, District Bharuch, Gujarat (hereafter 'the Contract'). GAIL had terminated the Contract alleging that the respondent, M/s Gupta Bros (India), had failed to perform its obligations and complete the work within the stipulated period.

(3.) GAIL had, thereafter, engaged another contractor for completion of the balance work at the risk and costs of the respondent. GAIL claimed that in terms of the Contract, it was entitled to be reimbursed the additional amount paid for completion of the works (the amount spent in excess of the agreed consideration) along with administrative charges at the rate of 10% of the additional amount. Accordingly GAIL claimed a sum of Rs.7,38,10,000.00 on account of balance works executed at the respondent's risk and cost. GAIL recovered part of the amount by encashing the Contract Performance