SUNIL KUMAR Vs. AIRPORTS AUTHORITY OF INDIA

JUDGEMENT

(1.) In this arbitration appeal, the order of a learned Single Judge in OMP 345/2009, to the extent it rejected the Appellant's claim for enhancement of the quantum of compensation contained in an arbitration award, is challenged. The impugned order was made on a petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter "the 1996 Act").

(2.) The Airports Authority of India ("AAI") issued a Notice Inviting Tender (NIT) on 15th November 1998 for removal and disposal of garbage from various designated points inside the operational area and outside the terminal building of the Indira Gandhi International Airport ("IGI Airport"), New Delhi. The Minimum Reserve Price (MRP) indicated was Rs. 1,90,000/-; the period of license was five years. One M/s. Shri Hans Enterprises ("Hans"), proprietary concern of the appellant, bid for the tender offering Rs. 3,13,000/- per month as license fee if the garbage was handed over to it and Rs. 5,35,000/- per month, if entire wet garbage was handed over to it by M/s Taj, Oberoi and Ambassador Flight Kitchens at their premises. A meeting was held between the parties, following which the AAI issued a letter dated 15th March1999, awarding the contract to Hans, stating, inter alia, that Hans would pay AAI a sum of Rs. 5,35,000/- per month as license fee during the first year of the contract, with a further condition that the license fee for the subsequent years would be subject to 10% of the compound escalation.

(3.) Although the contract was awarded to Hans by letter dated 15th March 1999, a formal agreement was executed only on 8th July 1999.