ITALIAN THAI DEVELOPMENT Vs. NTPC LTD

JUDGEMENT

(1.) Petitioner, by way of present application filed under Sec. 36(3) of the Arbitration and Conciliation Act (hereafter, referred to as 'A&C Act'), seeks unconditional stay of the arbitral award dtd. 16/3/2022 whereby it has been asked to refund a sum of Rs.1,69,43,54,488.00 to the respondent.

(2.) Facts relevant for consideration of the captioned application are that disputes arose between the parties in the context of work relating to contract for Main Civil Works Package-1: Dam, Spillway and Power Intake of Kol Dam Hydro Electric Project located in Bilaspur District. The disputes were referred to the Arbitral Tribunal resulting in passing of the impugned award.

(3.) The Petitioner raised a claim for Rs.3,66,34,27,582.45 but was awarded only a sum of Rs.1,30,23,45,512.00. However, the said sum was directed to be set off against the sum of Rs.299.67 Crores paid to the petitioner by the respondent towards advance. Since the sum awarded to the petitioner is less than the advance in its possession, the Arbitral Tribunal directed refund of the excess advance of Rs.1,69,43,54,488.00 by the petitioner to the respondent. The petitioner has challenged the said set off and refund awarded by the Arbitral Tribunal by filing objections under Sec. 34 alleging that the Arbitral Tribunal travelled outside the limits of reference in granting the refund when no specific relief of set off was claimed by the respondent from the Arbitral Tribunal in its statement of defense.