RITES LTD Vs. AHUWALIA CONTRACT (INDIA) LTD.

JUDGEMENT

(1.) The petitioner assails an Arbitral Award dtd. 20/9/2018, to the extent that the learned Arbitrator has awarded interest on the respondent's claim for recovery against outstanding bills [claim No.3].

(2.) The arbitral proceedings arose out of a contract agreement dated 24. 03.2009 ["the contract"], by which the petitioner - Rites Ltd. ["Rites"], as the constituted attorney of respondent No. 2, Delhi University ["the University"], entrusted respondent No.1 - Ahluwalia Contract (India) Ltd. ["Ahluwalia"], with the task of construction of hostels and flats in the North Campus of the University.

(3.) Before the learned Arbitrator, Ahluwalia was the claimant. Ahluwalia's case before the learned arbitrator was that it raised its final bill of Rs.7,84,66,808.00 on 20/2/2013. Although the bill was certified by Rites on 19/7/2014 for a net payable amount of Rs.2,48,27,105.00, Ahluwalia was paid only Rs.1,02,90,000.00 on 21/7/2014. As payment was made partially and belatedly, it claimed recovery of the balance principal amount of the bill and interest for delayed payment, both on the unpaid amount and the amount already paid.