M/S. BEHL ASSOCIATES Vs. UNION OF INDIA

JUDGEMENT

(1.) The subject objections have been filed by defendant nos.1 to 3 (respondent nos.1 to 3) under Sections 30 and 33 of the Arbitration Act, 1940 thereby impugning the Award passed by the Arbitrator dated 10.03.2014. The operative portion of this Award reads as under: -

(2.) The impugned Award was passed with respect to disputes which arose between the parties pursuant to the Work Order dated 07.07.1988 issued by the respondent no.2 upon the plaintiff (herein referred to as petitioner). By the Work Order two contracts were awarded to the petitioner for fabrication and erection of 13 Steel 'OP' Towers and 27 Steel 'OP' Towers to be installed at the site of the respondent no.2 at Sri Ganganagar, Rajasthan. The total price fixed for the first contract of 13 Towers was Rs.13,40,534/ - and for the second contract of 27 Towers was Rs.17,05,912/ -. This Work Order was followed by the formal Agreement between the parties signed on 14.7.1988, however thereafter on 10.8.1988, a Corrigendum was issued by the respondent no.2 amending the number of towers under the first contract from 13 to 32 and in the second contract from 27 to 40. Though the number of towers increased, the quantity of steel remained more or less the same and therefore there was no change in the value of the two contracts. Earlier an Award was passed by an Arbitrator in this case on 11.1.2001 by which all the claims of the present petitioner were dismissed, except Claim nos.4 and 5 which pertained to freight and octroi charges on account of set of 12 numbers of towers being supplied by the petitioner to the respondent no.2 not at Ganganagar but at Jaisalmer in Rajasthan, and which part of the Award has become final as the petitioner has been paid the freight and octroi charges under the first Award dated 11.1.2001. When the earlier Award dated 11.1.2001 was sustained with respect to Claim nos.4 and 5, the same however set aside the Award with respect to other claims of the petitioner which were dismissed. Remanding the matter to the arbitration resulted in the second arbitration proceedings which has led to the impugned Award dated 10.3.2014 whereby the petitioner has been awarded certain claims as stated above.

(3.) Before this Court, the following issues were argued by the parties: -