A DAILI Vs. JAWAHARLAL NEHRU UNIVERSITY

JUDGEMENT

(1.) This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') has been filed by the petitioner challenging the Arbitral Award dated 12.10.2015 passed by the Sole Arbitrator adjudicating the disputes that have arisen between the parties in relation to the work of Designing, Installation and Commissioning of two Power Transformers for 220KV Station in two phases on turnkey basis awarded by the petitioner to the respondent.

(2.) The work had been awarded by the petitioner to the respondent under the Letter of Intent dated 12.11.2008 which resulted in two Work Orders and one Purchase Order, all dated 27.11.2008, being placed by the petitioner on the respondent. Thereafter three separate Agreements were executed between the parties on 08.06.2009; one for supply of extension of existing Switchyard Equipment; second for Civil Work of the aforesaid extension and; the third for Erection, Testing and Commissioning of the said extension. The stipulated time for completion of the work was 20.07.2009. It may be noted that this was a sub-contract as the work was to be completed for Maharashtra State Electricity Transmission Company Limited (MSETCL), which had awarded the work of installing a 100 MV Wind Farm in District Satara, Maharashtra to R.S. India Wind Energy Pvt. Ltd. (R.S. India). R.S. India in turn had awarded the work to the petitioner which, in turn, awarded the work to the respondent.

(3.) The respondent claiming that the work had been duly completed as far as the supply of Extension and the Civil Work on 22.02.2010 and with respect to the Commissioning on 27.08.2010, however, as the petitioner had not made payments for the work to the respondent, filed a petition under Section 11 of the Act before this Court being Arb.P. 11/2013. This Court vide order dated 15.05.2014 appointed a Sole Arbitrator who has passed the Impugned Award inter alia granting the following relief in favour of the respondent:-