HOTEL LEELAVENTURE LIMITED Vs. AHLUWALIA CONTRACTS (INDIA) LIMITED

JUDGEMENT

(1.) The petitioner has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter "the Act"), inter alia, impugning the arbitral award dated 15.01.2018 (hereafter "the impugned award") delivered by the Arbitral Tribunal constituted of a Sole Arbitrator, namely, Justice Manju Goel (Retired) (hereafter "the Arbitral Tribunal"). The impugned award was rendered in the context of disputes that had arisen between the parties with respect to the Work Order dated 05.05.2008 (hereafter referred to as "the Main Work Order").

(2.) In February, 2008, the petitioner had invited a tender for carrying out the civil and structural construction work of the proposed hotel - "The Hotel Leela" - located at Netaji Nagar, Chanakyapuri, New Delhi. After negotiations with the respondent, a work order dated 20.03.2008 was issued to the respondent for carrying out the work at a value of Rs.78,00,00,000/-. This work order was subsequently revised and a revised work order dated 05.05.2008 ("the Main Work Order") was issued increasing the value of the works from Rs.78,00,00,000/- to Rs.83,00,00,000/- on the basis of the Bill of Quantities (BOQ). Thereafter, on 21.07.2008, the parties entered into a formal agreement for execution of the works at the value of Rs.83,00,00,000/-. The respondent continued to execute the works and in terms of the agreement between the parties, raised interim bills (RA Bills) from time to time. It is stated that in all, the respondents raised 29 RA Bills.

(3.) The petitioner issued four ancillaries work orders dated 17.02010, 30.02010, 01.06.2010 and 12.07.2011 for carrying out certain civil and allied works relating to compound wall; vacuum dewatered flooring; the back house finishing work; and labour contract for dry external cladding work and for civil works at swimming pool respectively. The said ancillary work orders are hereafter referred to as "Ancillary Work Orders".