MINISTRY OF YOUTH AFFAIRS Vs. SWISS TIMING LTD

JUDGEMENT

(1.) The appellant is aggrieved by the judgment dated 25.07.2019, passed by the learned Single Judge, dismissing a petition filed by it under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'A & C Act'), assailing an Arbitral Award dated 21.06.2017, passed by an Arbitral Tribunal, comprising of three retired Judges of the Supreme Court.

(2.) The dispute between the parties was in relation to Timing, Scoring and Results System Services Agreement dated 11.03.2010, executed between the Organizing Committee, Commonwealth Games, 2010, Delhi that was subsequently transferred to the appellant/Ministry, by virtue of a Resolution dated 04.07.2017 and the respondent, Swiss Timing Ltd. (in short, 'STL'). In accordance with the terms and conditions of the Agreement dated 11.03.2010, the appellant was required to pay a sum of CHF 24,990,000 to the respondent/STL. On 15.07.2010, the appellant paid 95% value of the said contract to the respondent. When the respondent/STL raised an invoice dated 27.10.2010, demanding release of CHF 1,249,500 towards the balance payment of 5% and the predecessor-in-interest of the appellant claimed a set off for the said amount against counter claims raised against the respondent, disputes arose between them. As a result, the respondent/STL invoked the arbitration clause governing the parties, which has resulted in the Arbitral Award dated 21.06.2017.

(3.) Before the Arbitral Tribunal, the respondent/STL claimed the balance 5% payment from the appellant and in addition thereto, raised a claim for a sum of Rs.15 lakhs, towards refund of the earnest money deposit and damages on account of loss of reputation. The predecessor-in-interest of the appellant/Ministry had also filed three counter claims on the following heads:-