RESURGENT POWER PROJECTS LIMITED Vs. ABB INDIA LIMITED

JUDGEMENT

(1.) The respondent in the Claim Petition is the petitioner in the above petition filed under Section 34 of the Arbitration and Conciliation Act, 1996,(hereinafter called the Act) challenging the award passed by the sole arbitrator in A.F.No.93 of 2015 dated 23.10.2017. It is necessary to briefly allude to the facts preceeding the passing of the award in order to morefully appreciate the grounds on which the respondent before the arbitral tribunal seeks to challenge the award dated 23.10.2017. A preliminary objection has been raised by the Claimant that the petition under Sec.34 is barred by limitation.

(2.) The parties are referred to in the same array as before the arbitral tribunal. The claimant who is a leading global name in power and automation technologies had entered into an agreement with the respondent who is in the field of Design, Engineering, Procurement, Supply, Erection and commissioning of Thermal Power projects, Turnkey execution of Boiler, Turbine island and balance of plants to various customers in India and abroad. The respondent was awarded with the project of Design, Supply, Erection, Testing and commissioning of EBOP package for a 1X40 MW CPP by M/s.ISMT, Pune (end customer) and the respondent in turn had awarded work to the claimant vide their Letter Of Intent, herein after referred to as LOI, dated 27.04.2009 which has been followed by Supply Contract dated 01.07.2009 between the claimant and the respondent.

(3.) The contract price which was fixed at a sum of Rs.10,60,00,000/- under the LOI was later reduced to a sum of Rs.10,18,35,000/- under the Supply Contract. The parties had also agreed that all disputes amongst them would be resolved through arbitration. The agreement further fixed the commencement date as 27.04.2009 and supplies were to be completed within a period of 12 months from the date of LOI and synchronizing of the plant was to be done within 16 months from the date of LOI. The claimant would submit that they had expended considerable time, energy and money towards the fulfilment of their obligations whereafter they had come across several hurdles and none of these could be attributable to the claimant.