ONGC, CAUVERY ASSET Vs. STEEL AND GRIP

JUDGEMENT

(1.) This appeal has been filed under sec. 37 of the Arbitration and Conciliation Act, challenging the order dtd. 3/6/2019 passed by the learned District Judge, Karaikal under sec. 34 of the Arbitration and Conciliation Act in A.O.P.No.1 of 2014 allowing the application filed by the Appellant in part by modifying the Arbitral Award both in favour of the Appellant as well as the respondent under the Arbitral award dtd. 5/5/2014.

(2.) The respondent was a successful bidder in a tender floated by the Appellant for the construction of 34 bunk houses at the Appellant's rig site. The Appellant executed a letter of award (LOA) dtd. 23/7/2009 in favour of the respondent awarding the tender to the respondent and thereafter, purchase order dtd. 24/9/2009 was also issued in favour of the respondent. Under the letter of award dtd. 23/7/2009, there is a condition which stipulates that 34 bunk houses will have to be constructed by the respondent and delivered to the Appellant within 120 days from the date of the said letter of award. The Appellant levied liquidated damages of Rs.10,22,631.00 upon the respondent as according to the Appellant, the respondent delivered the bunk houses after a delay of 414 days from 23/7/2009 being the date of the letter of award.

(3.) However, it is the case of the respondent that the delay at various stages was only due to the Appellant as the approval of drawings and inspections by the Appellant was done belatedly.