MAHANAGAR GAS LTD Vs. BABULAL UTTAMCHAND

JUDGEMENT

(1.) THIS appeal is directed against the judgment and order dated 9 March 2012 of the learned Single Judge dismissing the arbitration petition of the appellant herein under section 34 of the Arbitration and Conciliation Act, 1996 with the only modification of reducing the future rate of interest from 18% to 12% from the date of the award (5 March 2010) till realisation on the claim as well as the counter -claim.

(2.) THE appellant awarded the respondent (the claimant) the work of project management and construction of pipeline network for domestic supply of natural gas in the area of Santacrtuz by work order dated SRK 1 of 15 app -349 -12.sxw 12 October 2002. The said work was to be completed within three years from the date of letter of acceptance. The work was valued at Rs.3.87 crores. The respondent, accordingly, mobilised the requisite resources and made investment. The respondent was also required to enter into the agreement with the customers for providing gas connections.

(3.) ON the other hand, the appellant also made counter -claims under the various heads. It is not necessary to refer to all the heads as the Arbitrator made the award with the counter -claim only for a figure of Rs.7,17,445/ - under the head of material reconciliation penalties and recoveries and no amount was awarded under the other heads.