PUBLIC WORKS DEPARTMENT GOT OF MAHARASHTRA NATIONAL HIGHWAYS Vs. KHARE AND TARKUNDE INFRASTRUCTURE PVT. LTD.

JUDGEMENT

(1.) Context and Factual Background: This is a Petition filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 ("the Act") impugning an arbitral award dated April 14, 2023 ("Arbitral Award"), by which disputes and differences relating to an Engineering Procurement and Construction Contract comprising agreements dated December 17, 2014 and December 24, 2014 (collectively the "Agreement") executed between the parties came to be adjudicated.

(2.) The core contention that needs to be dealt with in the challenge is twofold: first, that Clause 4.1.5 specifically and categorically provides that the aggregate damages payable shall not exceed 1% of the contract price, and yet, the Impugned Award has held that such limit would not apply in the peculiar facts of the case; and second, that interest awarded at the rate of 18% per annum compounded with quarterly rests for pre-arbitration, pendente lite and post-arbitration, is contrary to the contract as well as Sec. 31(7) of the Act.

(3.) A brief factual overview of facts relevant for purposes of this Petition may be summarised thus:-