LAWS(APH)-2025-12-25

SUNRISE AND ENGINEERING INDUSTRIES Vs. HINDUSTAN SHIPYARD LTD.

Decided On December 31, 2025
Sunrise And Engineering Industries Appellant
V/S
HINDUSTAN SHIPYARD LTD. Respondents

JUDGEMENT

(1.) As all these appeals raise the same issues and arise out of awards passed by the same Arbitrator, they are being disposed of, by way of this common judgment.

(2.) Respondent No.1 in all these cases is a Public Sector Undertaking, involved in the construction, fabrication and repairs of various kinds of vessels and other works. The 1st respondent had awarded sub-contracts to various sub-contractors for the aforesaid works. These contracts were awarded under separate work orders. All these work orders contained timelines within which the work was to be completed. In the event of failure to adhere to the timeline, all the contracts provided for liquidated damages to be levied @ 2% per week of delay up to a maximum of 20% of the contract value. The 1st respondent, on the ground that there was delay in all the aforesaid contracts, awarded to the appellants herein, had levied liquidated damages of 20% of the contract value and deducted the same in the bills of the appellants. Aggrieved by the said deduction of liquidated damages, the appellants sought reference to arbitration. A common arbitrator was appointed in all these cases.

(3.) The details of the claims made by the appellants and the awards passed by the learned Arbitrator are contained in the table set out below: