UNION OF INDIA Vs. MODERN ENGINEERING WORKS

JUDGEMENT

(1.) The present Appeal has been filed challenging the order dtd. 22/10/2018 passed by the I Additional Chief Judge, City Civil Court, Secunderabad ('Trial Court'), dismissing the petition filed by the appellants under Sec. 34 of The Arbitration and Conciliation Act, 1996 ('the 1996 Act') for setting aside the Award dtd. 24/4/2013. The present Appeal has been filed under Sec. 37 of the said Act.

(2.) The appellants before this Court were the respondents in the arbitration. The respondent No.1/Contractor in the Appeal was the Claimant in the arbitration. The learned Arbitrator is arrayed as the respondent No.2 in the present Appeal.

(3.) The respondent No.1/Contractor had raised six claims in the arbitration for the work done in accordance with the Agreement dtd. 9/3/1994, which was for conversion of Hubli - Londa Sec. from Meter Gauge to Board Gauge between Dharwad and Mugad Reach - II and execution of miscellaneous works between Dharwad and Mugad Stations. The six claims related, inter alia, to (i) difference in rates payable for excess quantities executed by the respondent No.1/Contractor beyond 25% of the agreed quantities along with additional items, (ii) payment for Earth work deducted towards subsidence allowance, (iii) reimbursement of charges and commission paid to the financiers on the amounts borrowed, (iv) reimbursement of expenditure incurred in continuing overheads and (v) establishments from 1/5/1995 to 31/3/1997 on account of delay in finalisation of bills, (vi) reimbursement of loss of business and profit thereon, interest @ 18% from 1/4/1997 to 1/9/2001 on the total claim amount along with yearly rests.