Airports Authority of India v. Sikka Associates

NAVIN CHAWLA, J DECEMBER 21, 2017 RN

Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + OMP (COMM) NO.164/2017 Reserved on: 29th November, 2017 Date of decision: 21st December, 2017 AIRPORTS AUTHORITY OF INDIA ..... Petitioner Through: Mr. K.K. Rai, Senior Advocate with Mr. Digvijay Rai, Ms. Chetna Rai, Mr. Anshul Rai and Mr. Pulkit Tyagi, Advocates. versus SIKKA ASSOCIATES ...... Respondent Through: Mr. Arun Kathpalia, Senior Advocate with Mr. Angad Mehta and Mr. Samaksh Goyal, Advocates. CORAM: HON'BLE MR. JUSTICE NAVIN CHAWLA 1. The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') has been filed by the petitioner challenging the arbitral award dated 23rd March, 2015 passed by the Sole Arbitrator. 2. The petitioner had invited global design competition for comprehensive architectural and engineering services for the proposed new Domestic Terminal Building at NSCBI Airport at Page 2 Kolkata (West Bengal). The competitive design submitted by the respondent was approved by the Assessment Committee of the petitioner and the respondent was appointed as consultant on 1st June, 2007 for air side of the project. Since the proposed integrated Passenger Terminal Building was to cater to 20 million passengers annually, the petitioner also appointed another Architectural Consultant for city side works of the Airport. 3. On 21st August, 2008, an agreement was entered into between the petitioner and the respondent for execution of 'Architectural/Engineering Consultancy Services' for the proposed new integrated passenger terminal building at NSCBI airport, Kolkata. Some of the terms of this agreement are relevant for the purposes of adjudication of the present petition and are quoted herein below:- 2.0 PROFESSIONAL FEE 2.1 Professional fee shall be paid only for the items of works for which professional services have been rendered by the Consultant. 2.2 1n consideration of the professional services rendered by the Consultant, he shall be paid a professional fee of 5% of the actual cost of the work or the awarded cost whichever is lower of the subhead of the works for which consultant has rendered Professional services. In addition to the professional fee, service tax will be paid as per the Act in vogue at the time of the payment of the bill. The initial payment shall be made on approved preliminary estimated cost. The cost of the work shall not include costs of aerobridges, in-line Baggage handling Conveyor system, Baggage claim Belts, telephone exchange equipment, Page 3 Specialized hand/Baggage security scanning items, DG Sets, FIDs, CCTV, Surveillance CCTV, check-in counters, custom and immigration counters and dust bins. For effecting stage wise payments the cost of works shall be as specified in clause 4.1. Nothing extra shall be paid to the Consultant on account of Soil investigation, site survey, vetting from IIT, presentations, model, computer simulation, presentation drawings etc. Items like travellators, escalators, elevators, counters, concourse and security hold chairs and furniture would be included towards payment till stage 4. The payment to State Electricity Board for dedicated power supply may be included in the cost estimate of the project but not to be included for payment to Consultant. 3.0 SCHEDULE OF PAYMENT 3.1 Details of services to be rendered at various stages shall be as mentioned in Annexure 'A'. 3.2 The Consultant shall be paid professional fee in the following· stages consistent with the work done plus other charges and reimbursable expenses as agreed upon. On submitting the bill the consultant shall certify completion of stage work. 4.0 EFFECTING PAYMENT TO THE CONSULTANT 4.1 The fee payable to the Consultant shall be computed on the actual cost of works or the awarded cost whichever is lower. The payment due to the Consultant at different stages shall be computed on the following basis: (i) At Stage 1 : On rough estimate of cost (ii) At Stage 2,3&4 : On preliminary estimate