Airports Authority of India v. M/S Parnika Commercial & Estates (P) Ltd & Anr

NAVIN CHAWLA, J FEBRUARY 19, 2018/rv

Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + OMP 117/2015 Reserved on: 1st February, 2018 Date of decision: 19th February, 2018 AIRPORTS AUTHORITY OF INDIA ..... Petitioner Through: Mr.Sunil Ahuja, Adv. versus M/S PARNIKA COMMERCIAL & ESTATE (P) LTD. & ANR. ..... Respondents Through: Mr.Bhupesh Narula, Adv. CORAM: HON'BLE MR. JUSTICE NAVIN CHAWLA 1. This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') has been filed by the petitioner Airports Authority of India challenging the Arbitral Award dated 05.09.2014 passed by the Sole Arbitrator. The challenge to the Award is confined to grant of claim no. 1,4,7.1 and the Additional Claim no. 2 as also the interest on the awarded amounts. 2. Claim no. 1 raised by the respondent before the Sole Arbitrator was for a sum of Rs. 4,58,000/- towards the recovery of liquidated damages imposed by the petitioner. 3. The respondent had been granted the work of "extension of Rajiv Gandhi Bhavan, (Operational Complex) at Safdarjung Airport, New Delhi" vide Agreement dated 12.02.2007 by the petitioner. The stipulated dates of start and completion of work were 15.02.2007 and 14.02.2008 respectively. The work was completed on 23.07.2010 i.e. after a delay of 851 days. The petitioner granted the extension of time without levy of Page 2 compensation / liquidated damages up to 08.05.2010 and granted extension of time from 09.05.2010 to 23.07.2010 on levy of liquidated damages of Rs. 4,58,000/-, which was recovered from the final bill paid to the respondent. The Arbitrator, after considering the Hindrance Register; the fact that earlier there was a recommendation to grant extension of time without levy of compensation; as also the specific hindrances after 09.05.2010, allowed the claim of respondent. Paragraph 5.21 of the Impugned Award is reproduced herein under:- "5.21 The compensation has been levied for the period 9.5.2010 to 23.7.2010 which implies that the work should have been completed latest by 8.5.2010. It is recorded in the Hindrance Register that certain hindrances were removed only after 9.5.2010 such as: i. Underground fuel tank location finalized on 4.6.2010; ii. Restriction in working on week days in connecting corridor lifted on 17.6.2010; iii. Barracks allowed to be dismantled for development works on 21.6.2010; It is obvious that the items of works which were held up on account of the above hindrances could not have been completed by 8.5.2010. The Claimant has to be given adequate time for completing these items after the respective hindrances were removed. Therefore, EOT up to 23.7.2010 without levy of compensation appears to be justified." 4. Learned counsel for the petitioner submits that the hindrances as noted in the paragraph quoted above were minor in nature and would not have affected the work of the respondent. He submits that the said Page 3 hindrances, therefore, could not have resulted in the grant of extension of time without compensation. 5. I am unable to agree with the submissions made by the counsel for the petitioner. The hindrances, as recorded by the Arbitrator, are not denied by the petitioner. The same cannot be said to be minor in nature. In any case, whether these hindrances would result in the grant of the extension of time without compensation, is an issue to be determined by the Arbitrator, which he has done in the Impugned Award after taking into account the Hindrance Register. The view of the Arbitrator, in my opinion, cannot be said to be perverse or so unreasonable so as to warrant interference by this Court in the exercise of its power under Section 34 of the Act. 6. In claim no.4, the respondent has claimed an amount of Rs. 9,97,76,315/- towards reimbursement of losses on account of non- payment of enhanced contract rates by 30%. The Arbitrator, in the Impugned Award, has granted a sum of Rs. 55,73,217/- in favour of the respondent against this claim. 7. The Arbitrator, while awarding