Alstom T & D India Ltd (Formerly Areva T&D India Ltd.) v. M/S Aradhya Infra-Tech Pvt. Ltd

NAVIN CHAWLA, J DECEMBER 07, 2017/rv

Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + OMP NO. 372/2015 Reserved on: 23rd November, 2017 Date of decision:07th December, 2017 ALSTOM T & D INDIA LTD (FORMERLY AREVA T&D INDIA LTD.) ..... Petitioner Through: Mr.Kaustubh Sinha, Adv. versus M/S ARADHYA INFRA-TECH PVT. LTD. ..... Respondent Through: Ms.Ekta Mehta, Mr.Shreyans Singhvi, Advs. CORAM: HON'BLE MR. JUSTICE NAVIN CHAWLA 1. This petition under Section 34 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as 'the Act') has been filed by the petitioner Alstom T & D India Ltd. (Formerly Areva T&D India Ltd.) challenging the Arbitral Award dated 27.02.2015 passed by the Sole Arbitrator. 2. The petitioner had been awarded a contract pertaining to erection and commissioning of power equipments in construction of 132 x 33 KV sub-station at Ghatanji, District Yavatmal by M/s Maharashtra State Electricity Transmission Company (hereinafter referred to as MSETCL). Amongst the various activities forming part of the scope of the petitioner's responsibilities was to carry out Page 2 civil and building work on Ghatanji. The petitioner allotted this part of the land to the respondent. Purchase Order dated 04.03.2010 was placed upon the respondent on the agreed terms as contained in the General and Special Conditions of the Contract. As disputes arose between the parties, the following claims were made before the Sole Arbitrator by the respondent:- "1. Claim of transportation of 8300 cum of Murrum from longer distance :Rs. 6171050/- 2. Claim for additional expenditure for use of additional cement: Rs.509216/- 3. Claim for over head expenditure on staff for extended duration of contract: Rs.4,92,7509/- 4. Claim for loss on account of underutilisation of machineries: Rs.16355248/- 5. Claim for loss of business profit for the work withdrawn: Rs.1801108/- 6. Balance of RA bills: Rs.3507965/- 7. Retention amount: Rs.1460795/- 8. Claim on account of refund of income tax: Rs.764848/- 9. Legal expenditure: Rs.1000000/-" 3. The present petition has been filed by the petitioner challenging the Arbitral Award insofar as it grants the claim made by the respondent under claim Nos. 1, 6 and 7 referred above. 4. As far as grant of claim No. 1 i.e. the claim of transportation of 8300 cum of Murrum from longer distance totaling Rs. 61,71,050/- is concerned, it is submitted that the Arbitrator has Page 3 granted this claim in favour of the respondent in ignorance of the terms of the contract and without any evidence. Further, relying upon the averments made in the pleadings filed before the Arbitral Tribunal, it is submitted that this claim could not have been separately granted in favour of the respondent as it was a part of Rs. 35,07,965/- claimed by the petitioner under claim No. 6. 5. The learned counsel for the petitioner has submitted that the claim No. 1 has been granted in favour of the respondent solely relying upon Annexure-4 filed by the claimant with its Statement of Claim. It is submitted that this document was merely a chart and had been denied by the petitioner in the admission / denial of documents conducted before the Sole Arbitrator. It is further submitted that in the affidavit by way of evidence filed before the Sole Arbitrator this chart remained un-proved and, therefore, no reliance could have been placed on the same. 6. On the other hand, learned counsel for the respondent submits that there was no denial that this chart, which was filed as Annexure-4, was based on the additional distance from which the Murrum was carried and rates presided by the State of Maharashtra for such additional transportation cost. She further submits that in the reply filed before the Sole Arbitrator, there was no denial by the respondent to the distance or the rates that were mentioned in Annexure-4. She further drew my attention to the Affidavit by way of Evidence filed by the respondent before the Sole Arbitrator to contend that even in the affidavit, the distance as also r