IMPORTANT POINTS
(1) Interest has to be awarded as specified in contract and in absence of any contract, as per discretion of Arbitral Tribunal - Arbitral Tribunal can grant pre-reference interest from date on which cause of action arose till date on which award is made.
(2) Sum awarded would mean principal amount plus interest awarded from date of cause of action up to date of award.

JUDGMENT :

Ujjal Bhuyan, J.

This appeal by special leave is directed against the judgment and order dated 01.08.2023 passed by the Division Bench of the High Court of Delhi in FAO (OS) (Comm) No.175 of 2021.

2. It may be mentioned that by the aforesaid judgment and order dated 01.08.2023 (impugned judgment), Division Bench of the High Court of Delhi (High Court) allowed the appeal of National Projects Construction Corporation Limited, (NPCC) or the respondent hereinafter, filed under Section 37 of the Arbitration and Conciliation Act, 1996 (briefly ‘the 1996 Act’ hereinafter) setting aside that part of the judgment and order dated 02.08.2021 passed by a learned Single Judge of the High Court under Section 34 of the 1996 Act upholding the directions contained in paragraph 58(b) of the award dated 28.10.2020 as well as setting aside the directions of the arbitral tribunal as contained in paragraph 58(b) of the said award.

3. Relevant facts may be briefly noted.

4. Respondent had engaged the services of the appellant for executing a contract relating to Ramagundam Super Thermal Power Project, Ramagundam, District Karimnagar in the then composite State of Andhra Pradesh. In this regard, two separate work orders were issued:

(i) Work order No.917344/838 dated 19.06.1984 in respect of the work excavation of foundation package work-II 3 X 500 MW of National Thermal Power Corporation Limited, Ramagundam Super Thermal Power Project;

(ii) Work Order No. 917344/2382 in respect of the work foundation package work, stage-II, at Ramagundam Super Thermal Power Project;

5. Thereafter, contract agreement was entered into between the parties. As per clause 4 of the conditions of contract read with clause 15 of the special conditions attached to the work orders, all the disputes and differences between the parties were to be settled by way of arbitration.

6. It is stated that appellant had completed the contract work in the year 1987. Respondent had paid the appellant the contractual dues after withholding certain sums on account of recoveries. Appellant disputed such recoveries. Additionally, appellant also raised certain claims which were not accepted by the respondent.

7. In view of such disputes and differences, appellant invoked the arbitration clause by issuing notice dated 17.05.1993.

8. Respondent did not take immediate steps for appointment of an arbitrator. After considerable delay, by communication dated 07.10.1997, respondent appointed Shri Shivamoy Ghosh, Additional General Manager, NPCC, Madras Sector, Chennai as the sole arbitrator to arbitrate on the subject dispute.

9. Appellant filed statement of claims before the learned arbitrator on 20.01.1998 claiming an aggregate amount of Rs.4,46,29,404.00 along with pendente lite and future interest at the rate of 24 percent per annum till final realization of the amount.

10. Appellant sought for a direction from the learned arbitrator to the respondent to supply various documents related to the dispute. However, learned arbitrator only permitted the appellant an opportunity to inspect the documents and did not issue any direction to the respondent for supply of copies.

11. Aggrieved thereby, appellant filed a petition under Section 14 of the 1996 Act before the High Court seeking termination of the mandate of the learned arbitrator and for appointment of a new arbitrator in his place. This petition was registered as OMP No. 214/2002. By order dated 11.10.2004, learned Single Judge terminated the mandate of Shri Shivamoy Ghosh and appointed Shri A.S. Chandhiok, Sr. Advocate, as the sole arbitrator.

12. Respondent challenged the said order of the learned Single Judge dated 11.10.2004 before the Division Bench of the High Court in FAO (OS) No.241/2004. By order dated 02.02.2005, Division Bench appointed Shri L.R. Gupta, retired Director General of CPWD as the sole arbitrator.

13. Before Shri L.R. Gupta, the learned arbitrator, respondent while filing its reply to the statement of claims filed by the appe