Judicial intervention in arbitration matters is limited; arbitral awards should be upheld unless a party shows clear evidence of patent illegality or violation of fundamental public policy.

JUDGMENT

PANKAJ MITHAL, J.

1. Leave granted.

2. The appellant-Jan De Nul Dredging India Private Limited [Hereinafter referred to as ‘appellant-Dredging India’] is a company registered under the Indian Companies Act, 1956 with an expertise in executing complex dredging operations.

3. The respondent-Tuticorin Port Trust [Hereinafter referred to as ‘respondent-Port Trust’] is a statutory authority constituted under the Major Port Trust Act, 1963. It undertook a major dredging project titled “Deepening of the Channel and Basin to Cater to 12.80 meter Draught Vessels at Tuticorin Port”. In context with the above project to enhance the navigational depth of the port to accommodate larger sea vessels, the Port Trust on 15.07.2009 issued Notice Inviting Tender [In short ‘NIT’].

4. The appellant-Dredging India was one of the bidders. After the evaluation of the bids, the contract was awarded to it. A formal work order was issued to it on 28.10.2010. Consequently, a License Agreement incorporating the tender conditions was formally executed between the parties on 27.12.2010 which involved the monetary value of Rs.465,47,56,517/- (Rupees Four Hundred Sixty Five Crore Forty Seven Lakhs Fifty Six Thousand Five Hundred and Seventeen only). It was stipulated that the work would be completed within 14 months from the commencement i.e. by 28.06.2012.

5. The equipment to be deployed for the execution of the project under the License Agreement included one Cutter Suction Dredger (CSD) with a cutter power of 3,000 HP or more, three Self-Propelled Barges with hopper capacity of 16,000 cubic meters each, Floating/Submersible Pipelines of 800-900 mm diameter and one Backhoe Dredger (BHD) Jerommeke with a bucket capacity of 3 to 4 cubic meters along with supporting and survey vessels.

6. Clause ‘C’ of the tender conditions which was part of the NIT stipulated as under :-

“(C) Plant and Equipment – Dredgers and ancillary equipments:

The intending Tenderers should own or hire suitable plant and equipment if it is on hiring, proof of availability of the plant and equipment on lease/charter for the entire duration of the work at short notice specifically for this project shall also be attached. It will be incumbent on the intending Tenderers to describe fully the equipment and plant which they propose to utilize for completing the work within the prescribed period. The choice of technology and plant and equipment proposed to be deployed will be left to the choice of the intending tenderers, subject to satisfying the Port Trust and the adequacy of the proposed technology and plant and equipment.

The Port Trust has assessed and average daily output of 12000 cubic meters for the scenario of deployment of Heavy Duty CSD to complete the work within the specified period of Fourteen Months for which the following indicative plant & equipment could be required.

1. Cutter Suction Dredger having cutter power 3000 HP or more -1 No.

2. Self-propelled barges having hopper capacity 1600 Cubic Meters - 3 Nos.

3. Sufficient length of Floating/Submersible Pipe lines with and without ball joints 800 mm to 900 mm diameter.

4. Backhoe Dredger having bucket capacity 3 to 4 Cubic Meters - 1 No.

5. Supporting vessels

6. Survey Vessels etc.,

The tender document is open to firms/ companies/volunt