(Per VVSR,J)

1. These two appeals under Section 37 of Arbitration and Conciliation Act, 1996 (the Act, for brevity), can be disposed of by common order as they arise out a common order passed by the Court of District Judge, Visakhapatnam, in O.P. No.1654 of 2001 and O.P.No.603 of 2003.

2. Hindustan Petroleum Corporation Limited (HPCL) through M/s.Engineers India

Limited invited tenders for civil and structural works for off-sites for Visakha Refinery Expansion Programme-II (VREP-II) at an estimated cost of Rs.10,20,53,687.70 ps. The quotation of Indwell Construction Limited (ICL) of Rs.10,20,53,687.70 ps was accepted and contract was awarded on 25.9.1997. The work was scheduled to be completed by 28.8.1998 but the same was extended upto 06.2.1999 due to a fire accident in the Refinery. During the course of the implementation of contract disputes arose. ICL submitted claims for Rs.82,45,542/-and also requested for appointment of arbitrator. The Director (Refineries), HPCL, by letter dated 29.11.2000 appointed Sri S.V.K. Gnaneshwar, Project Head, Visakha Power Project, HPCL, as sole arbitrator, to adjudicate the disputes. The arbitrator entered reference and issued notice to the parties. ICL filed claim petition on 30.12.2000 claiming a total sum of Rs.87,79,851/-under ten claims which are as follows. 1. Loss due to idle labour and machinery caused by stoppage of work, interruptions, non issue of work estimates, withdrawal of work permits etc., 2. Loss due to overhead charges for prolonged period of contract, 3. Idle charges for labour and equipment from the date of blast to the date of demobilization, as per orders of HPCL, 4. Demobilization and Remobilization charges, 5. Removal and transportation of debris after the blast with men and machinery as ordered by HPCL, 6. Payment of interest for delay in payment of running account bills, 7. Payment of interest for delay in payment of final bill, 8. Refund of crane hire charges deducted by HPCL from RA Bill No.21, 9. Escalation of item rates for the period from 01.12.1998 to 06.2.1999, and 10. Dewatering charges.

3. HPCL filed reply and counter claim before the arbitrator claiming interest on advance granted by HPCL and amounts towards expenses for arbitration proceedings. They contended that the parties agreed for revisions in the contract being Revision Nos.I, II, III, IV, IVA, V, VI, VII, VIII and that ICL gave an undertaking that they would not have any other claims or claim with regard to works whatsoever. They also relied on change order(s) issued from time to time.

4. Learned Arbitrator passed award on 05.9.2001. Claim Nos.8 and 9 were allowed and claim No.7 was partly allowed. Claim Nos.1, 2, 3, 4, 6 and 10 were rejected. ICL withdrew claim No.5. The summary of the award passed by the Hon’ble arbitrator reads as under.

1. An amount of Rs.25,10,957/- is awarded to the claimants M/s.Indwell Constructions Ltd., vide claim Nos.7, 8 & 9.

2. This amount shall be paid by the respondents to the claimants within a period of 40 days from the date of this award failing which the award amount attracts interest @ 11% from the 31st day till the date of payment.

5. HPCL filed O.P.No.1654 of 2001 under Section 34 of the Act seeking to set aside the award in respect of claim No.8. ICL filed O.P. No.603 of 2003 praying the District Court to set aside the findings of the arbitrator with regard to claim Nos.1 to 4, 6 and 10, and also modify the rate of interest in respect of claim No.7. Learned District Judge by common order dated 10.5.2005 dismissed both the O.Ps. HPCL therefore filed CMA No.874 of 2005 against O.P.No.1654 of 2001 and ICL filed CMA No.876 of 2006 against O.P.No.603 of 2003.

6. Learned Counsel for ICL though raised various contentions for some time fairly submitted that ICL does not press the appeal. Therefore nothing survives in CMA No.876 of 2006. CMA No.874 of 2005 is limited to the award of Hon’ble Arbitrator as confirmed by District Court only in relation to claim