The Petitioner has challenged an award dated 28th March, 2007, amended on 19th April, 2007 passed by the sole Arbitrator (The Chief Engineer, Pune) in the matter of disputes pertaining to contract for replacement of Central Air-conditioning Plant at Wecors at Naval Dockyard, Mumbai. By the impugned award, the Arbitrator has rejected the counter claim of the Petitioners and granted claims as raised by the Respondent (Original-Claimant). The necessary dates and events are as under:-

2. On 04.01.1996, tenders were invited for replacement of Central Type AC Plant at Wecors Naval Dockyard Bombay in Appendix of Schedule of which item to be provided was Semi Harmatic Water Chilling Package make Of Voltas/ Blue Star/ Danham Bush each of 175 Tone Capacity complete with Rotorary Secre Compressor using refrigerant HCFC-22 etc.

3. On 15/06/1996, the Respondent tender was accepted for the work Rs. 2,85,83220/-. Work order No. 1 dated 2nd July, 1996 was issued recording that site was handed over on 4th July, 1996/ date of commencement 4th July, 1996 and date of completion 3rd May, 1997. The same was accepted and signed by the Respondents.

4. On 08/08/1996, the Respondents informed that they had received Work Order dated 2nd July, 1996 along with the Petitioners letter dated 4th July, 1996 and were returning the same duly signed.

5. On 02/09/1996, the Petitioners informed the Respondents that facilities requested by letter of 12th August, 1996 would be made available when they commenced the subject work.

6. On 11/09/1996, the Petitioners requested the Respondents to commence the work on priority basis.

7. On 07/09/1996, the Petitioners issued telegram informing the Respondents that work had not started at the site.

8. On 09/09/1996, the Respondents informed that they had placed the order for all the items and as soon as they would receive the materials the same would be despatched and that they had placed order for compressor and would despatched the drawings and complete fabrication of condensor and chillers within 15-20 days and would be dispatched along with pipes fittings and controls by first week of October.

9. On 01/10/1996, the Respondents informed that they had taken up the work in hand and shortly the material for the work would be at the site.

10. On 03/12/1996, the Petitioners issued notice to the Respondents that completion date 3rd May, 1997 and on failure to complete the work within that date compensation as per Condition No. 50 would be claimed.

11. On 09/12/1996, Second RAR for Rs.28,73,645/- was paid to the Respondents.

12. On 07/01/1997, the Respondents informed the Petitioners that delay in completion of the work had occurred for the reasons beyond their control and hence the compensation was not recoverable from them.

13. On 10/01/1997, third RAR was paid to the Respondents to the extent of Rs.15 lakhs.

14. On 21/02/1997, second notice requesting the Respondents to complete the work within stipulated date was issued. Giving warning that compensation would be claimed on failure to do so.

15. On 17/03/1997, 4th RAR was paid to the Respondents to the extent of Rs.97 lakhs.

16. On 19/04/1997, 5th RAR was paid to the Respondents to the extent of Rs.24 lakhs.

17. On 20/06/1997, the Respondents requested to extend completion date of work till 3rd November, 1997.

18. On 22/08/1997, DO No. 2 granting extension of time upto 3rd September, 1997 was issued recording that other conditions of contract agreement shall still hold good.

19. On 14/07/1997, 6th RAR was submitted and the Respondents were paid Rs.17,50,000/-.

20. On 01/09/1997, the Respondents submitted 7th RAR claimed Rs.14,01,478.50 ps.

21. On 22/08/1997, the Petitioners informed the Respondents that they had submitted design mixed for M20.

22. On 21/01/1998, the Petitioners again requested the Respondents to remove the equipment not confirming to the contract specification and rectify the defects.

23. On 16/01/1998, the Respondents requested the Petitioners to c