The Arbitration Petition No.361 of 2011 is filed by the Petitioner- Dirk India Private Ltd against the Respondent- Maharashtra State Electricity Generation Company Ltd. The petitioner challenges the award of the Arbitral Tribunal dated 30 March 2011. By the impugned award, the Arbitral Tribunal rejected the claim made by the Petitioner. The main prayer of the Petitioner was to set aside the notice dated 23 November 2006 issued by the Respondent, terminating the agreement between the parties, and to direct the Respondent to specifically perform the agreement dated 4 October 2000, and the terms and conditions of the minutes dated 11 April 2005, with certain particulars. The Petitioner had also claimed various other reliefs, including a prayer for damages.

2. Arbitration Petition No.695 of 2011 is filed by the Maharashtra State Power Generation Company Limited against the Dirk India Private Limited challenging the same award passed by the Arbitral Tribunal, to the extent that it relates to the dismissal of its counter claim. The petitioner-Maharashtra State Power Generation Company Limited had sought damages from the Dirk India Private Limited.

3. Since both the petitions, filed under Section 34 of the Arbitration and Conciliation Act, 1996, have arisen from the same arbitral award, they were heard together and are disposed of by this common judgment.

4. The Dirk India Private Limited (Dirk India) is a company incorporated under the provisions of the Companies Act, 1956. It is part of a group of companies based in United Kingdom. It specializes in recycling by-products generated by thermal power stations. Dirk group of companies use Pulverised Fly Ash, which is a waste product generated in coal fired thermal power stations to manufacture cement replacement material under the brand name of 'Pozzocrete.' The Maharashtra State Electricity Generation Company Limited (Mahgenco), which was earlier known as Maharashtra State Electricity Board, is a government company incorporated under the Companies Act, 1956. Mahgenco has various thermal power plants, one of which is Nashik Thermal Power Station, Eklahare, Nashik.

5. The disputes between the parties relate to Nashik Thermal Power Station (NTPS). The NTPS uses coal as fuel for generation of electricity. Coal is burnt in a boiler with the help of air supplied by fans. The waste product is ash. The ash generated is of two types. One is Furnace Bottom Ash comprising of coarse ash. Second is Pulverized Fly Ash (PFA). Due to the heat and the air circulation of the fans used at the power station, PFA which is a fine ash, rises to the top of boilers. The Bottom Ash generated is mixed with water and converted into a slurry. This slurry is then pumped out from the bottom of the boilers and is disposed off in an Ash lagoon. The Bottom Ash is generally about 20% of the total ash. The PFA which rises to the top of the boilers is trapped by Electrostatic Precipitators (ESPs) installed along the outer sides of the boilers. Each particle of PFA has a small electric charge. The ESPs are rows of large plates made of copper, each carrying an electric current of varying intensity. If the PFA escapes in the air, it being very fine, can cause serious atmospheric pollution. Traditionally Individual contractors were lifting a small quantity of waste fly ash from NTPS, while most of the ash was being washed away into the lagoon or escape into the air. This was the position when the parties negotiated an agreement in respect of the PFA.

6. Negotiations culminated into an agreement between Dirk India and the MSEB on 4 October 2000. In the recital of the agreement it was stated that the MSEB was interested in disposal of PFA to avoid atmospheric pollution. MSEB was satisfied about the capacity of Dirk India to make cement substitute products from PFA, and that MSEB agreed to supply PFA to Dirk India for manufacturing Pozzocrete on the terms and conditions specified in the agreement.

7. Pursuant to the ag