1. These are objections filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as ‘the Act’) read with Sections 12, 13, 16, 18, 28(3) and 31 of the Act by the petitioner-National Thermal Power Corporation (for short ‘NTPC’) against the Awards of the Arbitral Tribunal dated 13th September, 1999 and 25th June, 2002.

2. The disputes between the parties arose from a lump sum contract for 4 Cooling Towers of reinforced cement concrete 120 Metres high along with RCC basin for collection of cooled water and arrangement of RCC channels and AC Pipes provided horizontally for sprinkling of hot water through nozzles over layers of PVC serrated sheets, for the purpose of cooling of hot water from 43 Degree C. to 32 Degree C. through natural draft created in the towers. However, the supply of hot water and distribution of cold water from the basin was outside the scope of the contract.

3. The contract, inter-alia, provided for foreign collaborators and their design for structural and thermal attributes of the Cooling Towers, for supply of cement and steel free of cost by NTPC, for variation in the quantity of such cement and steel on certain prescribed consideration and for recovery from the contractor for excess consumption of cement and steel, for price adjustment of materials, labour and fuel linked with price indices, for foreign exchange rate protection and other usual conditions found in building and engineering contracts.

4. A completion schedule was stipulated for making ready the cooling towers. A schedule was also fixed for carrying out the trial operation within a specific period fixed separately for each tower and completion of miscellaneous works was fixed after two weeks thereafter. A Performance Guarantee (hereinafter referred to as the ‘PG’) test was also one of such terms. A provision was made in the contract for Bank Guarantee for 10% of the contract sum for non-recoverable initial advance and 5% progressive payment for the stages of trial run and commissioning. The validity period for the various guarantees was stipulated in the contract. The performance guarantee was to be valid till the expiry of the guarantee period of one year after trial operation and 90 days thereafter. The guarantee for initial advance was to be valid till 90 days after trial operation, and that for progressive payments for trial run and commissioning till after completion of the PG Test. A further provision in the contract provided that the cooling towers were to be taken over by NTPC after completion of all the tests. Provisions were also made for force majeure and extension of time. Levy of liquidated damages for delay in completion as well as in shortfall in achieving the stipulated temperature of 32 Degree C. was also prescribed.

5. The case of the respondent/claimant set up before the Arbitrator was that: -

a. The bid of the respondent contractor M/s. Wig Brothers (Builders & Engineers) Limited was accepted by NTPC on 07th November, 1988 for the lump sum of Rs.13,63,22,750.00. A performance guarantee bond was submitted by the contractor as per the contract requirement valid for a stipulated period of one year after trial operation

.+ 90 days and keeping to the initial prescribed schedule this bond was valid up to 30th June, 1993 as specifically mentioned in the letter of award of the contract.

.b. The last of the four cooling towers was handed over to NTPC on 10th July, 1995. Apparently, on 25th July, 1996 the respondent-contractor submitted its pre-final bill for an amount of Rs.26,05,21,598. NTPC, by its letter dated 9th August, 1996 denied payment of the said bill and that resulted in a dispute between the parties. NTPC once again communicated its refusal to clear the pre-final bill to the Respondent by letter dated 16th August, 1996.

.c. The respondent by its letter dated 11th November, 1997 invoked the arbitration clause and since, according to the respondent, no Enginee