G.S.Sistani, J.

This is an appeal filed by the appellant under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 (hereafter “the Act”) read with Section 13(1) of the Commercial Courts/Commercial Division and Commercial Appellate Division of High Courts Act, 2015 against the order dated 03.04.2018 passed by the learned Single Judge by which the objections to the Arbitral Award dated 25.11.2017 have been dismissed.

2. The necessary facts, which are required to be noticed for disposal of this appeal, are as under :-

3. The appellant, Rail land Development Authority (RLDA), was constituted by the Central Government under section 4A of the Railway Act, 1989 on 31.10.2006 and bought into existence from 01.11.2006 with the purpose to undertake the development of vacant land of Railways for commercial use on behalf of the Railway Ministry to generate revenue through non-tariff measures and optimize the utilization of public property.

4. On 02.02.2010, the appellant floated a document of Request for Qualification (RFQ) for grant of lease for development of land including re-development of existing Railway Colony at Sarai Rohilla, New Delhi. On 05.06.2010, the bidders were called for a pre-bid meeting, where several queries raised by prospective bidders and were responded to with appropriate alterations being made in the Request for Proposal (RFP).

5. On 18.10.2010, RLDA invited tenders for commercial development of a parcel of land measuring 15.27 hectares. The Project also envisaged redevelopment of a Railway Colony existing over land measuring 4.37 hectares. Pursuant to the aforesaid invitation, the respondent (PDL) submitted its bid on 26.11.2010. PDL's bid of Rs. 1651,51,00,000/- (Rupees One Thousand Six Hundred Fifty- One Crore and Fifty-One Lakh only) was the lowest. Therefore, PDL was declared the successful bidder. Further, RLDA issued a Letter of Acceptance (LOA) dated 26.11.2010 in favour of PDL.

6. Further, PDL incorporated respondent No.2 as a Special Purpose Vehicle (SPV), for execution of the Project. PDL furnished a Performance Bank Guarantee in the sum of Rs. 82,57,55,000/- (Rupees Eighty Two Crores Fifty Seven Lakh Fifty Five Thousand Only) for due performance of the Project on 30.05.2013. Thereafter, the parties entered into the Development Agreement (Agreement) on 31.05.2013.

7. The payments in terms of the RFP were linked with the date of issuance of the LOA and the lease premium was to be paid in six installments (Four instalments of 20% of the lease premium and balance two installments of 10% of the lease premium). Accordingly, the first instalment was required to be paid within 90 days from the date of issuance of LOA; the second instalment was to be paid within the period of 18 months from the date of payment of 1st installment; the third installment was payable within thirty months of the first installment; and, the fourth, fifth and sixth installments were payable within forty-eight months, fifty four months and sixty months, from the due date of payment of the first installment, respectively.

8. As per the mutually agreed terms, the respondent paid an aggregated sum of Rs. 665,80,27,505/- (Rupees Six Hundred Sixty Five Crores Eighty Lakhs Twenty Seven Thousand Five Hundred and Five Only) towards the first two installments of the lease premium along with interest as a pre-requisite of the Agreement. Thereafter, on 22.08.2013, a further sum of Rs. 478,93,79,000/- (Rupees Four Hundred Seventy Eight Crores Ninety Three Lakhs and Seventy Nine Thousand Only) was to be paid to the appellant towards the third installment of the lease premium. The abovementioned amount also included a sum of Rs 148, 63,59,000/- (Rupees One Hundred Forty Eight Crores Sixty Three Lakhs Fifty Nine Thousand Only) towards the interest at the rate of 15% per annum in terms of Article 9.2 of the Agreement. Additionally, a payment of Rs.21,91,79,408/- (Rupees Twenty One Crores Ninety One Lakhs Seventy Nine Thousand Four Hundred