Back
2020 Supreme(Del) 280
IN THE HIGH COURT OF DELHI AT NEW DELHI
JYOTI SINGH, J.
Guru Gobind Singh Indraprastha University - Petitioner
Versus
Engineers India Ltd. - Respondent
O-M-P- (COMM) 413 of 2018
Decided On : 13-03-2020
For the Petitioner:Mr. Mukul Talwar, Sr. Advocate with Ms. Anita Sahani, Advocates.
For the Respondent:Mr. Uday Gupta, Mrs. Shivani Lal, Mr. M.K. Tripathi and Mr. Hiren Dasan, Advocates.
Headnote:Arbitration and Conciliation Act, 1996 - Section 34 Summary: The present petition was filed under Section 34 of the Arbitration and Conciliation Act, 1996, seeking to set aside an arbitral award. The petitioner, a university, challenged the award on the grounds that interest was not granted on their counter claim, the rate of interest awarded to the respondent was too high, and there were calculation errors in the award. The court held that interest could be awarded on a claim for damages and set aside the rejection of interest on the counter claim. The court also upheld the calculation of amounts due under a reduction in plinth area claim and the award on claim (d) of the respondent. The court emphasized that the scope of interference under Section 34 is limited and that the arbitrator's interpretation of the contract and findings of fact should be respected.
JUDGMENT :
JYOTI SINGH, J.
1. Present petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the ‘Act’) for setting aside the Award dated 31.05.2018 rendered by the Arbitral Tribunal whereby the Arbitrator has allowed the claims of the respondent herein and has rejected the counter claims of the petitioner herein except counter claim no.(b). Modification of the Award is also sought against counter claim no.(b).
2. The facts that need mention for deciding the present petition are that the petitioner is a University and the respondent is a Public Limited Company (hereinafter referred to as ‘EIL'). A contract was entered into between the parties on 17.08.2005 whereby EIL was appointed as the Project Management Consultant (PMC) to supervise and oversee the construction of academic and residential buildings and related external development at the University’s, Dwarka Campus in Delhi. The scope of work assigned to EIL included pre and post construction activities, besides supervision during the construction period.
3. In terms of the Agreement, EIL was to commence its activities from 07.07.2005 and the date of completion was 06.11.2008 so as to commence the academic session 2009-2010. It is the case of the petitioner that when the construction work was midway, with five other construction agencies working on the site for whom Engineers India Ltd. was Engineer In-Charge, respondent abandoned the work on 01.08.2009.
4. Disputes having arisen between the parties, the Arbitral Tribunal was constituted. EIL made the following claims :
| (a) | Delay in pre-construction activities | Rs.47,30,000/- (Rupees Forty Seven Lakhs Thirty Thousand only). |
| (b) | Refloating of tender for package | Rs. 2,20,000/- (Rupees Two Lakhs Twenty Thousand Only). |
| (c) | Reduction of plinth area | Rs.1,22,30,000/- (Rupees One Crores Twenty Two Lakhs Thirty Thousand only). |
| (d) | Working beyond contract period | Rs.1,60,46,640/- (Rupees One Crore Sixty Lakhs Forty Six Thousand Six Hundred Forty only). |
| (e) | Fifteen percent profit on a, b & d | Rs.31,49,000/- (Rupees Thirty One Lakhs Forty Nine Thousand only) |
| (f) | Interest @ 18% per annum | Rs.3,45,00,100/- (Rupees Three Crores Forty Five Lakhs One Hundred Only). |
|
| Total | Rs.7,08,77,000 (Rupees Seven Crores Eight Lakhs Seventy Seven Thousand Only). |
5. Petitioner raised the following Counter Claims:-
1. Extra cost incurred by the Respondent University in getting the balance work done from another agency-Rs.2.933 Crores.
2. Damages/Losses suffered by the Respondent University due to delay in shifting of the University to new campus-Rs. 6,46,43,351/- (Rupees 6.46 crores).
3. Damages suffered by the Respondent University due to improper supervision of work Rs.47,94,576/-.
4. Damage/Losses suffered by Respondent University due to the illegal and unauthorized occupation of the site offices by the Claimant Company- Rs. 1,92,000/-.
5. Damages/Losses suffered by the Respondent University on account of delay in handing over the records by the Claimant Company-Rs. 3,84,000/-.
6. Interest
7. Costs.
6. The Arbitrator rendered its Award on 31.05.2018 and awarded a total sum of Rs. 78.37 Lakhs to EIL under 5 claims and also pendente lite interest @ 12% p.a. from 14.07.2010 to 30.05.2018.
7. With respect to the Counter Claims, the Tribunal awarded a sum of Rs.45,50,046/- to the petitioner under Counter Claim No. 2. However, no interest was granted to the petitioner on the said amount as claimed under Counter Claim No. 6. The total amount due under the Award to EIL is Rs.1,52,49,000/- and the amount due to the petitioner under Counter Claim No. 2 is Rs.45,50,046/-. Thus, the net amount payable under the Award to the respondent is Rs.1,06,98,954/-. The petitioner on receipt of the Award observed certain calculation errors and
