The court emphasized that re-evaluation of evidence is beyond the scope of Section 34 of the A&C Act, and the arbitrator's approach on facts is final.

JUDGMENT

Vibhu Bakhru, J. - Indraprastha Gas Limited (hereinafter 'IGL') has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter the 'A&C Act') impugning an arbitral award dated 10.12.2019 (hereinafter 'the impugned award') delivered by the Arbitral Tribunal constituted of Justice (Retd.) Dilip Raoshaeb Deshmukh, former Judge of the Chhattisgarh High Court, as the Sole Arbitrator.

2. Pawan Castings (hereinafter 'the respondent') is a proprietorship concern of Mr. Deepak Dhuper. He is engaged in the business of manufacturing of Aluminium Pressure Dye Castings under the said name. IGL is a company incorporated under the Companies Act, 1956 and is the only supplier of natural gas in Delhi. IGL was the claimant before the Arbitral Tribunal. The impugned award was rendered in the context of disputes that have arisen between the parties in relation to a Gas Sales Agreements (GSAs) dated 10.11.2009 and 1.11.2014. Factual context

3. On 10.11.2009, the parties (IGL and the respondent, Pawan Castings) entered into a Gas Sales Agreement (GSA) under the category of Large Industrial Customer for the supply of Piped Natural Gas (hereafter PNG). IGL agreed to supply 1,56,000 SCM of PNG annually and 500 SCM daily under the aforesaid GSA.

4. Thereafter, on 01.11.2014, the respondent requested IGL to change his category to Small Industrial Customer and executed a fresh GSA (2014 GSA). In terms of the said 2014 GSA, the daily contract quantity of PNG was reduced to 250 SCM per day.

5. On 04.12.2014, officials of IGL, conducted an inspection at the premises of the respondent. IGL alleges that they found unauthorised tapping of PNG and claims that the said officials took photographs and also a video recording of the unauthorised tapping. Thereafter, on 05.12.2014, IGL filed a complaint and pursuant thereto an FIR bearing no. 1425 of 2014 under Sections 336/379 of the Indian Penal Code, 1860 was registered against the respondent. The said FIR recorded that an unauthorised CS/MS pipeline had been laid with the covering of PVC pipe in the factory of the respondent. The said pipeline was connected to the first floor of the factory premises and an unauthorised regulator was installed inside a shelf of a desk. Further, the same pipeline was connected to a downstream pipeline bypassing the meter of IGL. Thus, the respondent had sourced PNG from an unauthorised tapping point.

6. By a notice dated 11.12.2014, IGL terminated the 2014 GSA in terms of Article 25(ii) of the said GSA. It alleged that during the inspection conducted on 04.12.2014, an unauthorised connection in IGL's 32mm MDPE pipeline with continuous high pressure natural gas of 4 bar was found. According to IGL, this amounted to theft of IGL's gas.

7. On 20.12.2014, the respondent responded to the aforesaid letter and denied the allegation that he had tapped IGL's gas pipeline. He stated that PNG was consumed in terms of the GSA and he had not defaulted in making payment of bills. The respondent further requested IGL to resume the supply of PNG with immediate effect as the production was suffering for want of gas supply. He further put IGL to notice that he would claim compensation for any loss caused due to suspension of the supply of gas.

8. On 05.02.2015, IGL sent a notice informing the respondent that the total unauthorised overdrawal quantity of natural gas for the period of April, 2010 till November, 2014 was 347 SQM and raised a provisional demand of Rs.1,52,51,669. The said amount was to be paid within three working days with effect from 09.02.2016.

9. Thereafter, on 14.02.2015, in view of non-payment of the aforesaid amount, IGL invoked the Bank Guarantee of Rs.6,04,050 issued by Canara Bank. On 20.02.2015, the Canara Bank made the payment against the said Bank Guarantee.

10. In view of the disputes between the parties, by a letter dated 12.03.2015, IGL invoked the Arbitration Clauses (Article 15.3 of the GSA dated 10.11.2009 and Article 23(iii)