Court highlighted that interference with arbitral awards is limited, asserting that awards cannot be set aside merely due to merits but only if arbitrary, confirming the Arbitral Tribunal's authority in evidentiary evaluation.

JUDGMENT

Vibhu Bakhru, J. Delhi Metro Rail Corporation (hereafter `DMRC'), the petitioner in O.M.P. (COMM) 513/2020 and N.S. Publicity Pvt. Ltd. (hereafter `NSP'), the petitioner in O.M.P. (COMM) 470/2020, have challenged an Arbitral Award dated 03.09.2019 passed by the Arbitral Tribunal comprising of a Sole Arbitrator (hereafter `the Arbitral Tribunal') under Section 34 of the Arbitration and Conciliation Act, 1996 (hereafter the `A&C Act'). The said award was corrected by the Arbitral Tribunal under Section 33 of the A&C Act by an order dated 21.11.2019. The award as corrected is hereinafter referred to as `the impugned award'.

2. The impugned award has been rendered in the context of disputes that had arisen between the parties in relation to a contract for "Outdoor Advertising rights on the civil structures of underground section from Udyog Bhawan to Saket and elevated section from Qutub Minar to Guru Dronacharya Station (excluding)".

3. The Arbitral Tribunal partly allowed the claims made by NSP and the counter-claims made by DMRC.

4. DMRC assails the impugned award on the ground that the said award is against the public policy of India. It contended that the Arbitral Tribunal while allowing Claim nos. 1, 2, 3 and 5 in favour of NSP had failed to appreciate the relevant provisions of The Limitation Act, 1963. It is contended that the impugned award is perverse and contrary to the terms and conditions of the License Agreement and thus, is liable to be set aside.

5. NSP has also filed a petition, O.M.P. (COMM) 470/2020, objecting the impugned award to the extent that its claims were rejected.

6. Briefly stated, the relevant facts necessary to address the controversy are as under:

6.1. DMRC is a limited company engaged in providing Mass Rapid Transit System in the National Capital Region. In 2010, DMRC invited tenders for letting out of the "Outdoor Advertisement rights on the Civil Structures of Underground Section from Udyog Bhawan to Saket and Elevated Section from Qutub Minar to Guru Dronacharya Station".

6.2. NSP participated in the said tender and submitted its offer dated 29.07.2010, which was subsequently modified by a letter dated 08.11.2010. NSP quoted an amount of Rs.6,62,40,000/- (Rupees Six Crores Sixty-Two Lacs and Forty Thousand) per annum.

6.3. The said tender was accepted and, on 10.12.2010, the Letter of Acceptance (hereinafter the `LoA') was issued to NSP setting out the broad terms of the License Agreement. NSP was requested to sign the License Agreement within seventeen days of the issuance of LOA. Pursuant to the LoA, the parties executed a License Agreement on 20.05.2013.

6.4. The term of the license was for a period of five years starting from the date of commencement of License Fee. In terms of Clause no. 5 of the Tender Application Form, the License Fee would commence thirty days from the date of issue of first approval of the plans for 960 sqm. advertisement space by DMRC.

6.5. As per the terms of the LoA, NSP was requested to pay the following amount within fifteen days from the date of issuance of the said letter.

6.6. NSP submitted six cheques for an aggregate amount of Rs.6,72,54,846/- towards - (i) Interest Free Security Deposit amo