The court reaffirmed the need for parties to substantiate claims with primary evidence in arbitration proceedings while respecting the arbitrator's discretion unless a clear patent illegality is proven.

JUDGMENT

Vibhu Bakhru, J.

1. The aforesaid petitions are cross petitions under Section 34 of the Arbitration & Conciliation Act, 1996 (hereafter the `A&C Act') impugning the Arbitral Award dated 24.09.2019 (hereafter the `impugned award') rendered by an Arbitral Tribunal constituted of Justice (Retd.) V.K. Gupta as the Sole Arbitrator (hereafter the `Arbitral Tribunal').

2. The impugned award was rendered in the context of the disputes that have arisen between the parties in connection with an Agreement dated 01.05.2012, whereby Armtech (India) Limited [petitioner in OMP(COMM) No.20/2020 - hereafter referred to as `Armtech'] had agreed to execute the works relating to the "External Development and External Services for 100 Type B and 20 Type D Houses at Gain Gaon, Dibiyapur, Auraiya, Uttar Pradesh".

3. GAIL (India) Limited [petitioner in OMP(COMM) No.33/2020 - hereafter referred to as `GAIL'], is a Government of India undertaking, inter alia, engaged in the business of distribution of natural gas, liquid hydrocarbons, LPG, manufacturing of petrochemicals etc. One of GAIL's manufacturing unit is located at Gail Gaon, Dibiyapur, District Auraiya, Uttar Pradesh.

4. GAIL issued a tender [bearing Tender No. GAIL/PA11/35611/3300043656/SKG (E-bid No.8000003712] inviting bids for executing the works of external development and external services for 100 Type B and 20 Type D houses at Gail Gaon.

5. Pursuant to the aforesaid tender, Armtech submitted its bid. Armtech was declared as the successful bidder and accordingly GAIL issued a Fax of Acceptance (FOA) dated 01.02.2012. In terms of the FOA, the estimated value of the Contract was fixed at Rs.17,47,91,942.51/-. The works in question were to be executed within a period of fifteen months commencing from the seventh day of the issuance of the FOA dated 01.02.2012.

6. On 03.02.2012, GAIL handed over the site in question to Armtech. Thereafter, on 28.03.2012, GAIL issued a Letter of Acceptance (LOA) awarding the Contract for executing the works in question to Armtech. The LOA issued by GAIL also included the Schedule of Rates and the description of the works to be performed by Armtech. Thereafter, on 01.05.2012, the parties entered into a formal agreement (hereafter `the Contract').

7. In terms of the Contract entered into between the parties, Armtech furnished a Bank Guarantee dated 28.04.2012 for a sum of Rs.1,74,79,200/-. The stipulated date for completion of the works was 07.05.2013. However, execution of the works was delayed.

8. Armtech sent a letter dated 25.04.2013 to GAIL seeking extension of nine months' time for completion of the works in question. This request of Armtech was acceded to and by a letter dated 06.05.2013, GAIL provisionally extended the time for completion of the Contract till 06.06.2013. Similarly, further extensions were sought by Armtech and the same were granted by GAIL from time to time. GAIL granted the last extension by its letter dated 19.12.2015 extending the terms of the Contract upto 20.02.2016.

9. Since the work was not completed by Armtech within the extended perio