The court confirmed that arbitral awards can only be set aside under specific grounds outlined in the Arbitration and Conciliation Act, affirming the validity of the arbitrator's decision regarding liquidated damages.

ORDER

Chandra Dhari Singh, J. (Oral)

I.A. 9357/2021 (Exemption)

Exemption allowed subject to just exceptions.

The application stands disposed of.

O.M.P. (COMM) 214/2021

1. The instant petition under Section 34 of the Arbitration and Conciliation Act, 1996 has been filed on behalf of the petitioner seeking the following reliefs:

"A. Call for the records of the arbitral proceedings in respect of the impugned Arbitral Award dated 10.08.2020 passed by the Ld. Sole Arbitrator;

B. Quash and set aside the Award dated 10.08.2020 to the extent that the Ld. Arbitrator directs refund of the Liquidated Damages amounting to USD 1,46,400 deducted by the Petitioner from the delayed portion of supplies of winches;

C. Quash and set aside the Award dated 10.08.2020 to the extent the Ld. Arbitrator allows Claim No. 1 of the Respondent on account of delay due to deviation in vendor list/makes for bought-out items;

D. Award costs of present proceedings against the Respondent and in favour of the Petitioner..."

2. The Petitioner-ONGC (Respondent in the Arbitral proceedings) has filed the present petition under Section 34 of the Arbitration and Conciliation Act, 1996, aggrieved by the impugned Arbitral Award dated 10th August, 2020 passed by the learned Sole Arbitrator whereby the learned Arbitrator erroneously allowed the Claim No. 1 of the Respondent-UDT (Claimant in the Arbitral proceedings) apropos the refund of the Liquidated Damages amounting to USD 1,46,400 deducted by Petitioner from the delayed portion of supplies of winches. However, the learned Arbitrator has rightly dismissed the Claim No. 2 of the Respondent with respect to the pre-suit Interest in view of Clause 42(6) of the General Conditions of Contract of the Purchase Order.

3. The brief facts of the case are that the Petitioner-ONGC is a Maharatna Public Sector Undertaking (PSU), incorporated in the year 1955, and was converted into a Corporation in the year 1993. It has its registered office at Deendayal Urja Bhawan, Plot No. 5, Nelson Mandela Marg, Vasant Kunj, New Delhi-110070 and is engaged in exploration and production of oil and natural gas. The Petitioner-ONGC floated Tender No. ZNJMC10004 on 26th October, 2010 for procurement of 17 Nos. truck mounted heavy-duty dual skid hydraulic single drum wireline winch units (referred as "wireline winches"). Wireline winches are manufactured for all applications of down hole Production, reservoir and logging services with special features to provide a safe smooth and trouble-free operation. Such Winch Units are generally deployed at oil and gas wells for safe bottom hole operations for using other associated down hole tools to diagnose the health of reservoir for better monitoring of the field and optimization of production. A pre-bid meeting was held on 26th November, 2010, whereby queries submitted by 5 bidders, including the Respondent-UDT, were replied by the Petitioner. It is pertinent to mention that upon a request made by the Respondent during pre-bid discussions, the Petitioner extended the delivery period from 9 months to 12 months in case of the Respondent. Further, no grievance was ever raised by the Respondent with respect to imposition of Liquidated damages in the Tender. The Respondent submitted its bid no. UDT/MKTG/EBID/2010-11/514. The Petitioner issued a Notification of Award (NOA) dated 28th September, 2011 in favour of the Respondent for the procurement of the winch units. Thereafter, on 24th February, 2012, the Purchase Order no. 4010061848 was issued by the Petitioner in favour of the Respondent for