The arbitration awards must only address claims within the contractual framework; arbitrary or excessive costs cannot be imposed against a party prevailing in the challenge to non-arbitrable claims.

JUDGMENT

Gaurang Kanth, J. By a common order dated order dated 23.08.2018, this court had disposed of the above captioned appeal as well as the appeal preferred by the respondent [FAO(OS)(COMM) 197/2017] against an order dated 14.09.2017 passed by the learned Single Judge. In OMP (COMM) 317/2017. The present appeal was taken up for hearing pursuant to the order dated 17.01.2020 passed by this Court, whereby the appellant's review petition (Review Petition No. 348/2018) seeking review of the order dated 23.08.2018 was allowed. The appellant had sought review of the said order dated 23.08.2018 on the ground that its challenge to rejection of counter-claims was not considered. The respondent has also filed a petition seeking review of the said order dated 23.08.2018 (Review Petition No. 361/2018), which was confined to setting aside the award of costs. This Court had disposed of the said petition by observing that the said aspect of costs would be considered at the time of disposal of the appeal.

2. The Learned Single Judge of this Court, vide order dated 04.09.2017 ("Impugned Order") in OMP (COMM) 317/2017 captioned as "Indian Oil Corporation Limited Pipelines Division (PLHO) Vs Institute Of Geo-Informatics Pvt. Ltd." had partly allowed the application filed by the Appellant under Section 34 of the Arbitration & Conciliation Act, 1996 Act ("A&C Act") seeking to set aside the arbitral award dated 05.05.2017 ("Impugned Award").

3. Aggrieved by the said Impugned Order, both the parties filed separate Appeals, i.e., FAO (OS) (Comm) 189/2017 titled as Indian Oil Corporation Ltd. Vs Institute of Geo Informatics Pvt. Ltd. & FAO (OS) (Comm) 197/2017 titled as Institute of Geo Informatics Pvt Ltd Vs Indian Oil Corporation Ltd.. The Division Bench of this Court vide Judgment dated 23.08.2018, was pleased to allow FAO (OS) Comm) 189/2017 to the extent of setting aside the award of costs, and dismiss FAO (OS) (Comm) 197/2017.

4. Subsequently, both the parties filed Review Petitions for reviewing the Judgment dated 23.08.2018. The Appellant filed Review Petition No.348/2018 and the Respondent filed Review Petition No. 361/2018. This Court vide order dated 17.01.2020 allowed the Review Petition No.348/2018 to a limited extent holding, inter alia, as follows:

"For the aforesaid reasons, we allow the review petition to the extent that this Court did not deal with the appellant's submissions qua the non-consideration by the learned Single Judge of the appellant's objections to the rejection of the counter claim by the learned Arbitrator."

This Court disposed of the Review Petition No.361/2018, inter alia, observing as follows:

"We dispose of this review petition by observing that the aforesaid aspect would be considered by the Court at the stage of disposing of the appeal on the aspect on which the judgment dated 23.08.2018 stands reviewed."

FACTUAL MATRIX RELEVANT FOR THE DISPOSAL OF THE PRESENT APPEAL ARE AS FOLLOWS:

5. Before proceeding further with the analysis, it will be apposite to refer to the relevant facts necessary to address the controversy raised in the present appeal.

6. The Appellant is a Government of India undertaking engaged in petroleum refining, marketing and transportation and maintenance of crude and petroleum products pipelines throughout the length of the country. For the laying of one such LPG pipeline, the Appellant required certain detailed surveys to be carried out. For this purpose, the Appellant invited sealed tenders on 19.11.2009.

7. Pursuant to the Respondent being declared as the successful bidder, a Letter of Acceptance dated 15.06.2010 ("LOA") was issued to the Respondent which was followed by execution of the main Contract No. PLCC/PHDPL/CL/0960 (Work Order No. 23166768) on 14.07.2010. The Contract envisaged execution of work of "Detailed Engineering survey, Soil survey, Cadastral survey & providing services for establishing ROU in ROW of Paradip-Haldia-Durgapur LPG Pipeline Project" (TENDER NO. P