JUDGMENT :

Prayer : This Petition has been filed under Section 34(2)(iv) of the Arbitration and Conciliation Act, 1996 praying to set aside the Award dated 16.06.2019 received on 17.06.2019 passed by the Arbitral Tribunal in the dispute arising out Contract Agreement dated 07.07.2015.

1. The respondent before the Arbitral Tribunal is the Petitioner herein. By this petition, the Petitioner assails the Arbitral Award dated June 17, 2019 (the Award) under Section 34 of the Arbitration and Conciliation Act, 1996 (the Arbitration Act).

2. A tender was floated by the Petitioner for providing visual elearning solutions for engineering graduates. The tender consisted of two parts, namely, a technical bid and financial bid. The respondent was the successful bidder and was awarded the Firm Order dated April 27, 2015. The Firm Order was to be implemented in two stages: the first stage involving design, development and delivery of e-learning solutions in DVD for 150 subjects at the rate of Rs.5.8 lakhs + taxes per subject; and the second stage involving implementation in the internet server of the Respondent at Rs.40/- + taxes per student per year and intranet servers installed at affiliated colleges at Rs.20/- + taxes per student per year.

3. Pursuant to the above mentioned Firm Order, after presentations were made by the Respondent before representatives of the Petitioner, an Agreement dated July 07, 2015 (the Agreement, Ex.C-4) was executed. The Agreement imposed an obligation on the Respondent to provide visual e-learning solutions for 150 subjects to students of the four year engineering degree programme. Shortly thereafter, the Respondent delivered visual e-learning solutions for 23 subjects in July 2015. Elearning solutions for a further 9 subjects were delivered in August 2015. In total, e-learning solutions for 32 subjects were delivered by the Respondent and received by the Petitioner. The Respondent also submitted an invoice dated August 12, 2015 for Rs.60,83,040/- (Ex.C-8) towards stage one of the delivery of 23 subjects at 40% of the total amount payable in such regard. Invoice dated December 21, 2015 was submitted a little later for a sum of Rs. 23,90,760/- (Ex.C-11) for the 9 subjects that were delivered in August 2015. Two further invoices, both dated March 24, 2017 for Rs.85,37,600/- and Rs.21,34,400/-(collectively Ex.C-11), respectively, were submitted towards the second installment of 40% and the third installment of 10%, respectively, for the above mentioned 32 subjects. All the above 4 invoices referenced Clause 6.2.1(d) of the Agreement. Thus, the Respondent submitted invoices for 90% of the price of e-learning solutions for 32 subjects.

4. Meanwhile, a meeting of the Committee for Development and Delivering of 3D Visual E-Learning Solutions For Undergraduate Engineering Programmes of the Affiliated Colleges of Pondicherry University (the Committee) was held on December 16, 2015. At such meeting, the Committee noted that the reports received for seven subjects indicated that “the materials had several defects and had scope for improvement.” As regards payment, the Committee recorded that it was informed that a recommendation had been made in the meeting of the principals held on June 25, 2015 to collect Rs.1000/- per student. At the next meeting of the Committee on December 29, 2015, the Committee reiterated that the report from the Coordinators indicated that the seven subjects, which were reviewed at the first level were not up to the acceptable level. As regards the other 16 subjects, it was recorded that the University has to identify subject experts. The Committee also decided to put on hold the request for receipt of materials for the second and fourth semester.

5. According to the Respondent, it developed e-learning solutions for a further 85 subjects at a price of Rs.4,93,00,000/-, which was computed and claimed in arbitration at the contractual price of Rs.5,80,000/- per subject. Thus, the Respondent asserted that