JUDGMENT :

Prayer: This Petition has been filed under Section 34 of the Arbitration and Conciliation Act, 1996 praying to set aside the Award of the Arbitration dated 07.01.2016 arising out of the argument No.TBM/SG/CN/337/1/87 /CONT/VRI-ATUONT/VRI-ATU dated 27.10.2005 entered into between the Petitioner and the second Respondent as far as the scaling down of the claims of the Petitioner (1) Escalated costs & (2) Cost towards additional works carried out are concerned and set aside the other 4(four) claims of the Petitioner viz., Final bill amount, cost towards the safeguarding of materials during the extended period of contract, disallowing the recovery towards non-return of materials and interest for the various amounts to be awarded from the date of their falling due.

1. The claimant before the Arbitral Tribunal is the Petitioner herein. An Arbitral Award dated 07.01.2016(the Award) is assailed under Section 34 of the Arbitration and Conciliation Act, 1996(the Arbitration Act).

2. The Petitioner was awarded a contract in relation to signalling arrangements at Vridhachalam, Mukhasaparur, Kuttakudi, Pukkiravari, Chinnasalem, Talaivasal and Attur Stations, including LC gates in connection with gauge conversion work on VRI-SA section under Letter of Acceptance dated 01.08.2005 and Agreement dated 27.10.2005. The total contract value was a sum of Rs.2,50,22,267/-. The work was required to be completed within a period of six months from the date of the Letter of Acceptance, i.e. on or before 31.01.2006. According to the Petitioner, the Respondents did not make the site available for execution of work by the Petitioner. Consequently, the Petitioner was constrained to seek extensions of time. Such extensions were granted by the Respondents by way of rider agreements under Clause 17-A(ii) of the General Conditions of Contract. Eventually, the project was commissioned for passenger traffic on 18.11.2007 and physical completion of works in all aspects was achieved by 24.01.2008. The work was inspected between March and August 2008, and the final measurements were recorded in May 2009. In view of the fact that disputes arose between the parties with regard to amounts due and payable to the Petitioner for execution of work, an Arbitral Tribunal was constituted.

3. Before the Arbitral Tribunal, the Petitioner made seven claims. These claims were: a claim of Rs.32,72,000/- towards price variation or escalation; a claim of Rs.1,64,855/- towards additional work; a claim of Rs.12,51,121/- towards release of Bank Guarantee; a claim of Rs.5,04,000/- towards charges for safeguarding materials at the Petitioner’s work site; a claim of Rs.3,17,865/- towards refund of amounts deducted from the final bill; interest at 18% per annum on the final bill amount and on the other claims; and release of the final bill amount of Rs.35,23,276/-. The Respondents filed a reply statement refuting the claims made by the Petitioner. Upon examining the pleadings, the Arbitral Tribunal framed six points for determination. Both parties adduced documentary evidence before the Arbitral Tribunal. The Petitioner herein exhibited 16 documents, which were marked as Ex.C1 to C16. The Respondents exhibited 27 documents, which were marked as Ex.R1 to R27. As regards the claim for escalation, the Arbitral Tribunal awarded a sum of Rs.2,00,000/-. As regards the deduction made by the Respondents, the claim of the Petitioner was rejected. As regards the claim for additional work, a sum of Rs.50,000/- was awarded. The claim towards charges for safeguarding materials was rejected. The Bank Guarantee was ordered to be returned to the Petitioner. The interest claim was rejected. In sum, the Arbitral Tribunal directed the Respondents to pay a sum of Rs.2,50,000/- to the Petitioner within 30 days from the date of receipt of the Award, failing which to pay interest at 18% per annum thereon from the date of Award till the date of payment.

4. The Petitioner assailed the Award by contending th