JUDGMENT

1. The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as “the A&C Act”) assails an arbitral award dated 06.09.2013.

2. Vide the impugned award, the arbitral tribunal has awarded a sum of Rs.14.67 crores in favour of the respondent herein towards refund of fixed transportation charges proportionate to the reduced supply of gas by GAIL under the Contract dated 10.09.1991, as amended on 30.03.1998, with interest at the rate of 6% per annum from 29.12.2000 till date of payment. Further, the award contemplates that in the event of failure on the part of the petitioner herein to satisfy the award within a period of three months from the date thereof, the respondent (claimant) shall be entitled to recover the awarded sum from the date of the arbitral award with interest at the rate of

18% per annum until payment/realization.

3. The respondent (claimant) operates a sponge iron and hot rolled plant located at Dolvi in the District of Raigharh, Maharashtra.

4. It was averred in the statement of claim that in order to meet its requirement for gas, the claimant entered into a Contract dated 10.09.1991 with the petitioner herein. Article 4 of the said Contract is in the following terms:-

“ARTICLE - 4 DELIVERY OF GAS

4.01 GAS shall be delivered to the BUYER at the Gas Metering Station that shall be located at BUYER's premise at village Juybapuji, Pen Tehsil in the district of Raigad in the State of Maharashtra, GAS will be transported from the down stream flange of the pipeline at the outlet of the GAS Metering Station hereinafter referred to as point of delivery by means of pipeline to be provided and maintained by the BUYER.

4.02 Gas Metering Station and buildings needed for the same shall be set up / constructed and maintained by the SELLER. The land indeed for the purpose of such Gas Metering Station/Building shall be provided by the BUYER. The SELLER may use the said location for effecting deliveries to any other parties in the area without affecting supply of GAS to the BUYER.

4.03 The BUYER, in addition to price of GAS mentioned in Article 11, shall pay to the SELLER transportation charges @ Rs. 60.60· (Rupees Sixty and paisa sixty only) per thousand standard cubic meter for Uran - Thal sector of pipeline of the SELLER. Further the BUYER shall pay monthly transportation/service chares to be worked out on the basis of formula at Annexure III which forms, part of the CONTRACT for the facilities to be provided by, the SELLER for supply of GAS from Thal to the deliver point located at the BUYER's premises. The transportation/ service charges shall be increased by 3 (Three) percent per annum on annual rest basis with effect from 01.04.1993. In addition, these monthly transportation/service charged are also subject to revision as and when corporate income tax is revised. The formula indicated in Annexure III incorporates Corporate Income Tax at 46%.

4.04 The BUYER shall make all proper and adequate arrangement for receiving GAS at the outlet of Gas Metering Station at its own risk and cost. Should any defect in the BUYER's intake arrangement arise, the same shall be notified by the BUYER.

4.05 For effective deliveries as aforesaid the SELLER shall install and maintain at its own risk and cost the piping control and regulation and metering equipment in the aforesaid Gas Metering Station and all other accessories to condensate collection and disposal. The said equipment so installed by the SELLER shall remain the property of the SELLER and the SELLER shall have the right to remove such equipment at any time within twelve (12) months after the expiry of the contract. The SELLER shall have the right to use the BUYER's land and utilities essentially required for installation, operation and maintenance of Gas Metering Station and allied equipment required for supply of gas on payment of such charges for utilities only as may be mutually agreed.

4.06 The title of GAS shall pass from the SEL