* IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 19^th MARCH, 2026 IN THE MATTER OF:

+ O.M.P. (COMM) 404/2020 & I.A. 3167/2020, I.A. 7887/2025, I.A.

28279/2025 MMTC LIMITED .....Petitioner Through: Mr. Akhil Sachar, Ms. Sunanda Tulsyan, Ms. Babita Rawat, Ms.

Kashish Maheshwari, Advs.

versus M/S KNOWLEDGE INFRASTRUCTURE & ANR. .....Respondents Through: Mr. Darpan Wadhwa, Sr. Advocate with Ms.Manali Singhal Adv and Mr Santosh Sachin Adv and Ms. Tarini Khurana Adv CORAM:

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

JUDGMENT

1. The instant petition is filed under Section 34 of the Arbitration & Conciliation Act, 1996, challenging an Award dated 07.11.2019 passed by the Sole Arbitrator in the arbitration proceedings between the Petitioner and the Respondents.

2. Shorn of unnecessary details, the facts leading to the filing of the instant petition are as follows:-

i. Damodar Valley Corporation required supply of non-cooking steam coal for its thermal power stations situated at Koderma, Mejia and Durgapur.

ii. Damodar Valley Corporation entered into an agreement with the Petitioner herein on 27.07.2012 for supply of non-cooking steam coal to its thermal power stations at Koderma, Mejia and Durgapur. The scope of work under the contract included arranging vessels, stevedoring, handling, storage port clearances, arranging railway rakes etc. at the various power stations for which coal was required.

iii. The Petitioner, thereafter, issued a Notice Inviting Tender (NIT)

for the procurement of imported non-cooking steam coal on ‘Freight on Road (FOR) Destination Basis’ to the thermal power stations of the Damodar Valley Corporation. Respondent No.1 was declared as one of the successful bidders.

iv. The Petitioner, Respondent No.1 and Respondent No.2 entered into a tripartite agreement on 01.08.2012 for the supply of 1.119 metric tonnes of imported non-cooking steam coal to the thermal power stations under the Damodar Valley Corporation.

v. As per the tripartite agreement, the Respondent No. 1 had to arrange for stevedoring, handling, clearing, storage, port clearances, arranging railway rakes, loading, transporting and delivering at the Damodar Valley Corporation Power Stations.

vi. The tripartite agreement provided that all activities such as forwarding and clearing of consignments, customs clearance etc. was in the scope of work of the Respondents. The NIT and the terms and conditions stipulated therein form a part of the tripartite agreement.

vii. It is the case of the Respondents that they have duly performed their obligations under the tripartite agreement in a timely manner. Disputes arose between the parties in the matter of payment. Since the agreement provided that the disputes were to be resolved through arbitration, an Arbitral Tribunal, comprising of Sole Arbitrator, was constituted. The following claims were raised by the Respondents before the Arbitral Tribunal:-

viii. The learned Arbitrator awarded a sum of Rs.2,51,85,670/- to the Respondents for contractual payment towards stevedoring, handling, clearing and forwarding charges. The learned Arbitrator awarded a sum of Rs. 1,64,38,456/- towards railway surcharge which was retained by the Petitioner and a sum of Rs. 56,93,579/- towards railway detention charges which were also retained by the Petitioner. The Petitioner had approached this Court challenging these three amounts i.e., Claim Nos. 1, 3 and 4 which have been awarded against the Petitioner and in favour of the Respondents/Claimants.

3. It is an admitted case of the Petitioner that Claim No.1 which is towards stevedoring, handing, clearing and forwarding charges and Claim No.5 which is for withholding the amount towards entry tax stand already paid and therefore this case is restricted only to Claim No.3 and 4.

4. Claim No.3 is towards railway surcharge for the sum of Rs.1,64,38,456/- and Claim No.4 is for an amount of Rs.56,93,579/- towards detention charges of adjustment of overloaded wagons.

5. It is the case of the Petitione