The court established that an arbitral award can be set aside if it lacks intelligible reasoning and fails to assess critical issues, such as the responsibility for delay in contract performance.

ORDER

This is a petition filed by the petitioner under Section 34 of the Arbitration and Conciliation Act, 1996 (for brevity, the Act) against the award dated 30.9.2021 passed by the sole Arbitrator.

2. Heard both.

3. The case of the petitioner is as follows :

(i) The petitioner participated in the tender called for by the respondent for construction of an administrative building including development works, etc., for constructing a compound wall and for various other works at Composite Regional Centre/National Institute for Mentally Handicapped at Venkatachalam (M), Nellore District, Andhra Pradesh. The work was awarded in favour of the petitioner through letter dated 24.11.2016. The agreement was entered into between the parties and the agreement stipulated that the work must be completed by 24.11.2017. However, the actual date of completion of work was only on 11.2.2019.

(ii) Later, the petitioner raised a final bill for a sum of Rs.11,48,16,841/-. Pursuant to that, some disputes had arisen between the parties during execution and ultimately, the matter landed up before the sole Arbitrator.

(iii) Before the sole Arbitrator, the petitioner made the following claims :

(1) to pay a sum of Rs.8,31,675/- towards difference between ornamental grill and agreement item of MS grills provided for windows;

(2) to grant extension of time upto 11.2.2019 without imposing any levy and to release a sum of Rs.1,00,10,979/-;

(3) to pay a sum of Rs.1,99,46,911/- towards escalated price under Clauses 10C and 10CA of the agreement;

(4) to pay a sum of Rs.33,17,740/- towards GST to be paid to the Government;

(5) to pay a sum of Rs.95,24,688/- towards cost of overhead charges incurred for prolongation period of 444 days;

(6) to pay a sum of Rs.82,50,000/- towards compensation for loss of business;

(7) to pay interest at the rate of 7.5% from the due date of payment of final bill till the actual date of payment and to pay interest at the rate of 18% from the date of payment of final bill till the date of payment of award amount; and (8) to pay a sum of Rs.5 lakhs towards costs of arbitration.

(iv) Before the sole Arbitrator, the respondent raised a defence that the petitioner was expected to start the work on 09.12.2016 and complete the same on 24.11.2017, that a total of 350 days was fixed for the completion of the work, that however, right from the beginning, the petitioner was slow in executing the work, that there was a delay of 444 days in completing the work against the stipulated period of 350 days, that the delay was attributable to the petitioner and that various claims made by the petitioner were not sustainable. Ultimately, the respondent sought for dismissal of the claim petition.

(v) On considering the materials that were relied upon by the learned counsel on either side, the sole Arbitrator passed an award dated 30.9.2021 in the following terms :

(vi) Aggrieved by that, the petitioner is before this Court.

4. The respondent filed a counter to this petition by way of reply wherein they refuted the claims made by the petitioner. Ultimately, the respondent sought for dismissal of this petition.

5. This Court has carefully considered the submissions of the learned counsel on either side and perused the materials available on record and more particularly the impugned award.

6. Even though the lea