IN THE HIGH COURT OF JUDICATURE AT MADRAS ORDER RESERVED ON : 02.12.2025 ORDER PRONOUNCED ON : 04.12.2025 CORAM THE HONOURABLE MR. JUSTICE N.ANAND VENKATESH Arbitration Original Petition (Com.Div.) No.137 of 2021 M/s.Chendur Associates Plot No.28, Mullai Nagar, Suramangalam, Salem - 636 005.

Residing at Door No.39-409-H7 Mullai Nagar, Suramangalam, Salem - 636 005, Salem District, Tamil Nadu.

Petitioner Vs

1.The Union of India, represented by the General Manager, Southern Railway, Chennai 600 003.

2.The Chief Engineer/Construction, S&RB, Office of the Chief Administrative Officer [Construction], Southern Railway, Egmore, Chennai - 600 008.

3.The Deputy Chief Engineer/Construction, Southern Railway, Tambaram, Chennai - 600 045.

Respondents Arbitration Original Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, praying to set the Award dated 14.10.2020 passed by the Arbitral Tribunal to the extent, as aggrieved by the petitioner herein, in respect of arbitral proceedings between the petitioner and the respondent.

For Petitioner : Mr.P.J.Sri Ganesh For Respondents : Mr.P.T.Ramkumar, Standing Counsel *****

ORDER

The petitioner is the claimant and the petitioner has filed this petition under Section 34 of the Arbitration and Conciliation Act, 1996 [for brevity ‘the Act’] challenging the award passed by the Arbitral Tribunal dated 14.10.2020 insofar as the rejection of claim Nos.9 to 12, 14 and 15 made by the petitioner.

2. The case of the petitioner is that the Southern Railway called for bids for the proposed new BG Track between Tindivanam and Nagari (via) Walajah Road – Proposed Construction of Major Bridges, Foundations, Substructures & Superstructures to the following spans:

a) Clear span of 3x18.30m PSC ‘U’ TYPE Girder at CH:34590 (SUKA RIVER)

b) Clear span of 4x12.20m PSC ‘U’ TYPE Girder at CH:35981 c) Clear span of 2x12.20m PSC ‘I’ TYPE Girder at CH:35169.62 between TELLAR and VANDAVASI d) Clear span of 2x12.20m PSC ‘I’ girder at CH:60000.41 between CHEYYAR and IRUNGUR e) Clear span of 3x12.20m PSC ‘I’ girder at CH:85548.78 f) Clear span of 2x12.20m PSC ‘I’ girder at CH:105614.08 between THIMIRI and ARCOT in TINDIVANAM-NAGARI Section.

3. The petitioner participated in the bid and was declared as a successful bidder and Letter of Acceptance [for brevity ‘LOA’] dated 22.03.2012 was issued by the respondent and the contract was awarded to the petitioner for a contract value of Rs.6,85,37,773/-. Thereafter, an agreement was entered into between the parties on 12.07.2012. Subsequently, the contract value was also revised to Rs.7,32,87,528/- by way of a rider agreement dated 17.11.2016.

4. The scheduled period of contract was for 11 months from the date of issuance of LOA i.e. by 21.02.2013, but it was extended for nearly

67 months until it was foreclosed on 30.08.2018.

5. The specific case of the petitioner is that there were major impediments/ hindrances faced by them, which prolonged the project due to (a)Delay in approving designs & drawings (b)Delay due to variations in original work (c)Delay in furnishing centre line and temporary bench mark (d)Delay in clearing hindrances (e)Delay in handing over work site (f)Delay due to entrustment of new work.

6. The further case of the petitioner that delay in execution of the project was solely attributable to the Southern Railway and the petitioner has to face extreme hindrance and bottlenecks at various stages. Hence, the petitioner requested the Railways to foreclose the contract owing to indefinite extension of period and finally, on 03.09.2018, the contract was foreclosed. The work experience certificate was issued on 19.09.2018. However, no payment was made towards final bill and the monies retained towards Bank Guarantee, security deposit etc. was also not released. In view of the same, the petitioner, vide its letter dated

25.10.2019 invoked the arbitration clause and an Arbitral Tribunal was also constituted.

7. The petitioner made various claims before the Arbitra