Location: ORISSA HIGH COURT, CUTTACK Date: 24-Mar-2026 16:52:38 IN THE HIGH COURT OF ORISSA AT CUTTACK ARBA No.35 of 2019 Along with ARBA No.37 of 2019 (In the matters of Appeals under Section 37 of the Arbitration and Conciliation Act, 1996)

(In ARBA No.35 of 2019)

M/S Abhoy Charan Bakshi …. Appellant(s)

-versus-

State of Odisha & Ors. …. Respondent (s)

Advocates appeared in the case through Hybrid Mode:

For Appellant (s) :

Mr. Nilakanthar Jujharsingh, Adv.

For Respondent (s) : Mr. Sonak Mishra, ASC.

(In ARBA No.37 of 2019)

State of Odisha& Ors. …. Appellant (s)

-versus-

M/S Abhoy Charan Bakshi …. Respondent (s)

Advocates appeared in the case through Hybrid Mode:

For Appellant (s) : Mr. Sonak Mishra, ASC.

For Respondent(s) :

Mr. Nilakanthar Jujharsingh, Adv.

Location: ORISSA HIGH COURT, CUTTACK Date: 24-Mar-2026 16:52:38 CORAM:

DR. JUSTICE SANJEEB K PANIGRAHI DATE OF HEARING:-07.03.2026 DATE OF JUDGMENT:-13.03.2026 Dr. Sanjeeb K Panigrahi, J.

1. Since both the appeals arise out of arbitral award relating to the contract executed by the same party and involve common questions concerning the scope of interference under Sections 34 and 37 of the Arbitration and Conciliation Act, 1996 (for short “the Act”), they are taken up together and are being disposed of by this common judgment.

2. The present appeals arises out of judgment dated 12.9.2019 passed in ARBP No.161 of 2017, wherein the learned District Judge, Dhenkanal partly allowed the said application and set aside the award in respect of refund of royalty amounting to Rs.61,17,354/-, while affirming the remaining claims allowed by the Arbitrator. Aggrieved by the interference with the award on that limited aspect, the contractor as well as the State have preferred the present appeals under Section 37 of the Act. However, for the sake of convenience and effective adjudication, ARBA No.35 of 2019 is treated as the lead case.

I. FACTUAL MATRIX OF THE CASE:

3. The dispute traces its origin to a contract awarded by the Government of Odisha for execution of irrigation infrastructure works. The Chief Engineer and Basin Manager, Brahmani Left Basin, Samal, Angul, on behalf of the Government, invited item-rate bids Location: ORISSA HIGH COURT, CUTTACK Date: 24-Mar-2026 16:52:38 for the work described as “Balance work for construction of structured system in the command area of Bhairpur Branch Canal with provision of minors and sub-minors including all structures of Baruan Distribution System of O.E.C.F. Package No.12(E)”.

4. The appellant contractor participated in the tender process and submitted its bid for execution of the said work. Upon evaluation of the bids received, the bid of the appellant was accepted by the authorities through Letter No.3000 dated 22.5.2008. Consequent upon acceptance of the bid, a formal agreement was executed on 16.6.2008 between the Governor of Odisha acting through the Executive Engineer, OECF Division No.III, Jiridamali, and the appellant contractor.

5. Under the said agreement, the work was registered as Agreement No. LCB-I of 2008–2009 and the total contract value was fixed at Rs.10,32,97,050/-. The contract stipulated that the work would commence on 16.6.2008 and would be completed within a period of twenty-four months, the scheduled date of completion being

15.6.2010.

6. The nature of the work primarily involved excavation of earth, transportation of the excavated material, and formation of canal embankments as part of the irrigation infrastructure. Among the various items of work incorporated in the Bill of Quantities, Item No.5 related to “Earth work in canal embankment”. For this item the appellant quoted a rate of Rs.60/- per cubic metre, which was Location: ORISSA HIGH COURT, CUTTACK Date: 24-Mar-2026 16:52:38 accepted by the departmental authorities at the time of finalization of the contract.

7. According to the appellant, prior to submission of bids a pre-bid meeting was convened by the departmental authorities to clarify the scope and conditions of the work. It is