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IN THE HIGH COURT OF DELHI AT NEW DELHI

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O.M.P.No. 161/2003

UNION OF INDIA

..... Petitioner

Through:

Mr.Darpan Wadhwa, Senior CGSC

with Mr.Arnav Kumar, Govt.

Pleader, Ms.Roshini Namboodiry,

Advocate

versus

SAB INDUSTRIES LTD.

..... Respondent

Through:

Mr.Nidhesh Gupta, Sr. Advocate

with Mr.Tarun Gupta, Advocate

CORAM:

HON'BLE MR. JUSTICE V.KAMESWAR RAO

V.KAMESWAR RAO, J.

1. The challenge in this petition by the Union of India under Sections

28, 31, 34 of the Arbitration & Conciliation Act is to the award dated

December 31, 2002 passed by the learned Sole Arbitrator, whereby the

learned Arbitrator has allowed certain claims of the respondent and

rejected/not granted certain counterclaims of the petitioner, whereby he

has awarded a sum of Rs.6,79,52,084.13 with interest @ 12% p.a with

effect from September 1, 1997 to December 31, 2002 amounting to

Rs.4,00,49,812.99 i.e a total sum of Rs.10,80,01,897.12 along with

interest @10% p.a with effect from April 1, 2003.

The facts:

2. The facts in brief are, the petitioner had floated a tender for

construction of accommodation for Army Hospital (R&R) in the Delhi

Cantonment Area. The