O R D E R

This Original Petition has been filed, challenging an award dated

02.11.2009, passed by an Arbitral Tribunal constituted of three Arbitrators.

2.For the sake of convenience, 'petitioner' and '1st respondent' will be referred to by their rank in the Arbitral proceedings, i.e., as 'claimant' and 'respondent' respectively.

3.The brief facts of the case would run thus:

3.1.The respondent M/s.Neyveli Lignite Corporation Ltd. is a Central Public Sector Undertaking and it is primarily engaged in mining lignite and generation of electricity using lignite. In the year 2005, the respondent decided to close down Briquetting and Corborandum Plant, erected in 1960's and to dispose of the said plant as a whole in one lot on 'AS IS WHERE IS BASIS' and on 'NO COMPLAINT BASIS'. In January 2005, e-auction notice was issued by M/s.MSTC, which is also a Central Public Sector Undertaking.

E-auction was held on 19th and 20th January 2005. The claimant M/s.Chitrahar Traders became the successful bidder for a value of Rs.70,01,00,019.00. As contemplated under the special terms and conditions of the e-auction, the claimant deposited a sum of Rs.30,00,000/- (Rupees thirty lakhs only) as Caution Deposit. On the same day, i.e., on 20.01.2005, M/s.MSTC Ltd., who conducted the auction, sent Sale Intimation Letter to the claimant. In the said letter, the claimant was requested to deposit a sum of Rs.7,00,10,002.00 by way of DD/PO in favour of the respondent, within 7 days from the date of closure of e-Auction or as per the special terms and conditions of the e-Auction. The claimant deposited the said amount by way of Demand Drafts, along with letter dated 27.01.2005. On 16.02.2005, M/s.MSTC Ltd. sent Sale Order/Acceptance letter to the claimant, in which, the obligation of the claimant to pay Sales Tax @ 12% with surcharges, 5% and 1.1% I.T. with 2% Educational Cess on I.T. on the total value of scrap was mentioned. Payment schedule was also given in the said letter. It was also indicated that the period for taking delivery of the material, without ground rent was 300 days from the date of issuance of delivery order by the respondent.

3.2.The claimant opted to make payments as per Clause 8(b)(ii) of the terms and conditions, under which, the claimant can make payments in installments. Admittedly, the payments by the claimant were not made in time, as per the said clause. It is relevant to mention that the claimant has paid the amounts belatedly. With respect to Sales Tax, the respondent collected 12% with surcharges as per the Sale Order and paid to the Department. However, the dispute regarding quantum of tax is pending before this Court.

3.3.In view of the belated payment of 40% of the total lot value, late payment charges @ 1% of the total lot value for one week was calculated and forfeited from EMD by the respondent. It is relevant to mention that, as per the terms and conditions, the claimant is liable to pay late payment charges @ 1% of the total lot value per week up to 3 weeks. The respondent had levied and had recovered a sum of Rs.70,01,000/- towards late payment charges calculated @ 1% for one week only. Further, since, the claimant had paid the payable amounts belatedly, the respondent charged 12% interest for the period of delay along with interest for delay in payment of Sales Tax at 12%, which comes to Rs.91,99,342/-. The respondent, in total, withheld a sum of Rs.1,62,00,342/- from EMD made by the claimant.

4.The claimant referred this matter for Arbitration before the Arbitral Tribunal, putting forth the following claims :

(1) To direct the respondent to release the sum of Rs.1,62,00,000.00 to the claimant which had been withheld from the EMD, towards penalty and interest.

(2) To direct the respondent to pay the claimant the sum of Rs.1 crore as consolidated interest for the period from

28.04.2006 to 03.05.08 for withholding EMD to the tune of Rs.10062,00,000.00 (3) To direct the respondent to pay interest @ 18% per annum on the claimant f