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N.S. Associates Pvt. Ltd vs The Life Insurance Corporation Of India on 2 May, 2022

Author: Vibhu Bakhru

Bench: Vibhu Bakhru

                          $~47
                          *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +    O.M.P. (COMM) 208/2022
                               N.S. ASSOCIATES PVT. LTD.                 ..... Petitioner
                                              Through: Mr. Tarique Siddiqui, Adv.
                                              versus
                               THE LIFE INSURANCE CORPORATION
                               OF INDIA                                  ..... Respondent
                                              Through: None.
                               CORAM:
                               HON'BLE MR. JUSTICE VIBHU BAKHRU
                                              ORDER

% 02.05.2022 IA No.6664/2022 (for exemption)

1. Exemption is allowed, subject to all just exceptions.

2. The application is disposed of.

IA No.6665/2022 (for condonation of delay)

3. For the reasons stated in the application, the same is allowed.

4. The application is disposed of.

O.M.P. (COMM) 208/2022

5. The petitioner has filed the present petition under Section 34 of the Arbitration & Conciliation Act, 1996 (hereafter the 'A&C Act') impugning the Arbitral Award dated 10.01.2022 on several grounds. First, he submits that the Arbitral Tribunal had erred in not granting the escalation even though it had come to the conclusion that the delay of 20.8 months was entirely attributable to the respondent. He submits that the clause restricting the escalation would not be applicable in these circumstances.

6. Second, he submits that the Arbitral Tribunal had erred in restricting the claim of the petitioner for grouting used in fixing the tiles on the basis Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:04.05.2022 that the tiles fixed were 600mm x 600mm. He states that there is no material on record to indicate the above. He further states that the tiles fixed were 300mm x 300mm and there was no dispute regarding the size of the tiles. According to him, it is an apparent error on the face of the award.

7. Third, he submits that the Arbitral Tribunal has overlooked the petitioner's claim for GST on the work done. He states that the petitioner had expressly claimed it and the same was also noted by the Arbitral Tribunal. However, the Arbitral Tribunal has neither rejected it nor awarded any amount against the same.

8. Fourth, he submits that the petitioner's claim for loss of profits has also been rejected by the Arbitral Tribunal and the same is contrary to the accepted norms.

9. Lastly, he submits that the Arbitral Tribunal has erred in awarding interest at the rate of 8% per annum, which is far below the market rate of interest.

10. It is also well settled that an arbitral tribunal has wide discretion in granting interest and loss of profits and therefore, the petitioner's contention that the award entered in respect of interest is liable to be set aside on the ground that the interest awarded is below the market rate, is also unsustainable.

11. Issue notice on the remaining contentions as advanced by the learned counsel for the petitioner.

12. On the petitioner taking steps, notice shall go by speed post and electronic modes. Dasti, in addition. Dasti notice shall be served in person.

13. An affidavit of service be filed at least one week before the next date of hearing.

14. List on 22.07.2022.

VIBHU BAKHRU, J MAY 2, 2022 'gsr' Click here to check corrigendum, if any Signature Not Verified Digitally Signed By:Dushyant Rawal Signing Date:04.05.2022