Delhi High Court - Orders
Govt. Of Nct Of Delhi vs M/S Dsc Limited on 6 February, 2023
Author: Chandra Dhari Singh
Bench: Chandra Dhari Singh
$~33
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ O.M.P. (COMM) 39/2023
GOVT. OF NCT OF DELHI ..... Petitioner
Through: Mr. Lalltakash Joshi, Advocate
versus
M/S DSC LIMITED ..... Respondent
Through: Mr. Akhil Sibal, Sr. Advocate with
Mr. Deepak Khurana, Mr. Ashwini
K. Tak, Mr. Ankur Upadhyay, Ms.
Deboshree Mukherjee and Ms. Sanya
Kumar, Advocates
CORAM:
HON'BLE MR. JUSTICE CHANDRA DHARI SINGH
ORDER
% 06.02.2023
I.A. 2137/2023 (Exemption)
Subject to the petitioner filing the clear, original and legible/typed copies of any dim documents on which the petitioner may seek to place reliance, within two weeks from today, exemption is granted for the present.
The application is disposed of.
I.A. 2138/2023 (Exemption) Exemption allowed subject to just exceptions.
The application stands disposed of.
O.M.P. (COMM) 39/2023 & I.A. 2136/2023
1. The instant petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter "The Act, 1996") has been filed on Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:07.02.2023 19:15:45 behalf of the petitioner seeking, inter alia, the following reliefs:-
"a. Pass an order thereby setting aside / quashing the Impugned Arbitral Award dated 17.10.2022 passed by the Ld. Sole Arbitrator Shri Vinod Kumar Malik in the matter of arbitration between 'M/s DSC Limited and GNCTD'; or in the alternative b. Set aside the Impugned Arbitral Award dated 17.10.2022 passed by the Ld. Sole Arbitrator Shri Vinod Kumar Malik in the matter of arbitration between M/s DSC Limited and GNCTD' and remand the matter for fresh adjudication as may be deemed fit by this Hon'ble Court in the facts and circumstances of the present case;
c. Pass an order thereby calling for the original arbitration records..."
2. Learned counsel appearing on behalf of petitioner submitted that the petitioner issued letter of acceptance to the respondent in relation to Corridor Improvement of UP Link Road from NH-24 Crossing (Noida Mor) to Chilla Regulator (herein after referred to as „Project/Work‟). Subsequently, the parties executed the subject-matter Agreement on 26th September, 2008. Estimated cost put to tender was Rs.178 crores whereas the contract was awarded at Rs.265,04,30,376/-. It is submitted that the stipulated date of commencement of work was 17th October, 2008 and for completion of the project was 16th April, 2010. On 16th May, 2011, the DG, CPWD issued office memorandum laying out the linkage/multiplying factor to change whole price base index 2004-05 to 1993-94. It is further submitted that the Petitioner granted extension of time to the Respondent from 16th April, 2010 upto 15th December, 2010 without levy of compensation and for the remaining period i.e. from 16th December, 2010 upto 8th October, 2011 Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:07.02.2023 19:15:45 extension of time was granted to the Respondent with levy of compensation of around Rs.26 crores in terms of Clause 2 of GCC of the Agreement.
3. Learned counsel appearing on behalf of petitioner submitted that the Respondent made a request on 30th May, 2014 for appointment of arbitrator to adjudicate the disputes which had arisen between the parties. Subsequently, the learned Arbitral Tribunal comprising the sole arbitrator was constituted. In the arbitral proceedings, the respondent raised a total of 20 claims against the petitioner amounting to approximately Rs.34 crores plus interest @ 18% per annum for pre-reference, pendente lite and future period.
4. It is submitted that on 2nd February, 2016, the respondent moved an application modifying the amount of Claim No.9 (the amount of which was originally Rs.2,35,56,000/- was modified to Rs.6,57,106/-). On 8th June, 2018, the Respondent moved an application for modification of amount of Claim No.7 (the amount of which was originally Rs.24 lakh was modified to Rs.63,61,693/-) and Claim No.11 (the amount of which was originally Rs.12, 13,000/- was modified to Rs.13,00,000/-).
5. It is submitted that on 30th December, 2021, the Respondent challenged the extension of time from 16th December,2010 till 8th October, 2011 alongwith levy of compensation under clause 2 of the GCC of the Agreement by way of separate arbitral proceedings wherein the learned Arbitral Tribunal by way of arbitral award dated 30th December, 2021 held the grant of extension of time with levy of compensation under clause 2 of GCC of Agreement as unjustified. The petitioner has challenged the said arbitral award dated 30th December, 2021 before this Court by way of filing a petition under section 34 of the Act, 1996 which was pending adjudication Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:07.02.2023 19:15:45 as on date of filing of the present petition.
6. It is also submitted that on 17th October, 2022, the impugned arbitral award was passed by the learned Sole Arbitrator whereby the respondent has been granted a total sum of Rs.22,72,45,361/- along with future interest at the rate of 12% per annum. It is pointed out that out of the total sum awarded approximately Rs.22.72 crores of which the principal amount is Rs.12,80,63,033/- and pendente lite interest is Rs.9,86,26,078/-.
7. Heard the learned counsel for the petitioner.
8. Issue notice.
9. Notice is accepted by Mr. Deepak Khurana, learned counsel appearing on behalf of respondent. He prays for and is granted three weeks‟ time to file reply/objection. Rejoinder, thereto if any, be filed within two weeks thereafter.
10. List on 28th March, 2023.
CHANDRA DHARI SINGH, J FEBRUARY 6, 2023 Dy/@k Click here to check corrigendum, if any Signature Not Verified Digitally Signed By:GAURAV SHARMA Signing Date:07.02.2023 19:15:45