MOUSHUMI BHATTACHARYA,J. - (1.) The petitioner has applied for setting aside of an Award dated 18 April, 2011 passed by a learned Sole Arbitrator in an arbitration in which the respondent herein was the claimant. By the impugned award, the Arbitrator found that the respondent was entitled to the claim for the amount adjusted towards Service Tax in excess of 8% for the months of July and August, 2009 amounting to Rs. 2,14,27,220/- and the amount adjusted from the subsequent bills of the respondent being Rs. 6,54,54,216/-. Interest at the rate of 12%, translated to a sum of Rs. 34 lakhs was also awarded to the respondent/claimant amounting to a total of Rs. 9,02,81,436/-. The Counter-Claim of the petitioner herein (respondent in the arbitration) was rejected.
(2.) For ease of reference, the petitioner (respondent in the arbitration) is referred to as Kolkata Port Trust/KoPT and the respondent/claimant as ABG.
(3.) The brief facts leading to the dispute being referred to arbitration by ABG are as follows. ABG entered into a contract with KoPT pursuant to a tender floated by KoPT for operation and maintenance of two Mobile Harbour Cranes with backup support equipment at the Container Terminal in the Kolkata docks of KoPT. The parties agreed that the contract was to be governed by the terms of the tender. Disputes arose between the parties when KoPT adjusted an amount of Rs. 2,14,27,220/- from the monthly bills of ABG for June and July, 2009 on account of service tax paid in excess of 8% and withheld bill amounts for the months of January to March, 2010. ABG filed a claim for Rs. 2,14,27,220/- against the amounts adjusted towards service tax in excess of 8% in July, August, 2009; Rs.7,66,78,396/- against the other amounts adjusted from ABG's bills; and Rs. 49,20,900/- towards interest @ 18% p.a. till 31.05.2010. ABG claimed a total of Rs.10,30,26,516/- from KoPT under these heads. These figures would appear from the particulars of the Statement of Claim filed by ABG in the arbitration proceeding.;