UNION OF INDIA Vs. MS PRAGATI CONSTRUCTION CONSULTANTS

JUDGEMENT

(1.) This petition is filed under Sec. 34 of the Arbitration and Conciliation Act, 1996 (for short 'the Act') seeking setting aside of arbitral award dtd. 4/12/2024.

(2.) The brief facts are that the petitioner/Northern Railway invited tenders on 25/7/2019 for the work of earth filling, cutting of embankment, supply and spreading of blanketing material, mechanical compaction, construction of minor bridges, duty huts, trolley refuges, service and residential buildings including electrical works at various stations between Roza to Jahanikhera stations (Km 0.00 to 40.00 Km) in connection with the doubling of Roza-Sitapur sec. of Moradabad Division. On 28/11/2019 the Award Letter was issued in favour of the respondent at a value of Rs.42,46,24,036.66. The contract was executed between the parties on 14/2/2020.

(3.) Learned counsel for the petitioner contends that the tribunal erred in directing refund of the amount deducted consequent to variation in quantities of items pertaining to Schedule 'A'. The submission is that under Clause 63 of the GCC 'excepted matters' are not arbitrable. The tribunal held that claim for refund of deductions made of items in Schedule 'B' category was not arbitrable being an 'excepted matter' but proceeded to adjudicate the deductions made under Schedule 'A'. It is emphasized that the respondent accepted the payments without raising objection and the matter falls within the ambit of clause 63 of the GCC.