PRATIBHA INDUSTRIES LIMITED Vs. NAVI MUMBAI MUNICIPAL CORPORATION

JUDGEMENT

(1.) This is an Appeal under Sec. 37 of the Arbitration and Conciliation Act, 1996 ("the Act") impugning an order dated December 10, 2020 ("Impugned Judgement") passed by the Learned Principal District Judge, Thane, setting aside the arbitral award dated November 05, 2015 passed by a Learned Sole Arbitrator ("Arbitral Award"). The arbitral award partly allowed certain claims of the Appellant, Pratibha Industries Limited, Mumbai (in liquidation) ("Pratibha") in its claims against the Respondent, Navi Mumbai Municipal Corporation ("NMMC").

(2.) The disputes between the parties relate to a project awarded by NMMC to Pratibha by a Contract dated April 04, 2005 ("Contract") entailing laying of pipelines in Navi Mumbai under a deferred payment scheme ("Project"). All payments for the Project were required to be made after completion of the Project. The cost of the Project was approximately Rs.200.00 crores. Right of way over land on which pipelines had to be laid,- for over a 30-kilometer stretch - was necessary, but the last parcel of land was actually received after approximately two years, while the Project was to be completed within one year.

(3.) There is no dispute between the parties on the quantification of the claimed amounts. Suffice it to say that Pratibha had claimed Rs.~20.8 crores towards increase in financing costs on account of delayed release of instalment payments, but was awarded only Rs.14.68 crores. Pratibha also made a claim for price escalation during the extended contract and also for the cost of extended stay for the Project in the sum of Rs.8.56 crores and Rs.7.27 crores respectively, but was awarded sums of Rs.3.07 crores and Rs.3.11 crores respectively. The length of the pipeline was increased, and Pratibha made a claim for such increase in length in the sum of Rs.1.74 crores, which was disallowed. Finally, interest had been claimed until the date of the award, in the sum of Rs.15.51 crores but the Learned Arbitrator granted interest which amounted to Rs.5.41 crores. No costs were awarded in the Arbitral Award. The aggregate amount awarded by the Learned Arbitral Tribunal was in the sum of Rs.26.29 crores along with interest at the rate of 18% per annum from the date of the Arbitral Award until realisation.