1. Vide this judgment, I shall decide the petition under section 34 of
Arbitration and Conciliation Act, challenging the impugned arbitral
award dated 31.08.2023 passed by Ld. Sole Arbitrator.
2. Brief facts of the case are that on 01.12.2015, the petitioner by
way of office Order No. EE(C)/MD-1/DB/W-9/2015-16/1882
published its notice inviting Tender for ‘Vertical
Extension/Construction of Earth Station Building at Todapur for ‘DTH’
expansion up to 250 Channel Phase-III under 12 th Plan’ wherein the
OMP (COMM) 113/23 Dt. 24.01.2025 Page nos. 1 of 44
Union of India Vs. M/S PNSC, INFRASTRUCTURE PVT. LTD.
estimated cost of tendor was fixed at Rs. 2,74,91,514/-. The petitioner
through the said notice invited online tenders from the intending
contractors for the said work. As per notice, the time is of the essence
and fixed the period of completion within 12 months from the date of
commencement of work. The bid of the respondent was accepted by the
petitioner and accordingly the letter of acceptance dated 03.03.2016
followed by letter of award of work dated 16.03.2016 was issued by the
petitioner. Thereafter, the contract agreement was signed and executed
on 16.03.2016 for a total contract price of Rs. 2,35,49,231/-. The
stipulated start date of work was 13.03.2016 and the project is to be
completed in 12 months, however the project was finally completed by
the respondent on 02.08.2018 with a delay of 509 days. After
successful completion of the work, the respondent was granted
extension of time under Clause 2 of the Contract without levy of
compensation. Accordingly, the completion certificate was issued to the
respondent on 02.08.2018. The respondent vide its letter dated
04.10.2018 submitted its final bill for electrical component of work
amounting to Rs. 24,74,670/-. The respondent vide letter dated
29.03.2019 submitted its final bill for civil component of work
amounting to Rs. 2,19,62,677/-. The petitioner had released the
payment for final bill for civil works amount to Rs. 2,19,43,232/- as on
29.03.2019 and final bill for electrical works on 16.10.2018 for gross
value of Rs. 24,64,670/-.