Hindustan Petroleum Corporation Ltd. Hindustan Bhawan, through Dy.General Manager O & D, SZ. 8, S.V. Marg, Ballard Estate, Mumbai 400 001 .. Respondent Mr.Prateek Seksaria with Ms.Apoorva Gupta i/b AZB and Partners for the petitioner. Mr.Charles D'Souza with Ms.Sakshi Bhalla for the respondent. CORAM : A.K. MENON, J. RESERVED ON : 18TH JULY, 2018 PRONOUNCED ON : 25TH SEPTEMBER, 2018 JUDGMENT : 1. This petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 assails an award dated 30th December, 2011 passed by the sole arbitrator appointed in terms of arbitration proceedings contained the works contract. 1/25 arbp1225.2012.odt 2. The facts in the case briefly stated are as follows : The claimant in arbitration was HPCL. the respondent in this petition. The petitioner was engaged in the business as a mobile data solutions provider (vehicle tracking solutions provider) delivering endtoend solutions to various organisations. For the sake of convenience the petitioner herein is referred to as "TMT" and the respondent is referred to as "HPCL". HPCL was keen on checking adulteration, unauthorised opening of seals of tank trucks and pilferage of petroleum products inter alia by tracking/checking illegal diversion of dealer owned tank trucks (TTs) which carried petroleum products. The aim was to ensure the delivery of products of original quality and accurate quantity. HPCL was desirous of installing a Vehicle Management system and floated a tender for installation and commissioning of a vehicle management system. In respect of south zone, TMT was the successful bidder and was required to provide a Vehicle management and electrical seal monitoring system described as VMS and VSN for dealers owned trucks operating in the south zone. 3. A letter of intent came to be issued on 26th October, 2006 and a purchase order was thereafter issued on 26th November, 2006. TMT were required to supply 575 Vehicle Mounted Units at the price of Rs.12,750 per unit + Sales Tax, 575 Electrical Seal Monitoring System with sensors and valve enclosures @ Rs.6,910 + Sales Tax. TMT were to design, develop and test custom built software for Vehicle Management Systems at the price of 2/25 arbp1225.2012.odt Rs.4,00,926/ approximately per unit. The total value of the order was Rs.1,31,00,176.56 ps. The contract was subject to retention money 75% of the invoice value was to be paid after installation and commissioning of the system, 25% was to be paid after stabilization period of one month during which successful operation of the system was to be ensured. The purchase order provided for TMT to supply software and hardware for VMS and ESMS and they were to conduct at least one training programme after installation at the head quarters and provide a user manual. In the course of performing the contract, disputes arose between the parties regarding efficacy of the system, delay in execution of the work and alleged deficiencies which resulted in HPCL terminating contract on or about 2nd July, 2008. Claims and counter claims were made and finally the dispute was referred to arbitration. 4. The arbitration agreement between the parties provided for appointment of the sole arbitrator who in the present case was an officer of the respondent corporation. After entering upon the reference, pleadings were completed and hearings were held on numerous dates from 6th November, 2009 and 3rd November, 2010 at Chennai. During the hearing, the respondent stated that they were intending to rely on documentary evidence and would not lead oral evidence. The claimants, however, examined two witnesses, who filed their affidavits of evidence and who were later cross examined by the Senior Manager (Legal) of the respondent