Delhi District Court Mr. K. L. Gugnani vs Asf Insignia Sez Pvt Ltd on 3 March, 2021 In the Court of Shri Sanjiv Jain, District Judge (Commercial Court)03, Patiala House Courts New Delhi OMP (Comm) No. 615/2018 & ARBT No. 4620/2018 Mr. K. L. Gugnani, 2/11, Nehru Enclave, Kalkaji, New Delhi110019. ... Petitioner/objector versus ASF Insignia SEZ Pvt Ltd, 11, Babar Lane, Bengali Market, New Delhi110001. Also at: 362363, ASF Centre, Udyog Vihar, PhaseIV, Gurgaon122016 (Haryana). ... Respondent/claimant Date of institution : 31.08.2018 Date of reserving judgment : 04.02.2021 Date of decision : 03.03.2021 JUDGME NT 1. This petition under Section 34 of the Arbitration and Conciliation Act, 1996 (as amended upto date) hereinafter called the 'Act' challenges the award dated 03.07.2018 passed by the Arbitrator Ms. Justice Manju Goel (Retd.). OMP (Comm) No. 615/2018 & ARBT No. 4620/2018 Page No. 1 of 91 Brief facts: 2. Briefly the facts as stated in the petition are that the respondent (earlier known as Canton Buildwell Pvt Ltd) was developing a Special Economic Zone (SEZ) at Gwal Pahari, Gurugram. It engaged the services of the petitioner as a technical consultant for sanction of load from the electricity distributors and for other related services. The renumeration was fixed at Rs. 1,37,35,000/ vide service agreement dated 05.02.2008. The scope of work as per clause 3 of the agreement was as follows: 3.1.1 Submission of application with the processing fee to Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL). 3.1.2 To arrange technical feasibility for the 50 MW load applied for the project. 3.1.3 To arrange estimate for the service line up to outside / inside the owner's premises including arranging all clearances from the appropriate authorities. 3.1.4 To arrange installation of energy meter (s) as per load released. However, the owner will be required to provide land free of cost as per requirement of DHBVNL for establishing 66 KV yards on the site. 3.1.5 Liaison with relevant authorities. 3.1.6 Advise owner all relevant procedures and formalities. 3. As per clause 8.0, contract price and payment terms were as under: 8.1 The Contract Price in respect of this Agreement shall be Rs. 1,37,35,000/, which shall be paid by the owner to the Consultant in consideration of the Services to be rendered by the Consultant for the project, in the OMP (Comm) No. 615/2018 & ARBT No. 4620/2018 Page No. 2 of 91 manner specified in the Terms of Payment, (Clause 8.4). The Contract price shall remain fixed and is inclusive of all taxes & costs excepting Service Tax (applicable at the prevailing rate at the time of invoicing, unless a valid Service Tax exemption certificate issued by Ministry of Commerce and Industry, Government of India in favour of M/s Canton Buildwell Pvt Ltd is provided to the Consultant). 8.2 Owner agrees to pay all undisputed invoices for Consultant which become due and payable to the Consultant within fifteen days of receipt of invoices by Owner from the Consultant. 8.2.1 In case due to some unavoidable circumstances there is delay on part of DHBVNL in providing supply at 66 KV level, partial load upto 5 MVA of 11 KV voltage at Owner's cost shall be arranged immediately so as to provide electricity for the premises till such time supply at 66 KV is made available. 8.3 For the avoidance of doubt, the fees set forth herein above will be the total charge payable by the Owner to the Consultant for Services rendered, inclusive of all expenses / costs and any other charges or on account of any existing or newly created government taxes. However, the above Contract Price is exclusive of all charges payable for arranging statutory permission from concerned Government Department for the installation installed in the Owner's premises. 8.4 The payment terms shall be as under: * 10% of the contract price as advance to proceed. For every lot o