BHARAT HEAVY ELECTRICAL LIMITED & ANR vs M/S KONERU CONSTRUCTIONS

$~J * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment pronounced on: 26.11.2025 + O.M.P (COMM) 255/2020 BHARAT HEAVY ELECTRICAL LIMITED & ANR .....Petitioners Through: Mr. Sanjeev Anand, Sr. Advocate along with Mr. Pallav Kumar, Mr. Dibya Nishant, Ms. Khushbu Dwivedi and Ms. Farheen Pensale, Advocates. versus M/S KONERU CONSTRUCTIONS .....Respondent Through: Ms. Monika Arora (CGSC) along with Mr. Subrodeep Saha and Ms. Radhika Kurduka, Advocates. Mr. Dharmesh Misra, Sr. Advocate along with Mr. Raghav Tiwari and Mr. Prateek Gupta, Advocates. CORAM: HON'BLE MR. JUSTICE SACHIN DATTA JUDGMENT FACTUAL BACKGROUND 1. The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter ‘the A&C Act’) assails an arbitral award dated 21.01.2014 (hereinafter ‘the impugned arbitral award’) to the limited extent that the respondent has been held entitled to damages for loss suffered due to escalation of rates amounting to Rs. 72,90,719/- along with interest at the rate of 18 % per annum from the date of the award, if the award amount is not paid within a period of 8 weeks from the date of the award. 2. The arbitral proceedings took place in the backdrop of a tende