STEEL AUTHORITY OF INDIA LIMITED vs M/S PRIMETALS TECHNOLOGIES INDIA PVT LIMITED

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 12.02.2026 Judgment pronounced on: 23.02.2026 + O.M.P. (COMM) 451/2023 & I.A. 21931/2023 STEEL AUTHORITY OF INDIA LIMITED .....Petitioner Through: Mr. Siddharth Yadav, Sr. Adv with Mr. Ashish Tiwari, Mr. Anurag Tiwari and Mr. Sahib Patel, Advs. versus M/S PRIMETALS TECHNOLOGIES INDIA PVT. LIMITED .....Respondent Through: Mr. Rajesh Markanda, Mr. Keshri Kumar & Mr. Saurav Markanda, Advs. CORAM: HON'BLE MR. JUSTICE AVNEESH JHINGAN JUDGMENT 1. This petition is filed under Section 34 of the Arbitration and Conciliation Act, 1996 (for short „the Act‟) challenging the arbitral award dated 02.05.2023, modified vide order dated 07.07.2023. FACTS 2. The facts in brief emerging from the record are that the parties to the lis executed a contract on 01.06.2007 whereby the respondent was to replace „Existing MG Sets for Roughing and Finishing Stand Drives Motors of Plate Mill by Digital Thyristor Converters‟ at Bhilai Steel Plant (hereinafter „BSP‟). The work was to be completed by the respondent within twenty-one months and was for a price of Signature Not Verified Signed By:HONEY O.M.P. (COMM) 451/2023 Page 1 of 19 ARORA Signing Date:23.02.2026 15:38:55 Rs.44,93,20,127/-. The contract was executed, the commissioning certificate and the final acceptance certificate were issued on 03.08.2010 and 24.05.2013 respectively. The final invoices dated 28.05.2018 were submitted by the respondent and the payment was released on 10.07.2018 after deducting liquidated damages (in short „LD‟) and Rs.1,40,38,523/- for shortfall in minimum guaranteed CENVAT credit (in short „MGCC‟). On failure of conciliation attempts, the arbitration proceedings as per clause 6 of the General Contract Conditions (in short „GCC‟) were invoked on 28.