This petition was filed under Section 34 of the Arbitration and Conciliation Act, 1996 by Ratnagiri Gas and Power Pvt. Ltd. (RGPPL) to challenge an Arbitral Award dated 03.09.2019 passed by the Sole Arbitrator. The underlying dispute arose from an e-auction tender for the sale of approximately 40,000 Metric Tonnes of Naphtha, wherein RGPPL had deducted USD 714,760.74 towards liquidated damages from the buyer’s security deposit due to delays in lifting the material. The Sole Arbitrator allowed the claims of the respondent (Dinowic Pte. Ltd.) for the refund of the deducted amount along with interest at 6% per annum, and completely rejected RGPPL’s counter-claims for interest on delayed remittances, exchange rate variations, and ground rent. The High Court dismissed RGPPL’s Section 34 petition, holding that the Arbitrator’s findings were plausible, well-reasoned, and did not suffer from any patent illegality or perversity warranting interference under the limited scope of judicial review.
- Waiver of Timelines and Acceptance of Performance: The Sole Arbitrator noted that while there were delays on the part of the buyer in opening letters of credit (LCs) and lifting the Naphtha, RGPPL accepted the delayed performance without reservation, thereby waiving strict compliance with the contractual timelines.
- Procedural Breach in Deducting Liquidated Damages: The Arbitrator rightly observed that the deduction of liquidated damages by RGPPL was executed in clear breach of the mandatory procedure stipulated under the contract.
- Requirement of Proving Actual Loss: Reaffirming established principles on liquidated damages, the Arbitrator held that the clauses did not represent genuine pre-estimates of loss, and RGPPL failed to establish or prove any actual loss suffered by it to legally sustain the levy.
- Scope of Interference under Section 34: The High Court underscored that an arbitral award cannot be interfered with merely because an alternative view is possible, as the interpretation of contractual terms and appreciation of evidence fall squarely within the domain of the Arbitrator.
2026 DHC 6806
Ratnagiri Gas and Power Pvt. Ltd. v. Dinowic Pte. Ltd. (D.O.J. 17.08.2026)




