This petition was filed under Section 34 of the Arbitration and Conciliation Act, 1996 by India Tourism Development Corporation (ITDC) seeking to set aside an Arbitral Award dated 30.10.2018 along with a subsequent order terminating the mandate dated 01.05.2019 passed by the Sole Arbitrator. The underlying dispute arose out of a contract awarded to M/s Bajaj Electricals Ltd. for the supply, installation, testing, and commissioning of specialized illumination and lighting works at the Safdarjung Tomb Monument in New Delhi. Following the completion of the work and the taking over of the site by the Archaeological Survey of India (ASI) in June 2009, disputes arose over outstanding payments, deductions made by ITDC towards statutory dues (Service Tax, ESI/EPF, labour cess), and execution variations, leading to company petitions and subsequent reference to arbitration. The Sole Arbitrator partially allowed the contractor’s claims, directing ITDC to pay a principal sum of ₹46,92,298.22/- along with interest. The High Court dismissed ITDC’s Section 34 petition, holding that the Arbitrator’s findings were well-reasoned, plausible, and did not suffer from patent illegality, perversity, or lack of a judicial approach.
- Scope of Judicial Review under Section 34: The High Court reiterated that an arbitral award cannot be interfered with or re-appreciated on merits merely because an alternative view is plausible, as the interpretation of contractual terms and appreciation of evidence rest within the exclusive domain of the Arbitrator.
- Justification for Release of Statutory Deductions: The Arbitral Tribunal rightly directed the release of withheld amounts concerning Service Tax, ESI/EPF, and labour cess upon noting that the contractor had submitted requisite compliance forms, ST-3 forms, indemnity bonds, and proofs, rendering arbitrary withholding by the employer unsustainable.
- Rejection of Unsubstantiated Deductions: The Arbitrator properly examined the measurement books and record entries, finding no cogent contractual basis to sustain unilateral deductions made by ITDC towards minor specification changes without establishing corresponding actual losses or adhering to prescribed contractual mechanisms.
- Award of Interest and Compliance: The grant of pendente lite and future interest by the Arbitral Tribunal was upheld as a legitimate exercise of discretion under the Arbitration and Conciliation Act, 1996, given the prolonged withholding of legitimate dues owed to the contractor since 2009.
2026 DHC 6810
India Tourism Development Corporation v. M/s Bajaj Electricals Ltd. (D.O.J. 17.08.2026)




