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Airport Authority of India v/s Protective Consultancy & Security Services (P) Limited & Another


Company & Directors' Information:- J K CONSULTANCY AND SERVICES PRIVATE LIMITED [Active] CIN = U74899DL1995PTC066762

Company & Directors' Information:- P C INDIA LIMITED [Strike Off] CIN = U33111TN1986PLC013401

Company & Directors' Information:- K S CONSULTANCY SERVICES PVT LTD [Active] CIN = U74140WB1988PTC045137

Company & Directors' Information:- V N A SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74920DL1998PTC091780

Company & Directors' Information:- Y A CONSULTANCY SERVICES PVT LTD [Active] CIN = U74140WB1987PTC043225

Company & Directors' Information:- THE INDIA COMPANY PRIVATE LIMITED [Active] CIN = U74999TN1919PTC000911

Company & Directors' Information:- L S D CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74999MH2015PTC262781

Company & Directors' Information:- P O CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U93000WB2009PTC134219

Company & Directors' Information:- J S SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74920HR2008PTC037747

Company & Directors' Information:- AIRPORT SERVICES INDIA PRIVATE LIMITED [Active] CIN = U60221DL1998PTC097699

Company & Directors' Information:- R. P. S. S. SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U93090UP2017PTC092692

Company & Directors' Information:- R. K . CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74140AS2006PTC008131

Company & Directors' Information:- G 6 SECURITY & CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74920OR2013PTC016696

Company & Directors' Information:- INDIA CORPORATION PRIVATE LIMITED [Active] CIN = U65990MH1941PTC003461

Company & Directors' Information:- A & A SERVICES AND CONSULTANCY PRIVATE LIMITED [Strike Off] CIN = U74140OR2012PTC015010

Company & Directors' Information:- J R CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74900TN2015PTC102294

Company & Directors' Information:- L K SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U93030UP2015PTC068449

Company & Directors' Information:- S I M CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74999DL2007PTC162468

Company & Directors' Information:- V & T CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999CH2005PTC027862

Company & Directors' Information:- S. B. SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74999UP2016PTC086112

Company & Directors' Information:- L M B CONSULTANCY SERVICES INDIA PRIVATE LIMITED [Active] CIN = U74999KL2002PTC015318

Company & Directors' Information:- H K SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74920MH2002PTC136385

Company & Directors' Information:- A G SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74900MH2013PTC239505

Company & Directors' Information:- P G SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U24232DL2005PTC132138

Company & Directors' Information:- M & D SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74120DL2008PTC173377

Company & Directors' Information:- M Y M CONSULTANCY SERVICES INDIA PRIVATE LIMITED [Strike Off] CIN = U74900KA2011PTC058364

Company & Directors' Information:- M. SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920WB2000PTC092218

Company & Directors' Information:- T C S CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140RJ1995PTC011052

Company & Directors' Information:- K B M CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U72900TG2002PTC038403

Company & Directors' Information:- D & G SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U93000WB2011PTC165782

Company & Directors' Information:- R I W CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U72200KL2013PTC034174

Company & Directors' Information:- J D SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920AS2001PTC006629

Company & Directors' Information:- D AND R SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920JH2013PTC001793

Company & Directors' Information:- M & M CONSULTANCY SERVICES PVT. LTD. [Strike Off] CIN = U74140WB1992PTC056149

Company & Directors' Information:- V S B D CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140TN2000PTC045338

Company & Directors' Information:- Z K CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74210DL1993PTC052338

Company & Directors' Information:- B AND D CONSULTANCY SERVICES PVT LTD [Strike Off] CIN = U74210MH1982PTC027430

Company & Directors' Information:- D. G. CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140WB2008PTC129948

Company & Directors' Information:- E-1 SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74910OR2012PTC014996

Company & Directors' Information:- J S S SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920PB2005PTC028528

Company & Directors' Information:- P P CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74210TN1982PTC009556

Company & Directors' Information:- N R 'S CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74210TN1986PTC013630

Company & Directors' Information:- J S AIRPORT SERVICES PRIVATE LIMITED [Strike Off] CIN = U93000RJ2014PTC045102

Company & Directors' Information:- R. D. SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920PN2010PTC135994

Company & Directors' Information:- K N R SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U93000MH2010PTC204385

Company & Directors' Information:- S P SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U93000PN2014PTC150722

Company & Directors' Information:- D P CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74140PN2008PTC132654

Company & Directors' Information:- C AND H CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74100MH2004PTC148618

Company & Directors' Information:- R V K CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74120MH2011PTC221273

Company & Directors' Information:- H A S D CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74120MH2011PTC222997

Company & Directors' Information:- J K M CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74120UP2010PTC042726

Company & Directors' Information:- R P SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74120UP2011PTC046112

Company & Directors' Information:- S. P. S. S. SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74120UP2016PTC076893

Company & Directors' Information:- H N S SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74900TG2013PTC089837

Company & Directors' Information:- Y V R CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74900TG2015PTC098309

Company & Directors' Information:- J L I CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U72300UP2012PTC052649

Company & Directors' Information:- P. S. SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74920UP2008PTC035914

Company & Directors' Information:- B J U SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920UP2010PTC039772

Company & Directors' Information:- S A SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U93000UP2014PTC062073

Company & Directors' Information:- B. R. S. SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U93030UP2013PTC059573

Company & Directors' Information:- B & I SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74900WB2013PTC190717

Company & Directors' Information:- D R M B CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74900WB2014PTC201139

Company & Directors' Information:- R L SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74999JK2015PTC004376

Company & Directors' Information:- G P R CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140CH2012PTC033622

Company & Directors' Information:- S K CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U93000JH2012PTC000348

Company & Directors' Information:- S R S SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U95000DL2000PTC106902

Company & Directors' Information:- R & A CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U67100DL2011PTC215340

Company & Directors' Information:- G G SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U00000DL2001PTC109868

Company & Directors' Information:- M R S SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140DL2013PTC247541

Company & Directors' Information:- S M SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999DL2004PTC125744

Company & Directors' Information:- T & E SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74999DL2011PTC220586

Company & Directors' Information:- R SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U93000DL2011PTC213180

Company & Directors' Information:- A.N.D SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74900DL2009PTC193787

Company & Directors' Information:- M K G SECURITY SERVICES PRIVATE LIMITED [Under Process of Striking Off] CIN = U74920DL2005PTC141445

Company & Directors' Information:- A V SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74920DL2008PTC181601

Company & Directors' Information:- R-4 SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920DL2001PTC113509

Company & Directors' Information:- V AND A SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920DL2004PTC125411

Company & Directors' Information:- T F SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920DL2005PTC143337

Company & Directors' Information:- V M SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920DL2008PTC185522

Company & Directors' Information:- N K SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920DL2009PTC191230

Company & Directors' Information:- M H SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920DL2013PTC255582

Company & Directors' Information:- D S B SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920HR2004PTC035511

Company & Directors' Information:- B M SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920HR2011PTC042516

Company & Directors' Information:- P & D SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920HR2013PTC048169

Company & Directors' Information:- J S M CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U93000HR2011PTC043455

Company & Directors' Information:- P T SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U67120KA2013PTC070724

Company & Directors' Information:- P S K SECURITY SERVICES PRIVATE LIMITED [Active] CIN = U74920KA2013PTC069283

Company & Directors' Information:- H S R SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920KA2012PTC064955

Company & Directors' Information:- L AND L CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74140KL1997PTC011084

Company & Directors' Information:- J AND S CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74140KL2005PTC018496

Company & Directors' Information:- P E B CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74140KL2011PTC027680

Company & Directors' Information:- Z & H CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U85190KL2008PTC023534

Company & Directors' Information:- D AND N CONSULTANCY SERVICES PRIVATE LIMITED [Active] CIN = U74999PN2020PTC195417

Company & Directors' Information:- S S G CONSULTANCY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74140TN1997PTC037763

Company & Directors' Information:- SECURITY & SERVICES (INDIA) PVT LTD [Strike Off] CIN = U74140WB1977PTC030902

Company & Directors' Information:- PROTECTIVE CONSULTANCY AND SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U67120DL1988PTC031756

Company & Directors' Information:- N R V SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920CH2007PTC030824

Company & Directors' Information:- A. A. R. M. CONSULTANCY SERVICES PRIVATE LIMITED [Under Process of Striking Off] CIN = U74140DL2006PTC150076

Company & Directors' Information:- S V M SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U93090DL2006PTC153793

Company & Directors' Information:- R A R SECURITY SERVICES PRIVATE LIMITED [Strike Off] CIN = U74920DL2006PTC154147

Company & Directors' Information:- SERVICES AND CONSULTANCY P. LTD. [Strike Off] CIN = U99999DL2000PTC902217

    IA 7972 of 1998 & CS(OS) 2107A of 1997

    Decided On, 08 November 2005

    At, High Court of Delhi

    By, THE HONOURABLE MR. JUSTICE SANJAY KISHAN KAUL

    For the Petitioner: Ms. Maldeep Sidhu, Ms. Bindu Verma, Advocates. For the Respondents: Kailash Vasdev, Senior Advocate with Sanjay K. Shandilya, Prateek Kumar, Advocates.



Judgment Text

Sanjay Kishan Kaul, J.

IA 7972/1998 ( U/Sections 30 and 33 of the Arbitration Act, 1940)

1. The objections have been filed by the petitioner to the award of Sole Arbitrator Sh. Rajendra Pal, dated 21.8.1997. The parties have entered into an agreement dated 1.10.1990 whereby the respondent was required to provide security services at the Cargo Terminal, IGI Airport managed by the petitioner. It maybe noticed that the Arbitrator was Additional Chief Engineer (C) at the time when he was appointed as the Arbitrator and is a technical person.

2. A perusal of the award shows that there are three claims which were adjudicated by the Arbitrator.

3. The first claim is towards the management charges claimed by the respondent. This claim was rejected and thus there are naturally objections to the same.

4. Claim No. 2 is towards the unilateral and unjustified penal deductions. The relevant clause in this behalf is clause No. 27 which is as under:

'The Agency shall be penalized for theft, pilferage, wrong delivery/acceptance of cargo as per the authenticated documents on proven negligence of the security personnel of the Agency or on occasioned loss. In the event of such loss, a Joint Investigation by the Authority, DGR Representatives and the Agency will be carried out to identify the cause and apportion blame. Such investigation will be carried out within 24 hours. In case the representative of DGR does not turn up, the investigation will be carried out by Authority and the Agency’s designated official(s). The inquiry shall further indicate the percentage of lapses in respect of each of the other agencies concerned. Where a mala fide or negligence of the Agency is irrefutably established by the Joint Inquiry, a penal deduction up to a maximum of Rs. 35,000/- (Rupees thirty-five thousand only) per major incident may be levied after formal approval of the Member (Operation). However, instances wherein pilferage theft have occurred through mala fide actions of the Agency personnel. Same shall attract imposition of the penal charges of Rs. 2,500/- per instance. Member(Operation) shall adjudge each case on its merit based on the joint investigations, keeping in view the circumstances and the extent to which the security Agency vis-a-vis the other Agency’s personnel are responsible and thereafter specify the amount of deductions, if any, in each of the case to be deducted from the succeeding monthly bill. Four major incidents will render the contract liable for termination. Cumulative charges as also in this regard due to damages arising out of the negligence may be restricted to Rs. 1.5 lakh per annum. While deciding the extent of liability due weightage will be given in cases where pilferage/theft has occurred when the sensitive cargo was not placed in the assigned location in the ‘L’ cage, or strong room without intimating to the Security Agency. The Authority shall not take recourse to any penal deductions whatsoever in an arbitrary and unilateral manner. In the event of such loss, the Authority shall report the matter to the police for proper investigations but the factum of investigations by the police will not absolve the Agency of the aforesaid liability.'(Emphasis supplied)

5. The objection of the petitioner is that the amount awarded under the said claim has been so erroneously awarded on account of the failure of the Arbitrator to appreciate the evidence placed before the Arbitrator.

6. If that be the position, it does not even fall within the purview of the scrutiny under Sections 30 and 33 of the Arbitration Act, 1940. It is not the function of this Court to re-appreciate the evidence or to interfere with an award merely on the basis that the Court would come to a different conclusion on the material available before the Arbitrator. It is only in the eventuality of the award being totally perverse that such an interference is called for. In this behalf a judgment of the Division Bench in DDA v. Bhagat Construction Co. (P) Ltd. and Anr., 2004 (3) Arb.LR 481 This judgment, and even otherwise, strength may be drawn from the observations of the apex Court in Food Corporation of India v. Joginderpal Mohinderpal and Anr., (1989) 2 SCC 347 and Gujarat Water Supply and Sewerage Board v. Unique Erectors (Gujarat) (P) Ltd. and Anr., AIR 1989 SC 973. It is also to be noticed that the person appointed is a technically qualified person and the object is to see that a person conversant with the trade goes into the matter. Thus due weightage must be given to the award of such an Arbitrator.

7. Even if the merits of this objection were to be considered, a perusal of the award shows that there is cogent reasoning given for the same by the Arbitrator. The monthly penalties had already been made for the loss/pilferage of goods and it is only at the time of final settlement in July, 93 that the maximum penalty was imposed. The respondent did not even seriously contend to the contrary before the Arbitrator as is apparent from the observations in the award which are under:

'The respondent, inter alia, stated that the recoveries/deductions made were in order and the claimant were given a chance to research the lost cargo. They supported their statement by copies of letters written to the claimant.

The respondent stated that for goods received early or late, date of information of missing/pilferage/theft has been taken as date of incident.

The claimant maintained that for lost/pilfered goods monthly penalties were already made. Again, at the time of final settlement in July 93, maximum penalty was imposed (Rs 3.00 lac) and balance amount was recovered.

They also alleged that no handing over of the items in Cargo Complex was done by the respondent and as such, untraceability of a parcel after 24-30 months of its receipt can not be termed as laxity on their part. It was also stated that the claimant were penalized for weight variance in intact parcels and submitted relevant documents to show such happenings.

The respondent informed that there were 235 files for penal deductions and the claimant were advised to inspect the same. The claimant, after inspection of files submitted that at no time an inquiry was held as is contemplated as per agreement and all decisions taken thereon were unilateral, without giving any opportunity to claimant to explain their position in the matter. Even DGR representative was not informed as per agreement nor the cause of loss was ever identified.

The respondent did not refute the allegations made by the claimant.'

(Emphasis supplied)

8. It is thus apparent that the deductions sought to be made as penalties at the fag end after three and a half years were clearly an afterthought and were further not in conformity with the stipulations as specified in Clause 27 of the agreement.

9. As far as claim No. 3 is concerned, the same relates towards dues as incentives. This claim is in two parts and the first part of the claim has been rejected, and thus, is not required to be gone into.

10. The second part of the claim relates to one of the two packets which was found as open and there was difference between declared weight and the actual weight. The rival contentions have been considered on the basis of the material on record and its a pure finding of fact based on the same.

11. Learned Counsel for the petitioner in this behalf has referred to Clause 28, which is as under:

'If no instance of pilferage/theft occurs during any calender month, the Agency shall be given the reward of not less than 5% (five per cent) only of the bill for that given month payable every six months. Claims received by the Authority causes of which are not attributable to the Agency shall not be taken into consideration for the purpose of this award. for any exemplary services rendered by the security personnel in intercepting of culprit or preventing unauthorized removal of cargo, the Authority may grant cash award to the concerned personnel may be determined by the General Manager (Cargo).'

12. The consignee in that particular case had declared that he would not claim any damages for the alleged differential of weight. It was in view of that circumstance that the Arbitrator came to the conclusion that the respondent cannot be penalized on that account.

13. In view of th

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e aforesaid, I find no merit in the objections and the application is dismissed. CS (OS) 2107A/1997 Objections having been dismissed and there being no other legal impediment to the award, the award of the Sole Arbitrator Mr. Rajendra Pal, dated 21.8.1997 is made rule of the Court. In terms of the award no interest has been granted. It is thus directed that, taking into consideration the prevailing rates of interest at the relevant stage of time, the respondent is entitled to simple interest at the rate of 12 per cent per annum from the date of award till date of decree and further interest till date of realization at 9 per cent per annum. In case the amounts in terms of the decree is paid within 60 days from the date of decree, the petitioner shall be entitled to exemption from future interest. Parties are left to bear their own costs. Decree sheet be drawn up accordingly.
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