To,

The Authority,

Address: B-505 Rustomjee Avenue, Adimali-Rajakad Rd, Kerala, 685563

AND

The Contractor,

Address: C-703 Oberoi Avenue, Thodupuzha Muvattupuzha Rd, Kerala, 685584

Re: Arbitral Award in the Matter of Arbitration Proceeding dated:

Dear The Authority and The Contractor,

I, the undersigned Arbitrator appointed by the High Court of Kerala at Ernakulam pursuant to Section
11 of the Arbitration and Conciliation Act, 1996, to adjudicate the dispute between [The Authority]
and [The Contractor] concerning the imposition and quantification of liquidated damages under
Clause 16.2 of the tender document, hereby issue this Arbitral Award in accordance with the
provisions of the Arbitration and Conciliation Act, 1996.

1. Background and Jurisdiction:

The parties, [The Authority] and [The Contractor], entered into a contract for the planning,
engineering, supply, installation, and commissioning of the Indian Mobile Personal Communications
System in the telecom circles of Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh. This contract
was subject to the terms and conditions contained in the tender document and the Advance
Purchase Order (APO). The dispute arose from the alleged failure of [The Contractor] to complete
Phase I and Phase II of the project within the prescribed schedule, leading to the imposition of
liquidated damages by [The Authority].

The jurisdiction for this arbitration arises from the High Court of Kerala at Ernakulam's order to
appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996.

2. Issues Presented:

The primary issue before the Arbitrator is whether the dispute concerning the imposition and
quantification of liquidated damages under Clause 16.2 of the tender document constitutes an
"excepted matter" under Clause 20.1, thereby excluding it from arbitration.
3. Findings and Award:

After careful consideration of the parties' arguments, the terms and conditions of the tender
document, and the relevant legal provisions, I make the following findings:

a. Clause 16.2 of the Tender Document:

Clause 16.2 provides for the imposition of liquidated damages for delays in delivery. It outlines the
percentage of damages to be levied for each week of delay, up to a maximum of 10 weeks, and
further increases for delays beyond that period. Importantly, it states that the importance of
liquidated damages assessed by the purchaser (The Authority) shall be final and not subject to
challenge by the supplier (The Contractor).

b. Clause 20.1 of the Tender Document:

Clause 20.1 contains the arbitration clause, specifying "excepted matters" that are subject to
arbitration. The clause provides that any dispute or difference arising under the agreement, except
those specifically provided for in the agreement itself, shall be referred to arbitration.

Based on the language and intent of the aforementioned clauses, it is clear that the imposition and
quantification of liquidated damages, as per Clause 16.2, is expressly excluded from arbitration under
Clause 20.1. The tender document explicitly vests the Authority with the final authority to assess
liquidated damages, and no challenge to this assessment is contemplated.

Accordingly, I find that the dispute concerning the imposition and quantification of liquidated
damages falls within the category of "excepted matters" and is not subject to arbitration.

4. Costs of Arbitration:

Each party shall bear their respective costs of this arbitration proceeding.

5. Conclusion:

In light of the foregoing findings, I hereby declare that the dispute concerning the imposition and
quantification of liquidated damages under Clause 16.2 of the tender document constitutes an
"excepted matter" under Clause 20.1, and therefore, it is not subject to arbitration.

This Arbitral Award is final and binding upon the parties and shall be enforceable in accordance with
the applicable laws.
Dated this [Date] day of [Month], [Year].

Sincerely,

Rahul Shah (Arbitrator)