beyond the scope of agreement. Faced with the situation, learned counsel for the appellant has placed reliance upon the case of Oil & Natural Gas Corporation Ltd. Vs. Saw Pipes Ltd. 2003(5) SCC 705, to contend that if an award is passed contrary to substantive provisions of law or the Arbitration and Conciliation Act or against the terms of contract, the same would be patently illegal and subject to interference under Section 34(2)(a) (v) of the Act. I have gone through the aforesaid authority. In that case on the request of contractor the time for supplying the goods was extended on the condition that ONGC would recover the agreed stipulated damages, which, at the time of finalization of bill was deducted accordingly. The contractor laid challenge to the said deduction before the Arbitrator and consequently the said deduction was set aside by the Arbitrator on the ground that ONGC had failed to establish that it had suffered any monetary loss and directed the same to be refunded together with interest. However, the Hon'ble Apex Court set aside the award and held that such an award is violative of Section 28(2) and (3) and can be set aside under Section 34(2) of the Act. But the same is not the situation in the instant case. The claims were settled by the Arbitrator on the basis of material on record, which were within its ambit.
