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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
R RAGHUNANDAN RAO, T.C.D.SEKHAR
Sunrise & Engineering Industries – Appellant
Versus
Hindustan Shipyard Limited – Respondent
JUDGMENT :
R. Raghunandan Rao, J.
As all these appeals raise the same issues and arise out of awards passed by the same Arbitrator, they are being disposed of, by way of this common judgment.
2. Respondent No.1 in all these cases is a Public Sector Undertaking, involved in the construction, fabrication and repairs of various kinds of vessels and other works. The 1st respondent had awarded sub-contracts to various sub-contractors for the aforesaid works. These contracts were awarded under separate work orders. All these work orders contained timelines within which the work was to be completed. In the event of failure to adhere to the timeline, all the contracts provided for liquidated damages to be levied @ 2% per week of delay up to a maximum of 20% of the contract value. The 1st respondent, on the ground that there was delay in all the aforesaid contracts, awarded to the appellants herein, had levied liquidated damages of 20% of the contract value and deducted the same in the bills of the appellants. Aggrieved by the said deduction of liquidated damages, the appellants sought reference to arbitration. A common arbitrator was appointed in all these cases.
3. The details of the claims m
Arbitration Award - An Award however can be interfered with if it is found to be vulnerable under any of the grounds in Section 34 including being in contravention with the fundamental policy of Indi....
(1) Application against arbitral award – Phrase ‘public policy’ does not indicate ‘a catch-all provision’ to challenge awards before an appellate forum on infinite grounds.(2) Whether time is of esse....
The main legal point established in the judgment is that the imposition of liquidated damages must be in line with the contractual terms, and the interpretation of contractual clauses and the waiver ....
Liquidated damages must be genuinely reflective of actual loss; their retention without proof of damage is unjustified under relevant contract provisions.
The appeal was allowed, reinstating the arbitrator's award which concluded that the termination of the contract was illegal due to failure in fulfilling mutual obligations concerning site availabilit....
An arbitrator may award escalated costs due to employer delay despite prohibitory clauses, reinforcing that delays affecting contractor performance can lead to compensatory claims.
Section 8 of Act is an example of referring parties to arbitration.
The court can set aside an arbitral award under Section 34 if it violates substantive law, contract terms, or public policy, especially when procedural requirements aren't met or if the award is pate....
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