IN THE HIGH COURT OF BOMBAY
MILIND N. JADHAV
Solapur Municipal Transport Undertaking – Appellant
Versus
Ashok Leyland Ltd. – Respondent
JUDGMENT :
1. This is a group of two Writ Petitions, both impugning the order dated 27.06.2023 passed by the learned District Judge, Solapur in Application below Exhibit “5” in Civil Miscellaneous Application (for short “CMA”) No.160 of 2019 filed by Solapur Municipal Transport Undertaking (hereinafter referred to as “Undertaking” for the sake of brevity).
2. Writ Petition No.11827 of 2023 is filed by the Undertaking who is the Claimant in Arbitration proceedings, whereas, Writ Petition No.6147 of 2024 is filed by Ashok Leyland Ltd. (hereinafter referred to as “Company” for the sake of brevity) who is the Respondent – Counter-Claimant in the Arbitration proceedings. Solapur Municipal Corporation is referred to as “Corporation” for the sake of brevity.
3. By the impugned order dated 27.06.2023, learned District Judge allowed Application below Exhibit “5” and granted stay on execution and implementation of the Award of Counter Claim of Rs.21,32,58,592/-, Rs.4,54,06,000/- and Rs. 3,31,60,000/- payable alongwith interest, subject to the Undertaking depositing 50% of the aforesaid amount. Amounts as directed are not deposited. By consent and at joint request of both parties, both Petitions
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:The court emphasized that improper usage of supplied buses on unsuitable roads contributed to defects, and the Undertaking must deposit 25% of the Award amount to stay execution.
Point of Law- Section 126 of the Contract Act, 1872 provides that, a guarantee is a contract to perform the promise or discharge the liability of third person in case of breach or default by that per....
The judgment established that an arbitrator must be impartial and that failure to adhere to legal provisions regarding arbitration can invalidate an award.
Any dispute or difference which may arise between the Parties in connection with this Agreement and which cannot be settled amicably shall be finally settled by arbitration by a sole arbitrator appoi....
Arbitral awards must strictly adhere to contractual obligations, exempting claims without explicit provisions, while interest on delayed payments cannot accrue as interest on interest under Indian la....
The court emphasized that allegations of fraud affecting an arbitral award mandate an unconditional stay pending challenge proceedings, requiring careful judicial evaluation of procedural adherence.
Retrospective recovery of amounts by public authorities must adhere to established tender conditions and principles of natural justice.
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