IN THE HIGH COURT OF JUDICATURE AT PATNA
BIRENDRA KUMAR, J.
The State of Bihar through The Secretary Road Construction Department & Ors. - Petitioners
Versus
M/s J.K.M. Infra Projects Ltd. (M/s Kamal Builders) - Respondent
Civil Revision No.49 of 2016
Decided On : 22-02-2019
Bihar Public Works Contracts Disputes Arbitration Tribunal Act - Challenge to Tribunal's Award - Section 13 - Reference Case No. 22 of 2012 - Summary of Acts and Sections: Bihar Public Works Contracts Disputes Arbitration Tribunal Act, 2008, Section 13 - The court discussed the scope and ambit of the jurisdiction of the court to interfere with an arbitral award, citing case law and emphasizing that the court cannot substitute its own evaluation of the conclusion of law or facts. The court also highlighted that unless there is a jurisdictional infraction by the Arbitral Tribunal in making of the award or the award suffers from manifest illegality or material irregularity, it is not to be interfered with in a routine manner.
Fact of the Case:
The Road Construction Department challenged the award of Bihar Public Works Contracts Disputes Arbitration Tribunal dated 19.01.2015 in Reference Case No. 22 of 2012, whereby the respondent contractor has been allowed three crores and odd against the claim of ten crores and odd for extra lead, on the ground that the stone chips and bitumens were not carried via the nearest route as agreed between the parties.
Finding of the Court:
The court found that the appellant's challenge to the award, based on it being made beyond the agreement between the parties, cannot be considered at the stage of judicial review of the impugned award. The court emphasized that it cannot look into the reasonableness of the reasons assigned by the arbitrators and that the scope of judicial review is limited to specific eventualities set out in Section 13 of the Act.
Issues: The main issue was whether the award made by the Tribunal was beyond the agreement between the parties and whether it could be challenged under Section 13 of the Bihar Public Works Contracts Disputes Arbitration Tribunal Act, 2008.
Ratio Decidendi: The court's decision was based on the principle that unless there is a jurisdictional infraction by the Arbitral Tribunal in making of the award or the award suffers from manifest illegality or material irregularity, it is not to be interfered with in a routine manner.
Final Decision: The court dismissed the civil revision as devoid of merit, emphasizing that it cannot go into disputed questions of facts in exercise of supervisory jurisdiction nor can substitute its own view based on the same materials.
Heard learned counsel for the parties.
2. This Civil Revision has preferred under Section 13 of the Bihar Public Works Contracts Disputes Arbitration Tribunal Act, 2008, against the award of the Tribunal. The Road Construction Department has challenged the award of Bihar Public Works Contracts Disputes Arbitration Tribunal dated 19.01.2015 in Reference Case No. 22 of 2012, whereby the respondent contractor has been allowed three crores and odd against the claim of ten crores and odd for extra lead. Challenge is on the ground that the stone chips and bitumens were not carried via nearest route as agreed between the parties.
3. While considering the aforesaid issue the Tribunal has discussed the letter issued by the Executive Engineer of the department, to the Superintending Engineer, informing the bad condition of Ara-Sasaram road at that time which was not motorable and fit for transportation of construction material i.e. metals and chips. Recommendation was that if the contractor carries the goods via a longer route, he should be reimbursed for extra lead subject to production of challan and that was permissible from June, 2008. The Tribunal examined other materials also and awarded the aforesaid amount.
4. Grievance of the petitioners is that the Tribunal should not have awarded anything beyond the agreed amount in contravention or contrary to the agreement between the parties.
5. Learned counsel for the opposite party submits that the contract does not bar consideration of the situation on the spot at the time of execution of the work. Moreover, the extra lead has been claimed only on getting permission of the petitioners authorities to carry goods through the convenient motorable route.
6. The scope of the judicial review of the order of the Tribunal under Section 13 of the Act stands circumscribed to the eventualities set out in Section 13 of the Act itself. Moreover, by different judicial pronouncements, the law with regard to the scope and ambit of the jurisdiction of the court to interfere with an arbitral award is also well settled. Reference may be made to the case State of Rajasthan vs. Puri Construction Company Ltd. And Others reported in 1994 (6) SCC 485 wherein, the Hon'ble Supreme Court observed as follows :
“The arbitrator is the final arbiter for the dispute between the parties and it is not open to challenge the award on the ground that the arbitrator has drawn his own conclusion or has failed to appreciate the facts. In Sudarshan Trading Company vs. Govt. of Kerala 1989 (2) SCC 38. It has been held by this Court that there is a distinction between disputes as to the jurisdiction of the arbitrator and the disputes as to in what way that jurisdiction should be exercised. There may be a conflict as to the power of the arbitrator to grant of particular remedy. One has to determine the distinction between an error within the jurisdiction and an error in access of the jurisdiction. Court cannot substitute its own evaluation of the conclusion of law or facts to come to the conclusion that the arbitrator had acted contrary to the bargain between the parties. (emphasis supplied) whether a particular amount was liable to be paid is a decision within the competency of the arbitrator. By purporting to construe the contract the court cannot take upon itself the burden of saying that this was contrary to the contract and as such beyond jurisdiction. If on a view taken of a contract, the decision of the arbitrator on certain amounts awarded is a possible view though perhaps not the only correct view, the award cannot be examined by the Court. Where the reasons have been given by the arbitrator in making the award the court cannot examined reasonableness of the reasons. If the parties have selected their own forum, the deciding forum must be conceded the power of appraisement of evidence. The arbitrator is the sole judge of the quality as well as the quantity evidence and it will not be for the court to take upon itself
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