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IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL)
Twamev Construction And Infrastructure Limited – Appellant
Versus
Kolkata Municipal Corporation – Respondent
JUDGMENT :
SHAMPA DUTT (PAUL), J.
1. The writ application has been preferred praying for a direction upon the Kolkata Environmental Improvement Investment Program (KEIPP) being the respondent No.2 herein to refund/reimburse the extra amount of Rs.5,46,10,108/- withheld by the respondent no.2 along with interest accrued thereof to the petitioner.
2. The petitioner’s case is that by a tender dated 25th March, 2016, Kolkata Environmental Improvement Investment Program by a publication in a local newspaper invited bid for a project for sewerage and drainage network in Rania Box Catchment (Part of ward 111, 112, & 113) in Borough XI, Contract Package No.KEIIP/NCB/TR-2/SD10/2015-16, for an amount of Rs.76,02,79,999.80. The petitioner being eligible for such projects and adhering to the guidelines of the said tender, submitted its financial proposal on 17th October, 2016.
3. The respondent no.2 being the project director, by letter dated 17th October, 2016 accepted the bid and/or financial proposal dated 25th March, 2016 for execution of the sewerage and drainage network in Rania Box Catchment (Part of ward 111, 112, & 113) in Borough XI, Contract Package No.KEIIP/NCB/TR-2/SD10/2015-16 there
The existence of an arbitration clause mandates dispute resolution through arbitration, and mere allegations of fraud do not preclude this process.
Mere allegations of fraud do not inherently preclude arbitration unless they raise complex issues requiring a full trial; straightforward financial disputes remain arbitrable under the Arbitration an....
The main legal point established in the judgment is that serious allegations of fraud and the pending criminal case against a party may make it improper to refer disputes to arbitration, leading to t....
Allegations of financial misconduct must establish criminal intent; mere breach of contract does not constitute a criminal offence under IPC sections 406 and 420.
The court held that allegations of fraud and misappropriation of funds, when inter se and with no public implications, are arbitrable under the Arbitration and Conciliation Act, 1996.
Point of law: civil aspect of fraud is considered to be arbitrable in contemporary arbitration jurisprudence, with the only exception being where the allegation is that the arbitration agreement itse....
The court affirmed that objections regarding non-arbitrability of disputes are not to be considered at the pre-referral stage under Section 11(6) of the Arbitration and Conciliation Act, 1996.
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