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IN THE HIGH COURT AT CALCUTTA
SOUMEN SEN, BISWAROOP CHOWDHURY
State of West Bengal – Appellant
Versus
M.R. Builders – Respondent
JUDGMENT :
Soumen Sen, J.
1. The present appeal filed under Section 37 of the of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the said Act) arises out of a judgment dated 28th January, 2019 passed by the Learned District Judge, Uttar Dinajpur in Misc Case No.115 of 2014 whereby the application under Section 34 of the Act filed by the appellant herein was dismissed and the Arbitral Award dated 12th July 2007 in AP No. 18 of 2000 was affirmed.
2. Shorn of details, the relevant facts are stated hereinafter.
3. The claimant contractor in the arbitration proceeding is the respondent herein and the respondent in the arbitration proceeding is the appellant herein.
4. The appellant invited sealed tender for construction of cross-drainage structure at 28.15 km of D.N.M.C. in PS Islampur, District- Uttar Dinajpur and the participating tenderers were required to submit their tender on the basis of departmental schedule of rates attached to tender papers on 'at par' or 'percentage above' or 'percentage below' basis. In pursuance to the said tender, the respondent contractor submitted his tender on 19th January, 1995 and appellant issued work order to the respondent by le
An arbitrator may award escalated costs due to employer delay despite prohibitory clauses, reinforcing that delays affecting contractor performance can lead to compensatory claims.
Arbitration Agreement – Award -Scope of interference by the courts into the award is quite limited. A court considering an application under Section 30 of the Act neither sits in appeal over an award....
An arbitrator cannot exceed jurisdiction by awarding claims not supported by written approval as mandated by the contract, rendering the award illegal.
The court upheld the Arbitral Tribunal's award on escalation claims, affirming the limited grounds for judicial interference under Section 34 of the Arbitration and Conciliation Act, 1996.
The court affirmed that an arbitral award can be set aside if it contravenes the terms of the contract or exceeds the jurisdiction of the arbitrator, emphasizing the importance of notified claims.
The judgment emphasizes the limited scope of interference with arbitral awards and the principle that courts should not interfere with arbitral awards unless there is a patent illegality or violation....
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