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SACHIN DATTA
Satluj Jal Vidyut Nigam Ltd. – Appellant
Versus
Jaiprakash Hyundai Consortium – Respondent
JUDGMENT
O.M.P. (COMM) 170/2017
1. The present petition under Section 34 of the Arbitration and Conciliation Act, 1996 assails the Arbitral Award dated 11.01.2009, read with the order dated 26.02.2009 passed by the Arbitral Tribunal on an application filed by the petitioner under Section 33(1) of the Arbitration and Conciliation Act, 1996.
2. The disputes between the parties pertain to a contract for construction of civil works of pressure shafts and power house complex of the `Nathpa Jhakri Hydro-Electric project'. The subject matter of the dispute is the alleged quantum increase in the minimum wages payable to labour during the course of execution of the contract. It is the case of the respondent (claimant before the Arbitral Tribunal) that, as of 30 days prior to submission of the bid, the minimum wage of unskilled labour, as notified by the State Government of Himachal Pradesh was Rs.22/- per day. It is submitted that after submission of the bid, the minimum wage was increased to Rs.24/- per day w.e.f. 14.11.1993 and thereafter to Rs.26/- per day w.e.f. 01.10.1994. It is stated that thereafter, there was a quantum increase in minimum wage to Rs.45.75/- per day w.e.f. 01.03.199
Every error of law committed by an arbitral tribunal does not fall within the scope of the patent illegality. However, the Court had also clarified that illegality, which goes to the root of the matt....
Point of law: Scope of examination under Section 34 is limited. The decision of the Arbitral Tribunal regarding consideration and interpretation of the Contract is final and this Court cannot supplan....
The Arbitral Tribunal's interpretation of reimbursement based on actual costs incurred due to statutory changes is valid, despite disputes over contract terms, reinforcing the principle of contractua....
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.
Point of law: In terms of Section 21 of the A&C Act, the arbitral proceedings commence on the date of receipt of notice invoking the arbitration agreement.
In terms of Section 21 of the A&C Act, the arbitral proceedings commence on the date of receipt of notice invoking the arbitration agreement.
An arbitrator cannot exceed contractual terms; applying external recommendation outside the agreed terms constitutes a jurisdictional error and is subject to judicial review under Sections 34 and 37 ....
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