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2023 Supreme(Jhk) 472

IN THE HIGH COURT OF JHARKHAND AT RANCHI
SUJIT NARAYAN PRASAD, RATNAKER BHENGRA, JJ.
The State of Jharkhand – Appellant
Versus
M/s Alternative For India Development - Respondent
Commercial Appeal No.07 of 2018
Decided on : 21-07-2023

Advocates:
Advocate Appeared:
For the Appellants : Mr. Sachin Kumar, Ms. Surabhi, Adv
For the Respondent:Mr. Harendra Kr. Mahato, Mrs. Ahalya Mahato, Ms. Jyotsna Mahato, Advocate

Headnote:

Commercial Courts Act, 2015 – Section 13 – Arbitration and Conciliation Act, 1996 - Section 34 ,33 (4) and 34(2)(b)(ii) – Arbitration – Arbitral award – Setting aside – Appeal against judgment – Held, aforesaid finding, suggests that it is not that there is no order on counter claim, as has been argued rather, order has been passed on counter claim awarding Rs.9,47,706/- towards claim made under head of 70% share of amount received by Claimant from citizens by offering government services plus a lump sum amount towards delay caused in disbursement of said amount of share of State Government ,counter claim has also been considered and Award has been passed holding State entitled for aforesaid amount – Award passed by learned sole Arbitrator since suffers from no error, having not found to be contrary to public policy , is of view that order passed by learned court requires no interference in exercise of power of judicial review – Appeal dismissed

JUDGMENT :

Sujit Narayan Prasad, J.

The instant appeal preferred by the State under Section 13 of the Commercial Courts Act, 2015 is directed against the judgment dated 25.06.2018 passed in Commercial (REVOC) Case No. 05 of 2017 by the Presiding Officer, Commercial Court, Ranchi, whereby and whereunder the said case filed on behalf of the present appellant under Section 34 of the Arbitration and Conciliation Act, 1996 for setting aside the part of the arbitral award dated 02.06.2017 and additional award dated 07.07.2017 passed in Arbitration Case No. 01 of 2016 by learned Sole Arbitrator, whereby the claimant awarded with revenue support for the total number of 594 Common Services Centres @ Rs. 3284/- per Common Service Centres per month calculated from 26.11.2012 to 25.06.2016 totaling to Rs. 7,91,61,051/- plus interest upon the same as per the prime lending rate of State Bank of India for the applicable period to be calculated from November, 2012 till actual payment to the claimant, as well as the part of the impugned arbitral award dated 02.06.2017, whereby against the counter claim of Rs.13,40,63,107/-only Rs.9,47,706/- with lump sum amount of Rs. 2,00,000/- only awarded to the opposite party (appellant) as well as against the order dated 11.08.2017 passed in the Arbitration Case No. 01 of 2016 by the learned Sole Arbitrator rejecting the application under Section 33 (4) of the Arbitration and Conciliation Act, 1996 filed on behalf of the opposite party (present appellant) has been dismissed by the learned Commercial Court, Ranchi by the judgment dated 25.06.2018 passed in Commercial (REVOC) Case No. 05 of 2017.

2. The brief facts of the case which are required to be enumerated, reads hereunder as :-

The Government of Jharkhand intended to provide convenient and speedy Government Services to the citizens, using Information and Technologies Communication through Common Services Centers (CSCs). The CSCs will be utilized as efficient distribution channels through which the Government of Jharkhand can offer its services, information and schemes etc. to citizens in a cost effective, sustainable and efficient manner. To undertake the delivery of Government Services on a Public Private Partnership basis, the Government of Jharkhand intends to appoint Service Centre Agencies (SCAs) to roll out and manage the CSCs in the State of Jharkhand and offer revenue support to the SCAS, as mutually agreed and accepted by the State Designated Agency (SDA) through the SCA's Financial Bid.

Therefore for the purpose of providing the said services, such as issuance and preparation of Aadhar Card, Voter ID, Caste Certificates, residential certificates etc., the SCA was required to be engaged for the setting up such CSCs, at least one CSC in a Panchayat, in the different districts/division of the State. The Common Services Centers are also known as Pragya Kendra.

Therefore, a tender for rolling out and operation of around 4500 Common Service Centres in 5 divisions of the State of Jharkhand was floated. Accordingly, M/s Alternative For India Development, respondent herein, submitted its technical and commercial bid for 600 CSCs in Palamau Division in response to the tender and the said bid was accepted by the SDA.

Thereafter, the Master Service Agreement (MSA) was entered into on 11th April, 2007 for establishing 600 CSCs in Palamau Division. It has been mentioned in the Request for Proposal (RFP) that in each Panchayat of the Palamau Division at least one CSC was to be established, roll out and made operational. There were 600 Panchayats in the entire Palamau Division. As such, at least/minimum 600 nos. of CSCs were essentially required to be rolled out and operated by the SCA in the Palamau Division in accordance with RFP, the bid documents and the Agreement.

Clause-2.3 of the MSA provided for roll out of CSCs, the schedule for completion of Rollout with cumulative percentage of minimum number of CSCS in each division to be rolled out. As per the said cl

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