Back
IN THE HIGH COURT OF JUDICATURE AT MADRAS
INDIRA BANERJEE, ABDUL QUDDHOSE, JJ.
Project Director, Tamil Nadu Road Sector Project II, - Appellant
Versus
M/s. RNS Infrastructure Ltd - GPL (JC), & Others - Respondents
O.S.A. No. 301 of 2017 & C.M.P. No. 18730 of 2017
Decided On : 09-02-2018
Letters Patent – Clause 15 – Arbitration and Conciliation Act, 1996 – Sections 34, 37 – Setting Aside of Arbitration Order – Instant appeal has been filed by the Appellant under Clause 15 of the Letters Patent read with Section 37 of the Arbitration and Conciliation Act, 1996, against the order of the learned Single Judge passed in O.P.No.256 of 2013, dismissing the petition filed by the Appellant under Section 34 of the Arbitration and Conciliation Act, 1996, seeking to set aside the Arbitration Award passed by the Arbitral Tribunal against the Appellant – Held, Arbitrator has considered each and every objection raised by the Appellant and only thereafter the Award has been passed in favour of the first respondent – Arbitrator has passed a reasoned and detailed Award – The learned Single Judge has also considered all the grounds of challenge raised by the Appellant under Section 34 of the Arbitration and Conciliation Act, 1996 in accordance with law and has rightly come to the conclusion that there is no scope for interference under Section 34 of the Act – Court is in agreement with the decision of the learned Single Judge and hold that no ground has been made out by the Appellant to challenge the Arbitration Award – Appeal Dismissed
Abdul Quddhose, J.
1. The instant appeal has been filed by the Appellant under Clause 15 of the Letters Patent read with Section 37 of the Arbitration and Conciliation Act, 1996, against the order of the learned Single Judge dated 08.02.2017 passed in O.P.No.256 of 2013, dismissing the petition filed by the Appellant under Section 34 of the Arbitration and Conciliation Act, 1996, seeking to set aside the Arbitration Award dated 30.04.2011 passed by the Arbitral Tribunal against the Appellant.
2. The Arbitral Tribunal, comprising of the Second respondent as the Presiding Arbitrator and the third and fourth respondents as the Arbitrators, passed the following Arbitration Award against the Appellant.
Summary of the Award:
| Claim No. | Description | Claim Amount (in INR) | Award Amount (in INR) |
| 1.a | Redetermination of Time Extension and Refund of L.D. Levied. | 1,51,93,924 | 1,50,00,191 |
| 1.b | De-freezing of indices for the quantity of work executed beyond the disputed extended period. | 2,01,00,523 | 1,42,91,340 |
| 2.a | Idling of Machinery | 7,76,44,627 | 3,41,39,143 |
| 2.b | Loss in Overhead | 5,25,45,954 | 2,73,36,525 |
| 2.c | Loss of Profit | 3,50,30,636 | 31,84,603 |
| 3 | Revised Rate for the quantity of work executed beyond the O.C.P. | 22,09,71,592 | 10,07,23,370 |
| 4 | Payment of Interest |
|
|
| 4.1 | Interest for claim no.1.a | At 18% per annum from the date on which the L.D. is levied till the date of Award | At 10% per annum s.i., on the amount awarded from the date the claim was made to the Engineer till the date of Award: Rs.31,72,643 |
| 4.2 | Interest for claim no.1.b | At 18% per annum from the date on which the induces were frozen till the date of Award. | At 10% per annum s.i., on the amount awarded from the date the claim was made to the Engineer till the date of Award: Rs.30,22,716 |
| 4.3 | Interest for claim no.2.a | At 18% per annum from the date on which the claimant started incurring damage till the date of Award. | At 10% per annum s.i., on the amount awarded from the date the claim was made to the Engineer till the date of Award: Rs.72,20,663 |
| 4.4 | Interest for claim no.2.b | At 18% per annum from the date on which the claimant started incurring damage till the date of Award. | At 10% per annum s.i., on the amount awarded from the date the claim was made to the Engineer till the date of Award: Rs.57,81,862 |
| 4.5 | Interest for claim no.2.c | At 18% per annum from the date on which the claimant started incurring damage till the date of Award. | At 10% per annum s.i., on the amount awarded from the date the claim was made to the Engineer till the date of Award: Rs.6,73,565 |
| 4.6 | Interest for claim no.3. | At 18% per annum from the date on which they started incurring damage till the date of Award | At 10% per annum s.i., on the amount awarded from the date the claim was made to the Engineer till the date of Award: Rs.2,13,03,683 |
| 4.7 | Interest on all the Sum Awarded | At 18% per annum on the Sums Awarded from the date of Award till the date of Actual payment. | At 18% per annum simple interest from the date of award on all the awarded sums till the date of payment if the awarded amounts are not paid by the Respondent to the Claimants within one month from the date of award |
3. There arose disputes between the Appellant and the first respondent under the contract dated 30.11.2005, by which the Appellant awarded a contract to the first respondent for the work of upgrading the Road from Ramanathapuram to Tuticorin. The first respondent made claims against the Appellant, as mentioned supra before the Arbitral Tribunal comprising of the second, third and fourth Respondents constituted in accordance with the arbitration clause contained in the contract. Even though, the first Respondent made a l
SupremeToday
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
