IN THE HIGH COURT OF JUDICATURE AT MADRAS
MR. JUSTICE ABDUL QUDDHOSE, J
G.Sakthi Constructions – Appellant
Versus
Union of India, rep. through Deputy Chief Engineer/MTP(R)/Southern Railway – Respondent
ORDER :
Abdul Quddhose, J.
This petition has been filed under Section 34 of the Arbitration and Conciliation Act, challenging the impugned Arbitral Award dated 24.01.2022 passed by the Arbitrator.
2.The petitioner is the claimant and the respondent is the respondent in the arbitration. The petitioner was a contractor appointed by the respondent. There arose disputes between the petitioner and the respondent under the said contract. In accordance with the arbitration clause, the petitioner had invoked arbitration. In accordance with the arbitration clause, an Arbitrator was appointed from the panel of Arbitrators maintained by the respondent. Both the parties participated in the arbitration. The petitioner had made various claims before the Arbitrator against the respondent. The details of the claims made by the petitioner against the respondent and the amounts awarded by the Arbitrator under the Award are summarised hereunder:
| S.Nos. | Description of claim | As per SOC | Amount awarded by AT |
| 1 | Tender Form Cost | 10,930.00 | NIL |
| 2 | Earnest Money Deposit | 3,67,180.00 | 3,67,180.00 |
| 3 | Tools for site lab | 70,000.00 | 52,500.00 |
| 4 | Labour for providing site shed | 50,000.00 | 50,000.00 |
| 5 | Material for providing site shed | 1,06,525.00 | 80,0 |
An arbitral award must be reasoned per Section 31(3) of the Arbitration and Conciliation Act; failure to provide reasons for rejecting claims renders the award arbitrary and subject to being set asid....
The court affirmed the limited scope of review under Section 34 of the Arbitration and Conciliation Act, emphasizing respect for arbitral awards unless stark violations of public policy or procedural....
The Court emphasized the limited scope of jurisdiction under Section 34 of the Act and the need for evidence to support claims for loss of profit.
The main legal point established in the judgment is the correct interpretation and application of contractual provisions in arbitration disputes.
The court emphasized that arbitral awards should not be interfered with solely based on disagreements with findings, affirming the limited grounds for appeal under Section 34 of the Arbitration Act.
The court emphasized the requirement for the arbitrator to assign reasons in support of the award and the limited scope of interference by the court in arbitration awards.
Point of Law : Arbitration and Conciliation - Application for set aside Arbitral Award - Claim for pre-reference interest on Claims - While Arbitral Tribunal has awarded interest on amounts that were....
An arbitral award must provide clear and intelligible reasoning; lack thereof renders it void under Section 34 of the Arbitration Act.
The scope of interference with an Arbitral Award under Section 34 of the Arbitration and Conciliation Act, 1996 is fairly limited and narrow. The Courts shall not sit in an appeal while adjudicating ....
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