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SUJOY PAUL, VINAY SARAF
Lahere Traders (M/s. ) Through Sole Proprietor Deepak Sonkar – Appellant
Versus
Union of India Through Divisional Railway Manager DRM Office – Respondent
JUDGMENT
1. With the consent, finally heard.
2. This appeal filed under section 37 of Arbitration and Conciliation Act 1996 (Arbitration Act) takes exception to the order dated 28.10.2003, whereby the Court below rejected the application filed by the appellant under section 9 of the Arbitration Act.
3. Draped in brevity, the admitted facts between the parties are that an agreement was entered into between them regarding parking at Itarsi Railways Station on 27.2.2017 and its duration was from 17.8.2018 to 16.8.2023. The grievance of the appellant is that during this period, the Covid Pandemic broke out. Because of that, for certain period, he could not get any business but continued to pay the licence fee. Thus, it was his expectation that the contract period will be suitably extended. Clause 10 of the relevant contract provides that the contract is renewal for a period of three months at a time and maximum upto nine months. By invoking this Clause although the period of contract was extended upto 14.11.2023, the Railway Administration entered into another contract with another agency, which will come into force w.e.f. 15.11.2023.
Appellant’s contention :--
The court has the discretion to extend the mandate of the Arbitral Tribunal based on the circumstances, such as the impact of the Covid pandemic and the complexities of the case.
The court emphasized the importance of considering relevant evidence and court orders in arbitration proceedings and held that a decision based on irrelevant or unproven evidence can be considered pe....
The court affirmed that an Arbitrator retains authority to grant damages despite contractual clauses seeming to prohibit such claims, provided the termination of the contract is deemed illegal.
The court affirmed that under the Arbitration and Conciliation Act, extensions of time for the arbitral tribunal are valid and can occur through mutual consent in exceptional circumstances.
The main legal point established in the judgment is the interpretation of contract terms and the implications of accepting or declining contract extension conditions in the context of imposing penalt....
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