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SANJEEV SACHDEVA, RAJENDRA KUMAR VANI
Banco Construction Pvt. Ltd. (M/s. ) – Appellant
Versus
Brajesh Sharma – Respondent
JUDGMENT
Vani, J. -- 1. The appellant impugns the order dated 29.2.2024 passed by the Commercial Court and Commercial appellate Court, Gwalior in MJC AV No.01/2017 under section 34 of the Arbitration & Conciliation Act,1996 (for brevity ‘the Act’) affirming the arbitral award dated 5.10.2016 passed by the learned Sole Arbitrator [Hon‘ble Shri Justice R.B. Dixit (Retd.)]; whereby, an award of Rs.55,97,532/- has been passed in favour of the respondent.
2. In brief, the facts of the case are that a work contract of construction of road was granted to the appellant for construction/upgradation of rural roads under Pradhan Mantri Gramin Sadak Yojna (PMGSY) in Package No.MP-2149 Khandwa by the M.P. Rural Road Development Authority (MPRRDA) vide agreement No.63-K/2008-09 dated 18.2.2009. As per Clause 7.1 of the said agreement subletting upto 25% was permissible with the approval of the employer in writing.
3. Vide agreement dated 14.9.2009, work of Rs.210 lacs was sublet to the respondent. Thereafter, a dispute arose between the parties, therefore, respondent served two notices dated 18.9.2012 on appellant for payment of dues and appointment of Arbitrator in the matter. Since no action wa
The judgment emphasizes the limited scope of interference with arbitral awards and the principle that courts should not interfere with arbitral awards unless there is a patent illegality or violation....
The arbitration agreement's validity is independent of stamp duty on the substantive contract, and courts have limited grounds for interfering with arbitral awards under Section 34 of the Arbitration....
The court affirmed that arbitral awards challenging under Sections 34 and 37 are limited in scope, requiring clear evidence of illegality or perversion; otherwise, the Arbitrator's decision stands.
The judgment emphasizes the limited grounds for interference with arbitral awards under Section 34 of the Arbitration and Conciliation Act, highlighting the need for restraint by courts while examini....
The arbitration agreement's validity is independent of stamp duty issues, and courts have limited grounds for interfering with arbitral awards.
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