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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
MOUSHUMI BHATTACHARYA, B.R.MADHUSUDHAN RAO
NCC Limited – Appellant
Versus
Elecon EPC Projects Limited – Respondent
JUDGMENT :
(Moushumi Bhattacharya, J.)
1. The Appeal, filed under section 37(1)(b) of The Arbitration and Conciliation Act, 1996, assails an order passed by the learned Commercial Court on 30.03.2022 in Commercial Original Petition No.79 of 2017. By the impugned order, the Commercial Court dismissed the appellant’s petition filed under section 34 of the 1996 Act for setting aside an Award dated 17.12.2016.
2. The appellant was the respondent in the arbitration. The respondent No.1 was the claimant. The arbitration culminated in the Award dated 17.12.2016 passed by a Tribunal consisting of three learned Arbitrators. Apart from challenging the impugned order dated 30.03.2022 passed by the Commercial Court, the appellant also seeks to set aside the Award dated 17.12.2016. The appellant however restricts the scope of the Appeal to the extent of the loss of profit awarded by the Arbitral Tribunal in favour of the respondent No.1/claimant.
3. But first, a brief narration of the relevant facts leading to the Award and the impugned order.
4. In June, 2012, M/s. Gayathri Projects Limited (GPL)/Principal Employer issued a Tender Notification inviting bids for designs, engineering, supplies, erect
The court upheld the arbitral award for loss of profits, affirming that failure to notify a contract's termination constituted a material breach, justifying compensation under the Indian Contract Act....
(1) Setting aside arbitral award – Claim for damages, whether general or special, cannot as a matter of course result in an award without proof of claimant having suffered injury.(2) Binding Preceden....
An arbitrator's award can be set aside if it is based on a fundamental breach of contract that ignores material clauses of the agreement, leading to a finding that is perverse and constitutes a paten....
The non-breaching party is entitled to damages that place them in a position as if the contract had been performed, with the awarded loss of profits upheld based on reasonable calculations.
The court affirmed that the scope of interference in arbitral awards is limited, emphasizing that awards can only be set aside on specific grounds, including patent illegality or violation of public ....
The need for evidence to establish loss of profits and the court's discretion to modify the interest rate as agreed upon by the parties.
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