IN THE HIGH COURT OF JUDICATURE AT MADRAS
M/s KRK Education Trust – Appellant
Versus
D Prem – Respondent
2025:MHC:2755 In the High Court of Judicature at Madras Reserved on Delivered on: 01.12.2025 04.12.2025 Coram:
The Honourable Mr.Justice N.ANAND VENKATESH Arbitration O.P.(Com.Div.) Nos.48 of 2021 & 59 of 2022 M/s.KRK Education Trust rep. by its Managing Trustee Mr.K.R.Ilanghovan ...Petitioner in Arb.O.P.No.48 of 2021 &
Respondent in Arb.O.P.No.59 of 2022 Vs Mr.D.Prem, Proprietor, M/s.D Square, Tiruchirapalli. ...Respondent in Arb.O.P.No.48 of
2021 &
Petitioner in Arb.O.P.No.59 of
2022 PETITIONS under (i) Section 34(2)(a)(ii) of the Arbitration and Conciliation Act, 1996 praying to set aside the award dated 06.2.2020 to the extent the rejected portion of the claim of the petitioner is concerned (Arb.O.P.(Com.Div.) No.48 of 2021); and (ii) Section 34(2) of the Arbitration and Conciliation Act, 1996 praying to set aside the arbitral award dated 06.2.2020 passed by the learned Arbitrators in Arbitration No.Nil of 2015 pertaining to the disputes between the petitioner and the respondent (Arb.O.P.
(Com.Div.) No.59 of 2022).
For Petitioner in Arb.O.P.No.48 of 2021 &
Respondent in Arb.O.P.No.59 of 2022 : Ms.Tanya Kapoor For Respondent in Arb.O.P.No.48 of 2021 &
Petitioner in Arb.O.P.No.59 of 2022 : Mr.K.S.Viswanathan, SC for Mrs.T.Hemalatha COMMON ORDER The petitioner in Arbitration O.P.(Com.Div.) No.48 of 2021 was the claimant and the petitioner in Arbitration O.P.(Com.Div) No.59 of
2022 was the respondent before the Arbitral Tribunal. They will be identified in this common order in line with their respective ranking before the Arbitral Tribunal.
2. Heard both.
3. The claimant filed Arbitration O.P.(Com.Div.) No.48 of 2021 against the award passed by the Arbitral Tribunal dated 06.2.2020, the extent, to which, certain claims made by the claimant came to be rejected. The respondent filed Arbitration O.P.(Com.Div.) No.59 of 2022 with regard to that portion of the award, which directed the respondent to refund a sum of Rs.49,09,745/- to the claimant and as against the rejection of their counter claim.
4. The facts leading to filing of these cases are as follows:
(i) During the relevant point of time, the claimant was in the process of establishing an engineering and management college. For that purpose, they identified 26 acres of land in Pulivalam Village, Tiruchirapalli to establish the said college. One M/s.Ainthiram Developers Private Limited approached the claimant giving their expertise for undertaking the project. They also introduced two potential contractors to do the work. They are (a) one M/s.Sha Constructions; and (b) the respondent.
(ii) Upon the representations made, a work order was issued by the claimant to the respondent on 12.4.2010 for civil works at a cost computed at the rate of Rs.800/- per sq.ft. According to the claimant, this was agreed based on the usage calculation of 5 Kgs of steel per sq.ft., provided by the Architect. A contract was also entered into between the parties on 12.4.2010. As per the contract, it was specifically agreed that the amounts would be payable to the respondent only on certification of the bills by the Architect.
(iii) Apart from other terms of the contract, Clause 24.1(c)
provided for dispute resolution through arbitration. In so far as the respondent was concerned, the contract was awarded specifically for execution of works in Block C. The project was executed between April 2010 and December 2011. Certain payments were made to the respondent and ultimately, when the final bill was raised, it was alleged that the Architect approved the same mechanically. When the claimant pointed out the mistakes in the certification, the Architect rectified the same and revised the certified bill.
(iv) Subsequently, various disputes arose between the parties, which led to the appointment of the Arbitral Tribunal.
(v) The claimant filed a statement of claim before the Arbitral Tribunal by raising the following disputes: “(a) difference in steel consumption – not as per specification by Structural Engineer;
(b) defect
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