Judicial modification of an arbitral award is permitted under Section 34 of the Arbitration and Conciliation Act, allowing courts to ensure efficient dispute resolution while preventing redundant arbitration.

ORDER :

1. These appeals have been filed under Section 37 of the Arbitration and Conciliation Act, 1996, read with Section 13 of the Commercial Courts Act, 2015, assailing the order dated 13.09.2022 passed by the Commercial Court No. 4, Jaipur Metropolitan-II, Jaipur, whereby the common arbitral award dated 18.02.2015 and the subsequent order dated 17.05.2015 passed by the learned Sole Arbitrator were set aside. The operative portion of the order reads as follows:

2. At this juncture, it is pertinent to clarify that the present batch of appeals has been preferred by two sets of parties, firstly, the Rajasthan Rajya Vidyut Utpadan Nigam Limited (hereinafter referred to as “the RRVUNL”), and secondly, the cement companies, namely Mangalam Cement Limited, Birla Corporation Limited, Shree Cement Limited, ACC Limited, and Ultratech Cement Limited, (hereinafter collectively referred to as “the claimants”)

3. Since the factual matrix, contractual framework, and the controversy involved in all these appeals are substantially identical, this Court considers it appropriate to decide the entire batch by a common judgment. Accordingly, for the sake of convenience and to avoid repetition, the facts and reliefs are being referred to from D.B. Civil Misc. Appeal No. 3106/2022, Mangalam Cement Limited v. Rajasthan Rajya Vidyut Utpadan Nigam Limited and D.B. Civil Misc. Appeal No. 3192/2022, Rajasthan Rajya Vidyut Utpadan Nigam Limited v. Mangalam Cement Limited . The findings and conclusions recorded herein shall mutatis mutandis govern all other connected appeals filed by both sides.

4. D.B. Civil Misc. Appeal No. 3106/2022 has been preferred by the claimant, seeking the following reliefs:

“The humble Appellant most respectfully craves for grant of the following reliefs:

1. This appeal may kindly be taken on record and allowed;

2. The Objection Petition No. 191/2018 (C.I.S. No. 369/2019), titled Rajasthan Rajya Vidyut Utpadan Nigam Limited v. Mangalam Cement Limited , filed by the Respondent before the learned Commercial Court below, may kindly be dismissed;

3. The Counter-Claim filed by the Respondent before the learned Sole Arbitrator may kindly be dismissed;

4. The amount received by the Respondent from the Appellant for supply of dry fly ash at the rate of Rs. 245/- per metric ton may kindly be directed to be refunded to the Appellant;

5. Such other and further orders directions, or reliefs as this Hon’ble Court may deem just and proper in the facts and circumstances of the present case may kindly also be passed in favour of the humble Appellant.”

5. D.B. Civil Misc. Appeal No. 3192/2022 has been preferred by the Nigam, seeking the following relief:

“It is, therefore, most humbly and respectfully prayed that this Hon’ble Court may graciously be pleased to accept and allow the present appeal and be pleased to quash and set aside the impugned common order/judgment dated 13.09.2022 passed in Arbitration Application Case No. 19/2018, C.I.S. No. 368/2019, ( Mangalam Cement Limited v. Rajasthan Rajya Vidyut Utpadan Nigam Limited ) by the learned Commercial Court No. 4, Jaipur Metropolitan–II, Jaipur, Rajasthan; and consequently, be pleased to allow the Arbitration Application filed by the Appellant–RRVUNL before the learned Commercial Court under Section 34 of the Arbitration and Conciliation Act, 1996.

Any other order or direction as this Hon’ble Court may deem just and proper in the facts and circumstances of the case may kindly also be passed in favour of the Appellant.”

6. The present dispute arises out of a Notification dated 14.09.1999 issued by the Ministry of Environment and Forests, Government of India, mandating that all coal or lignite-based thermal power plants, including those operated by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), shall make dry fly ash available free of cost for a period of ten years from the date of publication of the notification. The said notification was issued with the object of promoting the utilization