Advocates:
['S D D', 'PHATARPHEKAR', 'RUSTAMJI', 'GINWALA']

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY

ORDINARY

ORDINARY ORIGINAL CIVIL JURISDICTION

ORIGINAL CIVIL JURISDICTION

ORIGINAL CIVIL JURISDICTION

APPEAL NO.1147 OF 1998

APPEAL NO.1147 OF 1998

APPEAL NO.1147 OF 1998

IN

IN

IN

ARBITRATION PETITION NO.177 of 1994

ARBITRATION PETITION NO.177 of 1994

ARBITRATION PETITION NO.177 of 1994

M/s.Mukund Limited, a Company )

incorporated under the Indian )

Companies Act, 1913 (VII of 1913) )

having its registered office at )

Lal Bahadur Shastri Marg, Kurla, )

Bombay - 400 070. ) ..Appellant.

V/s.

Hindustan Petroleum Corporation )

Limited, a Govt. of India )

enterprises and a Govt. Co. )

within the meaning of Companies )

Act, 1956 and having its )

registered office at 17, Jamshedji )

Tata Road, Bombay - 400 020. ) ..Respondent.

Dr.V.D.Tulzapurkar, Senior Advocate with Alpana Ghone

i/b. Shah Desai Doijode & Phatarphekar for appellant.

Mr.V.C.Kotwal Senior Advocate along with M.D.Sisodia

i/b.Rustamji & Dinesh Mulla & Ginwala for respondent.

CORAM : R.M.LODHA AND

CORAM : R.M.LODHA AND

CORAM : R.M.LODHA AND J.P.DEVADHAR, JJ.

J.P.DEVADHAR, JJ.

J.P.DEVADHAR, JJ.

JUDGMENT RESERVED ON 3RD DECEMBER, 2004

JUDGMENT RESERVED ON 3RD DECEMBER, 2004

JUDGMENT RESERVED ON 3RD DECEMBER, 2004.

JUDGMENT PRONOUNCED ON 17TH DECEMBER, 2004

JUDGMENT PRONOUNCED ON 17TH DECEMBER, 2004

JUDGMENT PRONOUNCED ON 17TH DECEMBER, 2004.

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ORAL JUDGMENT (PER J.P. DEVADHAR, J.)

ORAL JUDGMENT (PER J.P. DEVADHAR, J.)

ORAL JUDGMENT (PER J.P. DEVADHAR, J.)

1. By an award dated 27th June, 1994 made under

the provisions of the Arbitration Act, 1940, the

learned arbitrator held that on account of breach of

contract the appellant is liable to pay to the

respondent a sum of Rs.1,26,67,529.10 together with

costs quantified at Rs,75,600/-. The appellant

challenged the said award by filing an arbitration

petition No.177 of 1994. The learned Single Judge

while upholding the award reduced the quantum from

Rs.1,26,67,529.10 to Rs.71,31,954.40 and passed a

decree in favour of the respondent and against the

appellant in terms of the modified award. Challenging

the said decree, the appellant has filed the present

appeal.

2. The facts relevant for this appeal are that

pursuant to a tender enquiry floated by the respondent

on 7/11/1989 for design, fabrication and commissioning

of Propane-de Asphalting heater (PDA heater) at Mahul,

Mumbai, the appellant in association with Engineering

India Ltd. (EIL), New Delhi submitted its price bid

offer on 6/2/1990. Thereafter, several meetings were

held between the appellant and the respondent pursuant

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to which, the appellant agreed to revise the bid price

and also ex