IMPORTANT POINT
Only in a case of arithmetical and/or clerical error, arbitral award can be modified and such errors only can be corrected.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 18.03.2021 passed by the High Court of Karnataka at Bengaluru in M.F.A. No.7098 of 2018 (AA), by which the High Court has dismissed the said appeal preferred by the appellant herein under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the ’1996 Act’) and has confirmed the judgment and order passed by the XXIXth Additional City Civil & Sessions Court dismissing arbitration suit (A.S. No. 12/2011) under Section 34 of the 1996 Act and confirming the Arbitral Award dated 04.12.2010, further modified vide order dated 14.01.2011, the original appellant has preferred the present appeal.

2. That the appellant and the respondent herein had entered into an agreement dated 9.7.2003. A dispute arose between the parties relating to recovery of pure gold weighing 3648.80 grams said to have been in the possession of the appellant herein. The respondent invoked the arbitration clause contained in the agreement dated 9.7.2003. The High Court appointed a retired District Judge as the sole arbitrator to adjudicate the dispute between the parties. The respondent filed a claim petition before the learned arbitrator seeking the following reliefs:

“(a) to direct the respondent to deliver pure gold weighing 3648.80 grams to the claimant or in the alternative direct the respondent to pay the claimant a sum of Rs.27,00,112.00 towards the cost of pure gold weighing 3648.80 grams (calculated at the rate of Rs.740 per gram);

(b) to direct the respondent to pay to the claimant a sum of Rs.11,74,545.00 towards the interest amount due on the said amount of Rs.27,00,112.00 (value of pure gold weighing 3648.80 grams) from June 2003 till date of filing of this claim and further interest on the said amounts at 18% per annum during the pendency of these proceedings and until realization of the same;

(c) to direct the respondent to pay to the claimant a sum of Rs.26,50,338.00 towards the loss which has been caused to the claimant on account of the defaults committed by the respondent; and

(d) award costs of the proceedings and such other and further reliefs which are just in the interest of justice and equity.”

3. The learned arbitrator passed an award dated 04.12.2010 directing the appellant herein to return to the claimant/respondent within three months from the date of the award 3648.80 grams of pure gold along with interest @ 18% per annum calculating the value of gold at Rs.740 per gram from 24.07.2004 and up to the date of delivery of the quantity of gold. The learned arbitrator also passed an award that in the alternative, the appellant shall pay to the claimant/respondent within the said period of three months, the market value of 3648.80 grams of pure gold along with interest @ 18% per annum calculating the value of the gold at Rs. 740 per gram from 24.07.2004 till the date of payment.

4. Subsequently, the respondent filed an application under Section 33 of the 1996 Act and requested to modify the award dated 04.12.2010 by correcting computational/arithmetical/clerical error by deleting “at Rs. 740 per gram as claimed in the claim statement” at page 14, second para, line 20 and to delete “Rs.740.00 per gram” at page 17, para 15(b), line 3, and substitute the same by “Rs.20,747/-per 10 grams” at page 17, para 15(b), line 3.

5. The learned arbitrator allowed the said application under Section 33 of the 1996 Act vide order dated 14.01.2011 and corrected the original award dated 04.12.2010 as under:

“(a) the respondent is directed to return to the claimant within three months from today 3,648.80 grams of pure gold along with interest @ 18% per annum calculating the value of gold at Rs.740.00 per gram from 24.07.2004 and up to the date of delivery of that quantity of gold.

(b) in the alternative, the respondent shall pay to the claimant within the said period of three months the market value of 3,648.80 grams of pure gold at [Rs.2