The High Court set aside an arbitral award for specific performance against Haryana Telecom Limited as the company is no longer in business, rendering the award infructuous, and allowed the O.M.P.
The impugned award was set aside and the O.M.P. was allowed.
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versus
HARYANA TELECOM LIMITED ..... Respondent Through: Mr. Abhishek Sharma, Advocate. (M:9654317787)
CORAM: JUSTICE PRATHIBA M. SINGH
O R D E R % 12.12.2018
The present petition has been filed challenging the award dated 8th October, 2007 passed by the learned Sole Arbitrator. The operative portion of the award reads as under: -
“25. The claimant has claimed Rs.5 crore as damages in addition to relief for specific performance. There is no merit in this prayer of the claimant inasmuch as such damages have been claimed for harassment etc. and do not naturally flow from the breach of the contract under Section 73 of the Contract Act. I, thus, make the award as follows:-
III That the respondent shall pay to the claimant Rs.one lac as costs of these proceedings.”
As per the above award, BSNL was to place an order with Haryana Telecom Limited within two months from date of award for supply of underground cables. It is the admitted position as conceded by learned counsel for the Respondent that Haryana Telecom Limited is no longer in business and cannot execute the order, even if the award is upheld. Thus the award itself has been rendered infructuous.
Under these circumstances, the impugned award is set aside as Haryana Telecom Limited is no longer in business.
The O.M.P. is allowed with no order as to costs.
PRATHIBA M. SINGH, J.
DECEMBER 12, 2018
Rekha
Bharat Sanchar Nigam Limited
Haryana Telecom Limited
Prathiba M. Singh
As recorded by the court registry
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