Vs
Case brief
What is this about?
The High Court dismissed a petition filed by the Union of India to set aside an arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996. The Court upheld the arbitrator's findings on cost escalation and various claims but modified the awarded interest rate from 18% to 9% to align with prevailing commercial rates.
What did the court decide?
Interest rate on the award reduced from 18% to 9% p.a.; original petition dismissed.
What the court decided
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07.04.2011
CORAM:
THE HONOURABLE MR.JUSTICE VINOD K.SHARMA O.P.No.433 of 2003 Union of India, Rep. by its Executive Engineer, BSNL, Civil Division III, Ethiraj Salai, Chennai � 600 008.
vs.
- Shri T.Panicker
- Shri A.K.Nayak (Retd) Sole Arbitrator, Principal Chief Engineer (Arbitration), Mohan Singh Place (6th Floor), Baba Kharak Singh Marg, New Delhi � 110 001. ... Respondents.
Original Petition is filed under Section 34 (1) of the Arbitration and Conciliation Act, 1996, to set aside the award No.PCE(ARB)CE of the second respondent dated 23.01.2003 passed in Arbitration case.
For Petitioner : Mr.S.Udaya Kumar
For Respondents : Mr.A.R.Janakan
O R D E R
Issues for consideration
3 issues framed by the court
Whether the High Court can interfere with the arbitral award on the ground that it is contrary to the terms of the contract.
Whether the right to grant escalation of prices is conditional only upon a stipulated period of work exceeding a specific duration.
Whether the interest rate awarded by the arbitral arbitrator should be adjusted to the prevailing commercial rate.
Parties & counsel
- petitioner
Union of India
- respondent
T.Panicker
- respondent
A.K.Nayak
Coram
Case details
As recorded by the court registry
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