Original petition setting aside an arbitration award awarded Rs 8.23 lakh for materials. The Tribunal rejected higher claims as vouchers were fabricated. Bench dismissed the petition, holding no basis for re-appreciation of evidence.
Petition dismissed. No costs awarded.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 11.07.2019
CORAM :
THE HONOURABLE MR. JUSTICE N.SATHISH KUMAR
O.P.No.725 of 2014
Om Spun Pipes & Concrete Works, PRR Coony, Kavvur, Nellore District (A.P.) - 524 137. Represented by its Proprietor K.Satyanarayan Raju .. Petitioner Vs.
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PRAYER: Petition filed under Section 34 of the Arbitration and Conciliation Act, 1996 to set aside the Award dated 07.07.2014 passed by the fourth respondent in dispute between the petitioner and the respondents 1 to 3 made in Arbitration Dispute, bearing letter No.G.16/DGM/ARB/2011/25, dated 13.03.2013 and thereby, allow the petitioner's claim.
For Petitioner : Mr.D.Padmanabhan
For Respondents : Mr.P.T.Ramkumar
O R D E R
This petition has been filed challenging the Award dated 07.07.2014 passed by the Arbitral Tribunal.
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Claim Description of Claim Amount
No. claimed (Rs.)
1. Idling of labour and machiner awaiting to 2,37,40,000/-
start the work from 01.12.2007 to
07.04.2009 (493 days) that is till the
foreclosure of the work
2. The materials were purchased for the 17,17,750/-
work and could not be utilized due to not
allowing the work to be executed and
some lost in wear and tear and theft and
balance resold in market at 50% of cost
of materials is claimed
3. Claim for expenditure incurred on test 60,000/-
reports which were not finalized
(approx.)
4. Loss of expenditure incurred on 2,00,000/-
establishment of office building, godown
for materials, sheds and mess charges
5. Loss o profit at 10% of the agreement 29,25,130/-
value for not allowing the work to be
executed.
6. Damages claimed on the expenditure Not quantified
incurred on claim Nos.1, 2, 3 & 4 at
15% p.a. till the date of their payment
has not appreciated the fact that the respondents have committed breach of contract by unilaterally terminating the contract without any justifiable reasons
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and thereby caused, huge loss to the petitioner, who had done all the required works for commencing the work allotted to the petitioner. The Arbitral Tribunal has not considered the entire evidence and mechanically negatived the claim of the petitioner and the Award has to be set aside.
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Index : Yes/ No Internet : Yes Speaking/Non-speaking Order
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To
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N.SATHISH KUMAR, J.
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O.P.No.725 of 2014
11.07.2019
3 issues framed by the court
Whether the High Court can re-appreciate evidence to set aside the award where the Arbitral Tribunal found claim vouchers were fabricated.
If the work was not commenced by the petitioner, whether the award dismissing claims for idling of labour and machinery is sustainable.
Whether any ground exists under Section 34 of the Arbitration and Conciliation Act to interfere with the award passed by the Arbitral Tribunal.
1 provisions across 1 enactments
Om Spun Pipes & Concrete Works
Union of India
Arbitral Tribunal
A. Selvaraj
R. Mukund
N. Sathish Kumar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
