M/S Kwality Construction Engineers vs Union Of India on 13 October, 2011

[Cites 5, Cited by 0]

Karnataka High Court

M/S Kwality Construction Engineers vs Union Of India on 13 October, 2011

Bench: N.K.Patil, C.R.Kumaraswamy

MFA 10033/2006_ ' 

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MISCELLANECUS FIRST f 2006

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Kemderia Sadan, Koramangaia
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2. Sn', C A Shyamsunder
Arbitrator, No,132§ 12% D Cross,
1719" Main, 22""? Phase? J P Nagar,  .  . V .
Bangalore 560 £3278,   [R'=:spQ:::d€_i1:_s._V"'

(By Sri Y Hariprasad, ASG for R._L,

R2 - Natice dispensed With) ' '

This appeal is filed u_r1d€é:" SV€...r:t:ia.n*37{EV} (if -A_ArbA1Firati0n
and Conciliatian Act agétiﬁsi _%:heV£:f;_1d,gn1§;ent and Order
dated 5.5.2006 passed in AC1.N0L233]97'%3*f:,!i}':»fjfﬂé of the Vi
Add}. City Civil Judge; Bangaloré,1;.7._?e;rt1y Allowing
the petition filed milder S<3'éﬁi0;1:: 3.4'««.QfV_th-egérbitratiorx and
Conciliatien Act, [~'ch;:»;1.1enga%ng%:he "aw::rd-----dat€d 3041997
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ANB:

M/S Kwaiity Constructian
Engineers 27» I 67/ IO
Ameer Pet, Hyderabad ~« 16
Represented by _-- ~ ---  ~ ,   
V Neeiakanta Razz).  "" " ";;.l§€*.1sp(2r1¢i'c::*ir,
(BY Sri A Madhusudhana Rae, AdVOC'.E1tE'}_V

This appeal is filed undeir Sgction 
and Conciliation Act against the-,vJ'm..§1gmeI1t.'Wand? Order

dated 56.2006 passed in:--'i4;C.N(:»;'i2';3'j.:<;?C7 am the filiéiiéf the VI
Addl. City Civil Judge, «}3}5_rig:_1102§fr5vV,4"C_CC'H.No.1i; partly
allowing the peiitian filed' uiidér _.-.S&éfciQ'f;.34 of the
Arbitration and C,Qnci1ia4:i<3nf  agai.rjiS't the award
dta3Q64.497 passed by the ;§irb;ittato«r_."'  u 

These a;o'péf:eJ.3"""'é_re   for hciaring this
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pariéjy' aiigwing ihe gseiitian fiisd under Seétiiem 34 9f the

ACE chalienging 3:235: éisaiiomng Claim 12:33. E 1? E9 angiié'-1"§{~.V_

2. MFA s7?4g2oo@ is filed under sectggﬁ  H

the Act aga.i:13t the judgment and ;éfEié'r«dé:_te<i  

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Passed in A.c:No.23/G7 on :;h:éfi1eV2>f Ehe VI.,'..;Add}§' 

Civil Judge, Bangakzre Cﬁgz,  pafiE};"a;;-ov}i;1gVVVthe
petition fﬂeé under Secﬁsn  3*:2'%iA31':T:13E the

award dated 3094' 3997 pasvv_s§'TC1._V?§3;.?V t1<-is 

3; MR1-X" £"QQ§.3.}{06«.I§s__iE3;s;d«"b§?i_' Kwality Construction
Enginears fiiéd by tbs Union :3?
India chaiiésn "if; ' and arder defied 36.2996

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National historv at Mvsore. The tender was a'é:€0fé'<§""'c'?}7"T V'
./ .1 , 1. _ _. 5

the respondent -W quality Construciiogmw» The zigrgéérzégnt :§;&?:"£:\a--SV'-V.'

signed on 17.8.1989, As per the t8;fm$':'::éf"Tvi:h[Té-- the respcmdeant - Censtructiash :f;;':3::1pé;i*:§§_> $~h;éi} {he construction activities §1;§Aai'i'A"»::©ﬁrnpIete the same by 25.8.3993 campany has campiﬁteé Ehﬁ. any penalty.

The final bill The aontractor '%.1é;._"V5ii=§:'§§itrator on 17.1.1995 $36,: 'I?' ::1<3r1 €i?';s"f':§<3:*';':: final bill. As per Ciause :25 cf :31: agfeeﬁzsata C:3r:::"a.<:%:::2r is suppegsé :0 ,&j§p:fGa<§.h':'iE:~€, £33316? Efégéﬁesr ii?§f{Ei":§£i 9Q days fmm {E26 data Q::§ga:Am§%%gg%;:g;g,2:395 £338 Se;:ar€z:":e:1fi ap§§%§£ed {he L""--~vvz:a.:*'bii:"§§':::;:'. arégiéraisr €E'1'§Ef€d appearanca :33:

~ .fjv23_§§;-if},3;9§S,,,4.$.::§ 25:23 §:'C2V§S§$§3 <35 E§%£5ei'} ﬂsi was zzsacie §:¢«»>f/ ; $§ f§444€¢!-(665125:4-:4»//////1:-.«.»- aisgﬁcabie, 3:23 Eéafféﬁﬁ arbiirazar has me? gassed {E26 award xxsithirg £1334? mgmhs f2"Q:'?{: ihe éate Sf r&ferenc1e--,. "§T14i€:_ saiﬁ award was chaﬂengeé befgre éihe £30123":

Judge by filing an Arbitration Ca-:'~:~e_1.m;:§1s:." of the Arbitratian and Cermiiiatien A<;Ef::A DiStric: gmdge disallowed me sléziggii-...NQs.A1'--E.V§ :9 "am allowed the ether ciaims:_.With_ E8'¢}%:v..,..W%*;ich is c0r1tra?j; ":9 the iaw.

6. 'Tbs: 't'i:<*::Afindings of the Cam': below is V' . ' No to the neﬁce ef the Saar: %::e10:%* '2:{§§9:icEvi '$13 géariies {<2 aaééhdraav atsizgjseézz zxfégiéézgérgs gévﬁyz ':}§; E336 gmiéééezzei" - Uyaéera af §:2.di§_,'V..,§§'Ee:%E§? ,§s.::.:a,1:s€ sazbséqazezai ggeiitiener warzissd ts:

2:=:r:§Zra&E~:7'a1;;i%%.«?£§E*:;:=:« 7;:::j»:s__::::;¥s;':;:%.:, £13,': $3 $25? maieréai. ?E:€::"€fﬁ2"€§ Sig VI £2'?-'£'1'E€'f';1.",Z§§3TE {if 32%: Efniﬁza GE Enééa :x5s;$ $30': gsgamabiéﬁ V x 'V g '<./x.» r-

petizienﬁr aha: tbs 036 Easy gheuké 33:3 :{<:;§E<;éw€a' Wag Set aaceptabie.

8. The trial Court has alga; obgci-razed ihat.V§}£cV:1eé;:":iéc? T' arbitrator has awarded Rs&2,30,000f§ Learned Arbitrator has erred in tic-V--t taking' 1 i11itQ"' corisideratizm ihé Siaiement :he evidence availabls an Vi"v,'}.A1€VAVV"x?&"I'£Z>I1g Qaiculatien giver: by__the of which 8.

sum of this daim an fh€ grc2Ug'n"ci:V arbitrator has I he has net properly cansédered éxgfédezice; E3; 5:3 furthér s:,i:>;3:e::d'€,1%f{ 'V Eégata és%*:ﬁeé arbétratésm has awaydeé :?:3_,E/{}:3.: G{}'Q igfafardg deiay ﬁn makirig abs $3}-'E"ﬁ€E"§.'§C anti ibis a339i:§.u::Vi ':$.E"2-::p;::§Léé1x 320%: havg been a:~*3§de£"i as the ﬁaéa"

. T 37' was 9:: ifézef §a.:"?;§ 4:3? '£15 E'€S§QE':d€§'1'€ and £32. 82386 sf €:2<:$::$:§:3r:

was ﬁg: saiééled 5:2? essaiaiiag: f38i}7§§'E€§'§E ::::r:€§;$r £5? ,3 eiause E8 of {he agreemem. E': is Stated that the time was extended by the E'€SpC::'}€i€I'1t because cf which he wj:'~:.$_"'::e~t_ entitled te eiaim. Learned arbitrator has eonsizziereﬁ'--.1iE1§:S*1..._' centention while answering claim t1ie"'fe8;$0fiVp3;:t forth for the delay in first payment i:3e'ing';'_':11e iégte"re'eej:§£,,.g,f'::vT«A indieies is hardly convincing a'$V._€:;'E1.ej; 1&5-ire beefg by sister divisions of epwp. r1;ee}i¢1a3:e..,1A;1 ee£§"m.eni:f§Cou1d have been reﬁueed greatléf?' autherities acting eX.pediti0u&':1y;D eeneiuded that it was rwg§s4'V_re.e.peensib1e for delay in payments Aeetztiiied fer eompeneatien far {he de1::;iJ_«iﬁ Ii' 9<_;' '?Eij:e Eéas ebeeeixed 'aha: ééze ieairned ;?%:bi§ra:e:' .e;i«ze.réed Rs.4334;9@Q;/- as yeémeursemem. ef se;2eé:.._f;s§é';ée;§eﬁ'~{§1?: the \:="e3*€~:e eenzeaee, has beee s::§::e}§e::ge"::*£ téie aeeeﬁant Beige {:5 kzéiae E35; eeméeaééeg ._f£§'Z:?'§x%2»V'§:§:&'~.3;€V:y;.{if tax hag eeeae égee feree grief ie reeeigji G? yr' '> / éww' m.«.Wmwm«m.m.mm.M._...._,,.,..,,..,. ténésr amt} ﬁance} me :°€$penci&:1*sE is Eéable ':0 pay :his arnouzzi and that Caﬁﬁéi be r€é::*:':>L::"sed. It is si.¢2;:€:<4:¥:...V':i*:.;;i.:;.V_ the sales ta}: an Works Contract came £310 farce §v'§§:h":*:fiEf§:f;_?: fmm E31 Aprﬂ E986 and the tender hag be§:'::"'s'£t_;n§i{tv6d subsequent to 131:, Le. on 8"? Maj,» F989---, HéT::;:e,'T*:3ve:§' ai time of tender; such sales tax was" forée va;:::c_i :'Lj.a1{§A}fV1g~i1';'ﬁQ consideration the sales tax is payfa,bV1'€v,_ the respaniderit has giver: the tender and 1:><:*<:a1i's<§«:;f ';:,f';'?:§:71er:ef::;'3V:13 quﬁsiiorz <::f reimbursing that amé grit"

E0. The ;€eiri€:_ed " A:?<§iff:>:a€é:3f haé CO1'1Sid€E'€d this under €:Ea.i1i:1 ..'i'h.e: 'z'.c§é3.s_::.1':.i:ia,g given by thé learned Arbitratsr is 1i%:_5i ~?§'1€"'Wf§€V'§3.E,; :j4:>i/2 was filed chaﬂenging {ks §mp<:3sé?iQ;;: "05 the saléé '{8}: an vwfsrks asgirasi zvéih éffﬁﬁt §:'::7m §g§:z:*:E§ and in :h.?:: Wri': ggetsiiémzﬁ £2: 2as*a$ ma Ehgé:€}i:é..jv:g€§gff;v§3;f:V:j5;9€2:;:E:§ he sgoeraiting f:%*s::>;. £%§:é§ §_9§£% Q13-2«V&,1"§$"}"3f3{3 7fEf§i%iC€, acserfiimg ':23 Lmtii E3? Aprii E%%?*Ca

--. §§';§'::f?*€A5:3§§«<}:E€3£§1'£ wag saiéiéﬁai fa? §€§I'1:':§EL3_:fS€§':":€E}'{ 95 33168 "x 5a5,s««"' 1% tax paiﬁ by Ezirna The Eearrxeéi Eirbitfaiar gbserves that the F€$pG3'1d€ﬁ'[ has :29: producsd any matsrial ':0 Shaw ihgighs was a part}? to that judgment 91' how the}:

applicable :0 his case, In spite sf suchgn <:>?;s§é'r'2*.%i:io r:=, the learned Arbitratar has awardec:i this a:f10?;::1f;._ Court has also Qbserved f;hzat"<V3gf:JF':c%}': ...v§as not a party to that judgrngfmt, given benefits cf it. Hence; *av,.,xfEn;:§:- ESV '»produc:«3d any material to Show 'applicable {:0 him, the benefit. The said judgm,::::'1'§ praducéd aad ii is :10': Clear H'?0_w" E36 applicable for the Case cf the :"e$ponc;ié::2:;' it -::a;.;? that $316 said juégrzzené: was :_v8;{§}}3:iC€2'§§_,':i€ '£315 pi:'"1:ie::---::*10f éhaé cage, but thaé canzéoi bé §;§'§;_§:§€::;i is %i::ii§:<::.:*':<;..T_a2--$@» "§':1€:'€fQr€, 331:? Trial Cauzé cgme éa {:a:1§'E;é;Si@:§ .'£§ié;af the cguggiésgtz af zaizrzfazgrgﬁzzierzt Sf $2363

-. '_fj -:;a_;>:~.é:§ 5:316" .§:';é}~$;§<>née:":'a déeg :30': 2;%z:*és€, T326 irefgéaz' af ﬁne ya cu,"/;"' am?' respazzdsni 3'alb?.'n§.'€'£€::§ an 81?': Maj; F928? is subsequent ta} sihé Coming irééo fC3£"CZ€' 9? $16 saié Saks 'Tgx Ac: is 13»:

2986. Hence, the respendent aughz to krmw be Bahia to pay {be 391653 ::3g_;a:1d "i1f1}'::.<;> consideratiorég the tender sheuld hé3.Ve1'_"§:r<£é:iTT*.s{1?§f;1§i'§é'd.. V.' {ﬁnder such circumstances? 1:.}1'é.t the sesponderst has {ca pay. sa}e;sV..ﬁ%§§;v.aS-._.;§erh'1:he-.sa3,.:;s Tax Act} ii: 13? Aprii 1986 ancf';:§;;h*;*' ':9 know that he will be :§aia}=;e_:e iakiﬁg into censideratian <95' have been submitted. ":i<":f':"' £Pw§€r :0 award f€imburS€:%f€'n'1E"_Gf %§:;> have been paid '£33; {£15 :<:'$pe::{:i€:::. Tféaé Cam': Eéeéd Ehat: E318 §::é1s§2§::<:§}$%f: ::":s3f: s":"}:i:i§:*::E'is f€Ci3V§f the amaun': a,Ward€<:i ' '€525 ;5%f§:2E:':a§{;§¢ $.39" 'E"' §i25'"'"§::f§aE Cam": Ezszg 3332;} £:>'£::s€:*::*€é £333: £216 ._§$:3::::€'aﬁ*=.5'§.;i*bi::*.2::.t$z* avazarﬁsé a; 3:323: Q? E$.é§3@§C:€?§;'« $3 y,, I E3 compsnsaéjan fer iieéajg, Ths agapaliané has chalisngeé 'shig by <:c3n?:€ndirag that i': has extenﬁed 131% {$3136 ii:1j2.i.:_T'-2f}i3::_ completien of the work without levy sf C0m}:--é§_I:éa:§{.§2--:é} Hence, the centraci: was extended am:_:i,":h_€ r€sjj'ej::d:§%n5;"W'aVs not entitled to any compensation. T116 i:'éa:"Vné{&. Arfbiti*a§iaf ¥.' has considered this while an3V%:V§§*i.§1xg award under the head é€:;C.>ff1}Z)€§1$£;*"~;i};O_I'i"--».Vi_fC3¥_ﬂiﬁéi}/'>.,M § It is abserved that the resp0n§,Rif}.:- E;;35§§» }s<u)21:ivgiv:"«:V:.'cQmper13a':i0r1 {>111}; Egowardg ha was requirad to igfi l'Uf§)#iL[hS clue to the axtended pergied. no fauh: on his par?' 11: is aise period was axiended due :0 the <>::1ig<;?':;i0'r:sVs:;_f §ij16'~::'©p€i?_ani: Uniezz <25 Endéa and iiﬁerg visﬁé gispgage"§§--'*'<3é1r':%:aas'sz*}c<: €XC3.V8;'{iO}T§ G156: aznsag ﬁne appeiigni E233 s':e§p€<:§ '£16; xvgrk '«..rf.C>§' 0:25' ._j§;é3.:.:.2§:'€i. '$3153: gar: éé: €X€€'i3'§€:'i by Cagézég far 536$}: ~ jf::"§€:::;i€:: 'EE'i:3:fé 2as"§;$ daiaj; is €XCaE?8;i}:{3E'Z2. wa:r§<: Qua :0 ﬁts act ya 15% 0:" the appellant Unier: :35 india éiseif. Eimiiaﬁy, them was :3. prszbie-In far approach 5:3 the site $3? a bag time, as portion approach Qf site was me: acquired and _ dispute about the approach mad, H;-f;j91f1b(:e3 tE':e"Ai}bi{1*ﬁt'0: '4 has observed that the delay wa$ cau'$ed::'d1z;e ta 1;hEé' the appellant itself and beCauséTV_'§--f.V..§t, co1jtf,§§iét._:pe:ir;d has been extended and {hag delay rzcfg d{ie* fault an the side ef the responfiéxzgéI,}:1§§é§ j${4;ﬁi:1":.'9'V:::i:§:umstar:Ces, the Eearned Arbitrgtgrv_}1as::'i§b}s§%2'§:§:i«.§h§x';Vth:;§:V'é.'%3pe11an: has to Ccampensate V:?:féVVresp0ndent due:

ta such :E*;;s. 1;équ£r$d :0 maintain the estabiishrxﬂlé-Qt') in inée cansidaraticn afii the §"€1€V:f,';E3'ij C;iiiiC{;ZE?f1S"§.'8J;'A1'?".i¢i'VS~~,"AV ﬁﬁs Eéarnecé ﬁrbitraior has V-'[a§;a:'3::i'§<%:i ::é1§é"2s::::*:e::un*: arm? these :13 EEG 383.391: :9 éiafaréié 35:" E: ..

E2'; Trsiaé Qatar: has aése e'bs$:":fe£§ ﬁat 'aim E€f§3;;:*::é:iL---j:§§%3§':§a%:er 3233 awarded RS.:§§}5C3Cig[v :::rw9.r§;s axira 2% V Wm» Cﬂ items is E63363' ameuni is géaid' This has bees Chakieggeﬁ E3}? the appééiané; Unien Qf Endia by sirniénding :hat_4.§.:_:'h_é::;' paid. the amsunt and {his was bmught to the :1e:;?:,§:__Cr$é*:»':f Arbitrator and in spite 0f it, payme:f;:,lf_1as bé'éf:--:i:.:e:i €?"§é§:23 The Eearned Arbitrater has) COf1Sid€fh3Ci iihis 3{s;pér: i :1i";v::[:i<::f V.A claim No.3}. in the award and paymefim were I1"l8.d€ by jshe aﬁévance payments in :"11§:ni:1g biﬁé 3§§1;.'V:.a'd;§us:ed in the final bill. Hence?" in rejscting 'zhs axtra itemg 'x;a%:hout assigning any reas<>::'--%*i$._ :::3E '§§:rCsfp€;%.:*-.andi"'g?:;sti_iab1e. 56306, the ieamed Afb_itfat0r_V%:%i::. stéicmzégi Rs.3E;.5GC3i"~g Tbs '"f:°iai C9231": is sf 3:h€L"e::§3i:3éVe::_ :i~é&i'~.-fﬁhers is me §rs:::p€r :"eas<:>n fay' clai:':': 'éiéaz-:33: thsé appeéglarzf: hgg Egkerz :Zr;J:0 acé:r§ :;r:*{ ::§':é'~p'a§r':':i:aT_éi2: maﬁa £23 2116 part gag,/"meg: 'bﬁés arid ;.s«

4.? hag §:.;~,$.ia? t§j%::5: Ei§;::;§a:1£e 333231321: a': ma raga agfsaad. E52293

-. 3:/as :2$€'§:i§;§;:€r £3: aha Eéarned ﬁrbiizaiar 33 azarazd azéy /, ameunt under 'ihie heaéing. ﬁe prepee eeaeens are given fer aiiowing {his eiaim and because ef ii? this par":

award is iiable to be set aside;

13. The Trial Ceurt hag a1s;"e»AA»Ve§5eer€r*ed' Arbitrater has awarded interest' can the e'Ward_a';:,:1tOuht 18% 13.31. from W December dé;?e'A"0fV':pe:}jment.

The appellant Union offyfidia this award ef interest is; Vnet priepver-._ ii s'e"er:'~~f£:.ajt the award has been passedi_'e'r{§;;3G"3 Ee'3_9.7V."'.H'e:r;'ee3 the interest for the period s'§L1V.bsieVqVuefi:' 0f the award will be payable date-;.e_'_ -- But the Arbitrator has ewaréed in:e':vee:é%*e:":1 Li' 19'§}Sg 1%: is eeen 'that; GEE e1;;e}::; 'e§:3i:;r23 Eeefzzeei gﬁrbitraier bee ewerded ;37§i::::fg:.e;§ a.ift1£3}.::r1A%;'--..e:r:d inteeesi en the: ameuné eaieuéeiecl; gig ﬁeEfééh"E'€§2v:re§§§§'ee:° E995, Begzeef 3: %:3::en: Stage; ':'§:ae Eearneﬁ Aziei-irate? 3233 me: eeieuéaiedi ézsfiereeé ezibeeghgené:

"v3§}*°';~-Eeveezaber E§§%5° geese? ﬁg ihe f;'s§€?&'{f§V€ geriiezm /"

ihe inisrest has been awarrieé fmm W Deasemberr $95 an the aweﬁdad amounz. éiencea €\"€I1 éhough Ehs:

shauld have been awarded frem {he date sf award; still? there £3 nathéng wrong it is ail-di%;?édT'_pri'Gr"E.o f it for the raaser: that; {ram 38? Dc:&<:€inb<;.~*:_f~§;V'§,3¥9;'§;"L:f1:i:1 date of passing the award an 3(,'?§";/¥.pr§1 AI"99"}"',_ ii1.:6:*gf:-'S*:'.:x¢'éLs not awarded an an}; Qihsr }1--eé;d«if1g.,LA Thé;'€f0r.é, the appeilanﬁs comtsntien wazg i11:>?:

14' 'FhE: 'ub':ss€:'\;ed that the appellant' has :p;a§r%'ﬂj.«:>';VsL1'§::::3<é€{:€%'d.. égjrid award so far as it relates ta 'g:1ai_rr11A£§§r:;:_:.Ei .fo'r. EZs_§25[,OOO;"~§ claim No.29 fer Rs.4,35§?9G§f~V._L4'ggr:<:§'.'"f\§é%.3E 59:" R3,3E,5GQ is :10: Susiaénaﬁgié ;and Visﬁéabés E9 32% rzzadéféeé :8 aha: §§Q:€IEE, '$313,s;::7:,@z,gz}%w.3aAjéN:?§€é; E33; the z'%r%3it§at@r is Rs.E8§12§S5€}J 933$ ihé ::§~§§é.E%3wed :12 ::ha ﬁp§€E'§ is Rss%;8E,5%~Q£3f;'--e §§:5::<:§, ifga §;y:3:§;éi@%;*: Was: aéémved in gaﬂt aand éhs azzrezé $5 =,§§§'";é_'*§;:;'%j§'§?;EifSL'iL{}§" 'a?'J&S maciiféeég aid 33% aggséiaﬁt 2?;-'33 difssisd Kw < __f <«///// 1:9 pay $3113; Rs,13?3£§}50;'-- is the mgponéent; with interest at 18% per aninum {mm 18? ﬁesembeg' E995 actual payment.

15. Feeling aggrievsd by the; sarﬁr:-,--V fhe'1'Aap:pe11;-_;ii::V__ Union of India has preferreci vM.F.A;*N{§'.'--8?74;'7i3(§O5', V various grounds; Feeling aggrievé"<§.._V';f;}f_ thé'~:%'iﬂvSTaEi1ov:::ing of the claim Ncssk i L 19 and':3_f"?«. r§V-..<A;§')«:>.;";.riTAé:f;'£ 1\IL/'Si Kwaiity Construction preferred

16. Wé" "f§A:ear'€E., ihe Eéarfzed saunas} for 'the appeﬁant Eﬁiﬁdrz of End€'avé;s_fQi:*€E§V.--~as ihe éearned Caunsd fer' €esp@n§en: Ex/1;' E<:':;v;:§;%.:yA'=C§:é$::'"ur:§é<>:: Engineera, in beih f;f}%1 e::e agégéafi-S. Egg:/égiéfussa' the '§'1'§ai C0221": :*ec::>:°dss, E. S§:';*_éf':"}'T;; E£a.:r€p%:a3a§;. Esarrzgé C-sziirai Ga:$:$:":'::3}4:'7e:32;:ii" St:;é::1é§:3g C§u1::s€§ appearing fer 81$ firgé pmmﬁ KO respenden: Mjs. Kwaiii}? Censtruczion E):*:g1'r1€e:'$ submitg as Lmdér:

The Court beiew has <:0m:n:ti:ed__--*;.. s<4:*'i*'L{)j'z;::.:¥3:"v--.--_' irregularities. The Court beiaw haS_,.:r.i.u:;: <:C;i'i§it':e§%v<;><:f"t'l'1c; material evidence and tbs grQunds"'1.p*e§:§te~d tfxefeiil, award passed by the ieaVrnedVL!i?;:§f'"s,:i_traﬁ€3r:__«wwtffie Public }30h'C}-". The Order. flip €3pi1rt--..b§§0VV i3 illegal and centrary is to 10, 12, :3, 1648; 18A, ;_8':~aj;,; to 39, 32, 33 and 34 vveré :;é§.:$s.igning any proper reasons, by ihe Eearnsé S036 Arbitratsr the learned Diszrict Judgé :::r<;_ f:r:p:':'€@};::$.,iV'?§L3_"Eé$pn€é QiS?ZE"§€{ Juﬁgs faéésé E9 §:T{}f.§:Ef %'~';fb'iE;i'3;:i>r has :16 gufiséiciéozi 13:; pass 322%"; '",3€3'*3" April 1%??? zaréﬁggazt :E~i€E§.{§§"E§ ""'~='<::vX'a%:::sé:>_;: {>35 as cazziempiaésgi iifédéi" Séestéazis 28 azgd " £16 éwiifziiz {ear mamiizs fmm the dgie of ﬁﬂiéféiig /3 "

3?':/X 28 me reierence. Th6 §earms§ Diatrici juége furiher failed is 33:13 {hat the arbitrai prsceedéngs was initiated Old Act of §§4~C» and when such being thza .

Earned Arbitrator Gught is have pas_s§::d__the_--'é.é>;7'a§:§{};';<r:d::r 01:1 Act of 1940 01113,; and further the =;ea:#neTd_ ;A;fb§§i5;:af'¥iVT_' has no jurisdictien to invo1<L§i~:_v""~t.h€ Aprgv-isié;1s"Aw.__ 0~fw...:--he Arbitration and CQt1<:i_1ia':iQ_n ;%c:,V.§...9§;{j%_ *i5;i.:h0L1_f:'€h§3 Qﬁnsent of the pariiies ar {e S6335{KG"$7§:*Z$l'1§itZ§:fi {}§V3:316 under Ssctien 28 9f the §9:{<;Q_A<:f:;'.A

18. Thé --1;iiE§L;I;ifi:€3C} iﬁas erred in taking mots that'. the_ 1"}??? January 1995 fear appeirzizzaeni *5fh€"';9";_1f;§Z?VI{':ETe":;;1:"'£~?j>:'?L4"'JL§i'i§<3Y aha Aréiiratiam Act; 1948 :a5a;}s§ 'fszegée 3g:.§ii:a'§§a is abs cage ax: hgzszd. £32: £333 §e3 a:':é3&x:i 393% :§:rf:§i;t:°a:0§ E133 pasged; 33$ a.v<;5.:*d Egslﬁéng ':3/13;': {E36 é~§L§§2'éA'AV%:L: é';:.__ap§i)'§§cs.'§§s¢ ?§f1$§"é:?§€}§<;g fzééé Arbizratar 60:31:83 '22;::.<i€:* ﬁgs ""§i:::*€§€:a? sf Egfissanduaz, The Eeargzsi-d §1%$tr§}:'§ §§:i{i.gs 'E;-:;g%:: me have :*€3f€z:t€:i 35% {E35 €1a§;::*:3° Furihaig §3e§*6 xx x is no pmvisiasrz E0 award Erétersesi at 3.8% pa. under tbs 615! AC: of 1949. Eiveii assuming if 1996 ACE £3 ap§3§iQab§$.7V"§4"%€.,_ Eearnctd Arbitrator Shauld r1<:>thave awarded 38% pa. The ieamed District Jzidggﬁvagght-"EC"set .4 aside the award of the Arbitrater, 0r:{":.fEhé: g:*oLi:nd*tf1af claims of the contractgr were ...t}ie learned District Judge haggzot :j'T3.A(A'T}i'i173»€:. The Earned Arbitratsr has :Eg:1{'§4f*c§«'§h" '€:§?;eV and {E16 Svédence as zj¢<:<};::*d._ Judge Gught to have sat ' 'é¥'0u:r:d that the 'arbitrate: ha§"::1§§;c0:i§;::Cié3:i"~§::ir:iSis}? '§a;:»r nan cansideration sf aﬁ the réE.e:r*a,r:': «:icr1s::1;1mE3r;ts:.,?$§: zequireé under Ssciion 3 read withS§E:%;~ri1:;E:<%_'§i, '--.giEé;*ﬁse 5, by Arbitratsrg i2VhiCh :.e:fn%--$11::"ié " :23: :?;1Aisc<:>:91'G'L'::{::} T?;:€ Eiaazrzaé ﬁésiréct Judgé f::f'?:ié:,j_ »v49f::;:a_"::2é::'i€ €383': '£26 a.p§e§1'1t:::ez':': ca? ihas "A"~V'";'%,rbé:ra:_§§ 199,213 §::§::§fr;n* :9 EQQS Aci and hsnsa faééufa Q @533 " C .":§:_e"'»:%1axra:"§" 2§?§:i'3§:: iiaﬁ giipzgéatéé §}€F§.Gd is ééaérsie :0 hs $9: aside. The iesarneé ﬁistrici Judge faéieﬂ :9 EEEBEE than: {ha Arbitratm" Cauld neat preceeﬁ wiihout arbityai pr:>Ce€:3:i:f;.g$-. after expiry of fear menths. The learned further faﬂéd :5 Hate that the appeﬂa_:':3: }_:_>jy fii_S.§éV't'tVéf: . 30*» March 1997, withdraw the app1i<§'abi:§§':}>V'TVQf and therefore, the learned /.Z£.1:}::?§itIfa.tOi;V. directed {he parties :3 ;.:a,.}.:>pro';';-6%;' f:.hé..__Cigrﬂ'=CQ1;é": for extensisn if time} but, i:1"4'tEﬁ1_§:' hand, he has me: dame $<:2._.V"}."--V¥f§'::€:'--.. {)£stric1; Judge in his 1996 was that thésre to withdraw Glﬁé such csnsefgz. ' ._ 19,} $%f::i s'i;;'A?€Ea§h::$:;§§,hana Rag? Eeafsizeﬁ sauageé a7p_pée;:*§z1:g fS%::¥;.V-*i§?:;':3,_a;:>p€§1ar:: Ev?/s. Kwalitjx Cerzsiyuciiezz Er:g§f:é§é§+.g* 2865 gubméis as uadﬁr:

%w"/ Ev Cw Ciainz N03 3 rséaies ta sxifa rates for tha eX<:9;va_:§Q::, 1: £8 the specific case of the appellant than in :°:3s?g:v:3«:_§i-«._'§_i>'E7 the wark in question, the Union ef India had s'€Q_pj§§e'd4 Kxxzggligr Construction Engineers f1*o:1r;...r3%X_r3z:L1::'ifig .'{.m'1"1"}V<: and had called for separate tenders in "Elie and enly when it was realized quoted were higher mar: ;,.::;:1e t}ié'vv9.pp:s:11ant; the appeélani wag thsn tbs work.

Under {he who was stopped from quite a hang time:

took a after mare than a yea: The iézafréed éakéng inta accgunt the fact ma: vt2'f:€ s£§}2e§a:%ﬁ»-.:§?a_$Vcééémpséiéci to execaté the wezk $83316 wares queieé saréées" and '£§'}23L§___i'if wh<:; hagi séappéﬁ; {ha v2:G:é<; §::$:Z::g ~"'a:33f:'%§€& $12: 2:4n_d j'..--s:%::~mp€ﬁsd 'aha gppﬁﬁaizi: :0 C8_§"Ef'}f 31?: ihs "'-:iv'§;=*:3i:rE~: 8.§'£€?,__§:"§Q1"€ éhan 3 y€a§.., gassssﬁ 3. jug: ami ,/ nwx 25%» reaeanabie award? aﬁowing the ciaim of the appeﬂani: fer a sum cf Rs'}.5,0{}C},/'~. N0 iliegaiizy Gr ir:*eg1;§a:§f{}«f"-.._is:_ committed while passing the award by the Arbit::{5e:o':94,:"'--. ""

20. The iearned eeunsel ftzirthyef' insofar as claim No.19 is concerned, itiqis"ir1 resgrgci' of t:3f1e7 reimbursement of the sales tax Ceglected from the appellant. It is thev'eq;pe11ant that while submit£i¥1§ the not in the cantempiation 9:" '£1fﬁ1:e:::{5. ;;;§f1§'es'i«contract would be subject to were quoted by the appeilaedt -nirjat-0.'account of this liability. '§h<>ugh {he gvas bmught aiithin the ;::_1fQv£s£@;":.fsf "e§.:hea eséth effect {mm Es: fgﬁrié W85? maize? 3? Céiaﬁenge eefore this C0'::f:~_é;::gi €§'::%%'_v»~:}§";§i'E":e appeiéanz vxiae Buﬁziers' zéseseeiaééeiz e§--§::diefe§ 'é%zjhé'eE: éhe aggyeéeéaezzi is 3339 a :::e:::§i:se:s: 'E'h§ls §:*;>§-"._.&iEsH'@:€£e:% ryaeée éasréng E9§G} eugheid 'she izaiicizity :23} cf Eecfisn 5&3 sf tbs Kaynazaka Saéeg Ta}: which inchideﬁ SVSFE w::ar§~:$ éseniraci comes within the purview of 'i§'f?.tE z"5:«Cf',~~. He further submits that the Cour': beicsw has erzaéd <:@nsiider:ing Claim No.19 and 110*: ap§f).1§;i,:1'g as the said judgmemt made it Clea} :E'5_:_%:it':t1--ir;:". wouid bs effective from 1% Ap1d§"'1§39OA"'a:;d' gaé-,:s'i1::i'E':~~V:£:e liabiiity to pay sales tax :"€sp€Aet'*9iT'--wC~rLks c<:§ﬁtra_::=£ came into effsct Sltflly frsm parzicuiar clarificatian was»; izigaaie [by taking into account the a€1ihi§.'*;e3&i"'i:ir<:a;;;:1s':af:~:és that While entering into the w:'>:%*}'%:'[:s'A:;{::::%:r'L2§;%:'%;, C%f3;§'{"8;£'3f€3fS wauid not have éaker: ir:::5 '> aQ;_g:1;1: "f;f:.e»T'vE§é;§:>i§:,:}V* ':0 pay tbs Salas iaxg '"§%1€:*€f<}:*$,_ fihe ji;:r:%:gr:71Vs':2¢§:A';s.:i':3"' aaazgfd of 'ihﬁ Cauri beémv is :.*:7jéé%i'v$G1§:2§; afad '£3 :13? 'éééévd 0:: maieriai giaeéﬂ 'befefe 11:. 3,.' '§°%;é"~.E$a%n€ﬁ caaassi fer ii/as ap§eEEaﬁf: fé;§1;"E§}€3t"

$:Tii;>§né'::3"€a"2;:$j: hcéaizfa E'§'@,3E peytaéng is ihs sags sf €316 '~.3;§;§e.:>§g{3:tA Enai: ﬁzz E'€3S§€C€ sf €:><::'{1'& zafaré: €a:":*27€d {:12}; izééﬁ 26 appaiiarug 1'€3S§&1'1d€E'§'E 3 had :13: paid '$316 amamzis as per thé bi}? anii the rateg were §"€§.LiC€d arbitrarily cgntetzded aha: in rapes: sf hallow MS sessienS_.-é;.nj<f3i . CC with 2G mm aggregate in string 1;:éif:'gi .é;oViir:§_es while the rates quoted were at Rs51231.35 per cubic: meter, '<,?§f€i"f3Vv i°§'fjA1':'».£1v°C€(i "lie Rs,4~,'?'4-- per kg. and Rs.9,0§3;'~ the reduction in the final giving any reasons. Th6 taking ﬁnite consideration has allowed the saaicl eijgiiiag 'U1'1i{;1'1 0f India to pay a 3111:: ef The Court beiova has §:isai1<:>we§:_§ _v {his4"'€1;4;i::1V}:3z1Ai:; 5'51 'i:%":€ greund {hat ihe saréisr :.;f,§é~§;'v:f11€:':vii{m.::2f§e'~-?Qj.; '{h%€%"":'€7$g::{;:':de:*1: 3%,} are @1335; advance §aj{2::a%:;j:€s-- *ﬁ}:a":_}.*;%:€ E'€S'§:rGifE§<f%E'E'{ E'x?:;:n§ has Eakﬁliiz énie "'Vi£'{3C€3L§ﬁ'§.4"'E§;'E€.~:S?i§§ airsaugzia ;§aé§ *:ow3,:d;s §ar: yaj,-':*:1e'::€ am} " '*':,'?i:;°§§'.f=%S:.§:?A8.j~a{§Z :§':€:,. bgéazzate azzmum 83 {E123 ?&'E€8 agieeé, is 'K' *'§:,vv>""

2?' 22 Thé Eearneé Ceunge} £131' the appellant 'cﬁ$V0 Submits that disaﬂowting the claim §\E:>s.1E3 19 a&:3.<i_i ' without any basis and the samé is not in 3;CCQ:'C'ié1I1CéV'Vv'i{hVb law.

239 Under Section 34 :.J£ j:1<;_e :9'95_ A¢t,, fi§;é""'T1"ia1 Court can set aside the arbitra} 1} for the reasons r:1'€%_1*1<:i{;.r1.?::<;1 i_n*.V.':,"1s,=:'ctiQr; 34 2} for "i':':__ 2} and .28 {ma}, **** '

3) for "::h'é._réas§f>i§.é~.s*:aﬁ_é'd in Section 34 {2)(b}(ii}; if {he a.rbi_'{:€a} é:wa;e:i és E_:2 ":E<3r:ﬂi£: with éfhﬁ pasibﬁc :,§:2{5§'§':§«' @f°Ir,:r<§ia';f£hai§;;§"'iG say; if E: 5:3 §ZG:'E3{.§'83f}/" :2:

a}fIi:L:j1€i;::éLi€:j1_3::<?;i of Ezzséiafs Eiazar, 9:" '$3 ihe éaésreaﬁs "~':3f Eiaéiéiéjg Q? 3;} _§:;i.:~.;'::Z€5 Q3: (if; if 2?; is §a:€§::§§: éﬁegai 5 " 4; fa? fh'€ reascszag 3:311:33' $3: §€C:'%;iQI} E352 azzé E665 24; Any arbitration eféause pmvided that inihe even: ef dispute regarding the war}: done after in the Original speeificatien or drawirigs iriitia1_1j»*"{naei'e by an engineer, then the decision 0f the er;g'1'nVe'é:~*:jr 'i n.__ch.1;e.f is__ finai.

25. The Tria}. CVO--L1zI"§ the Arbitrate: has erzeé. ameunt of Rs.15,{}GG;'» as '§';r1e--;ree':-is :53 When Ehe respondent had"é;'§;:.e»e'q*"1V:;§: awrk by placing the tender er: 113553 its execute that wesrk as per :he1:erénsV ef: If he had exeeuied the werk ae gee: ':E:é§e" :%ea<i:::, "¥:Ef:e':::? ii eanne: be 331$ Ehaé any ='%<:>5s's--.Wa!'e. eaie;§e:?.:e %1é:1*i;'"'E'he ebservaiier: 'that; ae {he work:

wa§s..."e.<§; ei.:3e Eatezg 31': §;€§8{§'€§ {he =$§:{'IE§E,€E§€}E§ :5}? " 'L;".9'O3;":§<;, :29: ~3._e€;e§2:ab}e as it is me: @§f'€C'{i_'§f £{}E}ffi$<::?:€d is ~ if'?i:E2..;eV""»'5;£::*i:9 ﬁeézee; éhe Trig}. €323: came ta she eeneizgsien "2--1,«»~""' 29 ihet {he Eeazned Arbitfaier has €I'Z"'<i'{§ in awarding this aeceuni; sf Rs.E5,G®Qj/, 26; 03:1 carefui perusal of ihe jucigr;;_e'f':1:V. T' Court below, 'WE are of the View thatéxkfhefi J has agreed to execute the workgby p1é.=::ii1'g the.-§ef1'der ¥:}riV is: July 1990, the Ciaim NQJ1 élas to be done for the eexxieet be accepted. This; is part Wcnrk.

incidental  of the
work    and there is

no force irigthefghe' learned. counsel far the appellant,

27.. fa: e§$""*;he eieim. N939 ﬁe eeneernedg the ebee.r§';;;é§eA:::"e§M:E€ee._'ff:,7ia§ Ceurt is the; ehe Wei: peiiiéen wee "":§i§e& eh».:~:§i1en.g§r;g..--§:%}e impeeiéiezs ea?' eaéee :33 er: {he \2<;e:rE<:s " 7i.:;':a3:2'é;:.ie.C: :%:%;VE:' effeeé: from 18? ﬁpzﬁé $86 and aeceréieg Ea:

aspect ﬁe C€>:'§{3€'1"1'1€d? in em: view; 13 Sauna and gzreper said does :10: said fer interference.

28a The Trial Cent: has also ebserveey that the Arbitrator has awarded extra. items less paid. The 1€a1f]i€?i Af'E>ji:'ater }':--é15; :>j>i:dede that whatever the payments Vvefee;;ty1a:1e aﬁggeliant were only advance pa}*H1ef1ts it is adjusted in the finalwbiﬂu 5:11am: in mu sanctioning the three years?

without is not proper;

There is:::3e__-prvGpe§_":7ea$_E5:1__ my awarding a sum of RS.3§;§QG;'l~ when :'iee"":§g;=;}Ve'EEVa'nt has iaken izzio aeeoun':

Eéie §}a}fTﬁ§.€ﬁ§:F§ ma<ie.._§:r: {he peg": p&j§JI}":€§E_§ 'eiéés 532$ paid {he '§§ﬁa:iee_va:::g:,;:*;_f:"'~:%:t the agreed féiié. ifhie aegect was me: eezzeisieiieei V {he Eeejneé gﬁgefeéiraiar emd :fi:"::1a§§7 E: amezgnié z ﬁat; %§e%.,1'e};e §,>e;§,:§;":er$; ;.m., : 35:33 a.§::<3:;:ni$ is 5&.i:§':i$'§i'§;€§':E ef the efaaiﬁs tézaét hag eﬁreaaﬁjg eeeﬁ ggaéd aﬁé we;

§:';%'J 131$ "§réai Cguri: zigﬁztijg yejscteé this slain} alga; ané :29 graund is made 921%: 1:9 énterfsre wiéh {E3313 claim.

29. The Union sf India has filed the appeéi v=;:J::§:e&T' Section 37(1) of the Arbitration aglnrizg C:;r:§>::1i2*{j:i«§.§1-.A:gfi'ﬁ;__ 3996. Normally, an appeai dogs: :10': 1«ieA_'$'gain$Tf'v--éé;¢h«' afj§(«:.17 €V€1":x/' order of the Trial Caurt. #1113;

under Sections 3'?/"(1}(a) 9f the Ac: But; in ths in.stantvAc.a:§;g.V hag raised several pointss every finding recorded b3fV'_V'£€}3§' 1% based on Eega} avidenae €;'--V)<;I{3<Z*.f:',?--'A£A -- 1% and 31 0:16 cf the aanteatians i;}:Vf¢¥ apgearéng far {he 153::-E<:>:n ﬁijéﬁgdéa §S :§f:aJ; §a:r:$e::i giver: ?sjx7 {he E><§::::%:§:2;e E%1<:gir:e61f ':3 ;et:<'§;.Q§-E:_a gzacséure unéez' 'aha yzew A€t Eggs _ '$662': ';%azi%;Er:§.:"¥a;x:?::.. ciiezsfﬁi} ihsfs wag a. p§$3';i'ive Sétaiémeaé maids 3:355 :§:%§;».&vE:X€si:'u:§:ve Eézlgiféﬁﬁf zhgx: :1/1:33;' WEE gariiicﬁats ..FzEiﬂ§T"'«--g:'§:s%:€a§i<;n §Ti"Géf;$$§}:f§§S maﬁa? the }fE€"¥%' éacié W K, {W Subseeiuenzéyﬁ gaming the judge*1e::: of the Herﬁble Ape}:

Courg they have mentierzeﬁ that the eld. procedure be fellowed, In this regard, 2": is the <:<:::1r1te:'1':_:':§r:

learned eounsek fer the appellant that fahe eer1'éeﬁt'A:§Vi»ve11Vhf; the Executive Engineer was withdr'a.wr:'§_'Ti:1 ﬂzisz' could be seen that, the dated 15"": December 199€:3...e0r1;;12--vTxji'§cétte;i e1ﬁiiater::11§* his censent for deahing with Act; The appellant wrote 'aéjezier 1997?

unilaterally, given earlier on :23"

December Beeember 3996 reads *:hus: "_ "

with i{*e§e':'e'eee €33 e:'eeae'e {he feﬁewieg :8 'V " eubieiiéerif"

E~'?aL:-'er 2;'{§fA."_5??::'e fee: Ezae eireeéjz been brezzghi in emf"-. offéee e:fe:: Eeiier .?§§€:}k E85? deteé; E3"? Eeeyereeeeg E996. Benee eeéizéeg 'ie be aﬁéeei 3* 34 Para 3: The Respgndent has attended the"

Arbitraiian hearing and the site insp€c:§.Q:§" between 13*? November; 1996 1:0 15*?" E\§overr:.?§:;'<31:,.« V 1996 subject to extension sf tim:é..ra1;ifieri"b§}'€}?;<3 ' ceurt as already brought out i1'::=.A:thi::;A§:§f*fi'{:£s. ietter No.1857' dated 13%: N«oy*€m§5eA:_"%'V3_99657.,. " Para 4: As regards ArbitratV§<-3-11 an::i--~..Con<:i1ia.tiQzi 1996 is concerned thé':7<i:b_§f re~§L:,>'1f©'ﬁ*:ivC¢A'S»ec 85 of the said Qrdinaﬁce. ' Para 5: Re}:$é§;1--. 1 The ﬁr1.c::i,VVVVC»vé3nve:1ti0n) Act, 1937 Qf Am, 1940 (10 95 E94?Ci'}__a:';;d "Awards [Recagnitiarz ar1dV_E;:nfe:f€;~<=é:§:<:>.T::--} .?:;;:i;"'":1§6E, {45 9:" E961) am " V. A %1€f_1'?§T3}«f __:t~:§€a§€éJ; « ..... .. e §€{>.:}Asi:§'1::::a::tEi:2g sash ragga};

{3} .§:°:33;*i§:é:;§;*"' 925 $16 saiﬁi €:r":a£f;m::2i:%:s ghaéi a§§:>E}; 3&2 tféﬁigting ':3 arbéirai preceedings E?'J§§Ch £:G::;r:2;€"::.$e«:§ i:n€f<;:"€ $33 {}§2:3g§:2.anc€ Cams? é::*:{::

ff'{3:'{:.s: 11312633 szhemrése agfﬁed by the §a:"1:§$S 'mi:

§::£°@::gh%f_ ﬁfééflaﬂééf E233 :39": zepﬁaiﬁé this Qrciinanccs shali apply in reiatien to arbitrai prcsceedings which cammenced :31': 91" after' this 1 " Ordinance csmes 111:0 ferces all ruies made am_<f§i' . ' notifications published" under the enactments shall, to the eXt6:r1t_1;::>_whi::'h;"t}§}€§y ° are not repugnant to this Ordin9¢3,:1<:cs>§. Tb}: d-f~=_5c§:1ié-d' " respectively to have; been made Qf--issued 11}}§.:1ér ' this Ordinancé.

As brought oug _(:)r(i;j1j';9{f:£jve :"'%1:;as not repealed the A1fb_itra:iQn_ Ac::, <3i{l+G"'f9'f ﬁ§%hfch the Arbitral pFQC€'&?'f§,:i.11gS:3._hgaiéf before Ordinance' ~..,.f.Qi' <_:é'._: ,.However as ArbitI'Ja_fI'.QI'_1A 'p%:€)&£€7;§§§ii1E_5§VS.::éI"é'--E11{:'J»:)S'£ over, hence to amvid :y: _"'fi.r;a1i.sation of case} W6 féﬁi e:aSe_ ::1jay' per Arbiiiratim/1 and Cem?;i§ia¥:iei: om%;::{a:;¢e*$%%'»% S'.

3§:§; '£513 £63616, 3;': is cieazky m5m*:ier:€§. Ehaé? 33 i :56 V5¥':;_"m§ra:'§'3m .--,_'é'§'-~'E~{fé3 59:' iarhiaéz the arbétrgi gmsesdémgs 323.5 <'}1*;:1%::F:§r,:e{:*:'" 'sefars ﬁiﬁ erdirgaizce same mm fCi§'C€* 3% However? 5.3 fzhe arbiéfaztéeiz geeeeedéngs are amass: 9:: the II' verge of eompletilen and EC: aveid deftaj; in finalizaéieeeni the case, the Case may be dealt: as per Coneﬂiatien Ordinance! Pram this§_..i..1E_is Cieei1*" respondent gave a mnsen: is follow"'éhe1 :):*i)eeLi1,i1"e' aeg the new Act! However?

Engineer has written a iefiter "2.2n<i.'MarehvvE1997, inviting the attention ef decision Qf State of eunjab i:j: %%iR E985 SC

920.

31. :<._'»Vhen §:-:;2eVe»":he*a§}i*q:3_e3le%e:1t has giver; cansen: for foB,ew:ing :he"V-eépmcedéﬁe .-aéizﬁéei ihe zzew ﬁe? Wit}: {Lil éezzewieeﬁégeveef aéi %}:eV&eé:ee%,':r:1e:a_::eee, the seéeé aeziheriiy is p€r'ee§1:'é;.ea .f:°£.>:"i%"~:>%;§:E1d:aex»=i::g {he game' fheeeferee the eemteaéien é>'E5é:§f:eT:=§7e§::1e& eeizérzseé 53;" {he Einéez: ef Emcifée "iégat? §e§e<.ei:§;gV 'ifze §>:*eeeeZ':2re 'a2::':&;e:* 'size EE€:"E=;=" ﬁe: me:

pl:":::§e}}:»e§'Ta:f;:§ has zize feyee ezzé canes: be 8.f$€:§i:Q§€{i £3' ,,~ "m.»»~»"' 3"?'

32. The': next asp-en:: {hat £3 carzvassed bf; ;éi":--";€ Eearned csunseé for {E16 appéﬂant in MFA that} the intereat awarded by the Arbitrator Le. aé; T' annum is on the higher side; E1: is #3:: b é ':::€3:*1tio11r:n>:1.VVt11 ath under the repealed Act of Arbit:*atio:1«'A?¢é-- <31" £he:f:*é"~ V was no prevision CO'v'E3I"i1'1g the g%a.ir:: sf i':';$ieurc':ét the Arbitrator. insofar as the 1"J,§'f VU Act £3 VC :s--§_1_c¢fAi"nAed§ granting of interest is far the f0H;C}'v'x/ifig p€:fia(i::,_ :_ L principal 3.i°e1§i;°e_r1::vé'-- pé~;*ibd"_"

2. period bf pé:1de"i1c}f"'o3f«afbirraijon prcceedingsg '3, p€Iri'0'6; 'dlaf,-s": :§f""a;iX£ard :9 {he dais Qf V d€'G.j€€€: cf.::de'F:i'«3§:;:'t:-T._""' 4, psrieé, fmI:r3f--:Ei1€ zisfis sf dasrse sf 895?: to {he rzzaéizatfaga aiféhe 'ameunt.

' *£:é'*;§%:'s é:i2_S:a::?: sass} when tbs apgﬁaiéazzé Uzxisn, §::é;3 E:8.$ f<::é:;::s.£e:1*{e§ ':3 pértécépaié in the zirbéifatigzz _._ '--«.7;'::"::2<;eec*Ei:*1g%*;.:::::E6: 1:326 :r:ev; and :9 feﬁmég "Size fa;/' 38 p§<:}c€ﬁ:3;r€ 35.; pa £1616 n€<2~;.«' Act, ii: Qzgghi ':9 adap: éhe precedure as per tha new 53:2: 0313,»: Such being the Eearned caunsei far the appeﬂant C<3HiZ€3F1diE'l§. ;§hé;%€ €§1€'."-*. interest cannot bf) awarded, hag __z:;:@.__for<:'€3. 'V"'E*i§::"rf:a.l1y interest would be awarded at £116 7 _i*2:ite reasonabie on the whole: or :2-3.I'ljy;>:g-'I::V&I'§[f7.§_ sf i:E;e__ whale Q1' any part 0f the perﬁod §;€::%}ié:ef:"'?he .v:'1ia':s;v-.onv:§1arhich the cause of actierg. arose ,_:i::€a. zhe award is made' The inigréigf:VV§%r'§4'i£%*ator at 18% pa' is an the viz: Executive Ezigineerj, Enviranment <32:

Foreszsf 'D' V"':ZJfr:'1g,V Civﬁ Consirucéiem Umlz} Eﬁ5r'i§é_I%iﬁ"iiéﬂt ané §'a§ss::s anﬁ l'a./ifs. E{'{:%€21Ei*:j;'-vC'§:2.s:.w?:m1<;'i§Q:: 'ﬁiﬁgéneersa Amesrgei; E-§j;§€:'abad 32::

Ei:E,§<'e._§{§7fféé;28:'Q_2;'§*;§{;i§?3(AA)§ '$313 Gear: hag awagﬁeé ﬁzéeregé §% §'r':Eia 'f§?Eiv<3:%}':;*f$:'$, in azésr ta maénzaéa $@3::$é$*{€::<:}; if} ~ (jg;-gag 'awaérﬁi G§__ :€::1:er€s: agé, 3350 $§::{:€ ézha €€:f'E§€§" §$E'"ia§E":$ 1:9 mww"

CA} xQ the sarrié N::>i:'fé<:a:ir3r:, in 02,12' iiiexag énzerssz {hat £3 awarﬂeﬁ at 18% pet, has :0 be rsduced to 9% p.a.,

34. At this siage, ieamed csunsel far submits that liberty may' be: g1"antécl tcﬁ4:§<3é:*«_app*3.}Ia;3i{;"fQ_ urge their claim for refund 0:" the saiegfax pé;ic.:i* !:h.c:j;f* % the sale tax Department. iu:iV.VA_V'C;a,se méiise an applicaiion before the: 'CO'T.1f}.f)Et€1.a1f S:a~§1e._sv.'f&LX Authority, for refund cf the $9.163 taX',,_@,i11.Q1iI1i:,..» t'E:eV"=.<§a--:i1e shaﬁ be dispesed cf in acéaréiiargcg :?$.'1it§]f1V1E1V{ 35, '~!:Ei<--? a.bé§ve éis<:ussi0::, we pa3s '£316 foﬂawiﬁgg: "

.'j~?1';Ez§'o.;%.'«<E.&E/.{)':'E't:;§{.§::§3jg;g{:3{}$ is ::sze::;;v dagsmissaagz 525:,§+*ag,§<;%;8i2':?';§»;2:;%éss aiiowed paﬁ. I 1-":w~""

4S "§i*1€ intsregt ef E892; gag awarded as $26 award amsum: is rsdussd 'Z0 9% per annzlm, The res': ef the award passed by Arbitrator and the learned Judge tlﬁé accepted.

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Karnataka High Court

M/S Kwality Construction Engineers vs Union Of India on 13 October, 2011

Bench: N.K.Patil, C.R.Kumaraswamy