Karnataka High Court
Gulbarga Electricity Supply Company vs M/S Spml Infra Ltd on 19 February, 2016
Bench: N.K.Patil, Rathnakala
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 19TH DAY OF FEBRUARY, 2016
: PRESENT :
THE HON'BLE MR. JUSTICE N.K. PATIL
AND
THE HON'BLE MRS. JUSTICE RATHNAKALA
M.F.A.No.4008 OF 2015 (AA)
C/w. M.F.A.No.4009 OF 2015 (AA),
M.F.A.No.4010 OF 2015 (AA), M.F.A.No.4011 OF 2015 (AA),
M.F.A.No.4012 OF 2015 (AA) AND
M.F.A.No.4013 OF 2015 (AA)
M.F.A.No.4008/2015
Between:
1. Gulbarga Electricity Supply Company,
A company incorporated under the
Provisions of the Companies Act, 1956 and
Having its registered
Office at No.25/1, Residency Road,
Bangalore - 560 052.
Represented herein by its
Chief Engineer.
2. The Director (Technical),
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
3. Chief Engineer (Elecy).
Corporate Planning,
Gulbarga Electricity Supply Company,
Corporate Office, Station Road,
Gulbarga - 585 102.
2
4. The Superintending Engineer (EI),
Gulbarga Electricity Supply Company,
O & M Circle, Bidar - 585 401.
5. Executive Engineer (EI)
C & M Division, Yadgir,
Gulbarga Electricity Supply Company,
Bidar - 585 401.
... Appellants
(By Shri. S.G. Prashanth Murthy, for
Shri. S.Sriranga, for M/s. Just Law)
And:
1. M/s. SPML Infra Ltd.,
A Public Limited Company
Incorporated under the provisions
Of the Companies Act, 1956 and
Having its registered office at
No.F-27/12, Okhla Industrial Area,
Phase - II, New Delhi - 110 026
And
Having its Regional office at
MfarSilverline Tech Park,
Plot No.180, EPIP II Phase, 2nd Floor,
Whitefield, Bangalore - 560 066.
Represented by
Mr. P.Periasami - Advisor (Legal)
2. Mr.Justice Shivraj.V.Patil (Retd)
Arbitrator,
No.254, 'Sparsh', 18th Cross,
Sadashivanagar, Bangalore.
3. Justice K.Shivashankar Bhat,
Arbitrator,
Former Judge, High Court of Karnataka,
No.401/29, 12th Main,
RMV Extension, Sadashivanagar,
Bangalore-560 080.
3
4. Capt. S.Raja Rao,
Arbitrator,
Ex-Secretary,
Govt. of Karnataka,
No.279, I B Cross, 4th Block,
Basaveshwarnagar,
Bangalore - 560 079.
... Respondents
(By Shri. L.M.Chidanandayya, Advocate for R1)
******
This MFA is filed under Section 37 1(b) of the
Arbitration and Conciliation Act, against the order dated
02-02-2015 passed on A.S.No.3/2013 on the file of the
Principal District Judge, Bangalore Rural District,
Bangalore, dismissing the application filed under Section 34
of the Arbitration and Conciliation Act.
M.F.A.No.4009/2015
Between:
1. Gulbarga Electricity Supply Company,
A company incorporated under the
Provisions of the Companies Act, 1956 and
Having its registered
Office at No.25/1, Residency Road,
Bangalore - 560 052.
Represented herein by its
Chief Engineer.
2. The Director (Technical),
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
3. Chief Engineer (Elecy).
Corporate Planning,
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
4
Gulbarga - 585 102.
4. The Superintending Engineer (EI),
Gulbarga Electricity Supply Company,
O & M Circle,
Bidar - 585 401.
5. Executive Engineer (EI)
C & M Division, Yadgir,
Gulbarga Electricity Supply Company,
Bidar - 585 401.
... Appellants
(By Shri. S.G.Prashanth Murthy, for M/s. Just Law)
And:
1. M/s. SPML Infra Ltd.,
A Public Limited Company
Incorporated under the provisions
Of the Companies Act, 1956 and
Having its registered office at
No.F-27/12, Okhla Industrial Area,
Phase - II, New Delhi - 110 026
And
Having its regional office at
MfarSilverline Tech Park,
Plot No.180, EPIP II Phase, 2nd Floor,
Whitefield,
Bangalore - 560 066.
Represented by
Mr.P.Periasami - Advisor (Legal)
2. Mr.Justice Shivraj.V.Patil (Retd)
Arbitrator,
No.254, 'Sparsh', 18th Cross,
Sadashivanagar,
Bangalore.
3. Justice K.Shivashankar Bhat,
Arbitrator,
Former Judge,
High Court of Karnataka,
5
No.401/29, 12th Main,
RMV Extension,
Sadashivanagar,
Bangalore.
4. Capt.S.Raja Rao,
Arbitrator,
Ex-Secretary,
Govt. of Karnataka,
No.279, I B Cross, 4th Block,
Basaveshwarnagar,
Bangalore - 560 079.
... Respondents
(By Shri. L.M.Chidanandayya, Advocate for R1)
******
This MFA is filed under Section 37 1(b) of the
Arbitration and Conciliation Act, against the order dated
02-02-2015 passed on A.S.No.4/2013 on the file of the
Principal District Judge, Bangalore Rural District,
Bangalore, dismissing the application filed under Section 34
of the Arbitration and Conciliation Act.
M.F.A.No.4010/2015
Between:
1. Gulbarga Electricity Supply Company,
A company incorporated under the
Provisions of the Companies Act, 1956 and
Having its registered
Office at No.25/1, Residency Road,
Bangalore - 560 052.
Represented herein by its
Chief Engineer.
2. The Director (Technical),
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
6
3. Chief Engineer (Elecy).
Corporate Planning,
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
4. The Superintending Engineer (EI),
Gulbarga Electricity Supply Company,
O & M Circle,
Bidar - 585 401.
5. Executive Engineer (EI)
C & M Division, Yadgir,
Gulbarga Electricity Supply Company,
Bidar - 585 401.
... Appellants
(By Shri. S.G.Prashanth Murthy, for M/s. Just Law)
And:
1. M/s. SPML Infra Ltd.,
A Public Limited Company
Incorporated under the provisions
Of the companies Act, 1956 and
Having its registered office at
No.F-27/12, Okhla Industrial Area,
Phase - II, New Delhi - 110 026
And
Having its regional office at
MfarSilverline Tech Park,
Plot No.180, EPIP II Phase, 2nd Floor,
Whitefield,
Bangalore - 560 066.
Represented by
Mr.P.Periasami - Advisor (Legal)
2. Mr.Justice Shivraj.V.Patil (Retd)
Arbitrator,
No.254, 'Sparsh', 18th Cross,
Sadashivanagar,
Bangalore.
7
3. Justice K.Shivashankar Bhat,
Arbitrator,
Former Judge,
High Court of Karnataka,
No.401/29, 12th Main,
RMV Extension,
Sadashivanagar,
Bangalore.
4. Capt.S.Raja Rao,
Arbitrator,
Ex-Secretary,
Govt. of Karnataka,
No.279, I B Cross, 4th Block,
Basaveshwarnagar,
Bangalore - 560 079.
... Respondents
(By Shri. L.M.Chidanandayya, Advocate for R1)
******
This MFA is filed under Section 37 1(b) of the
Arbitration and Conciliation Act, against the order dated
02-02-2015 passed on A.S.No.5/2013 on the file of the
Principal District Judge, Bangalore Rural District,
Bangalore, dismissing the application filed under Section 34
of the Arbitration and Conciliation Act.
M.F.A.No.4011/2015
Between:
1. Gulbarga Electricity Supply Company,
A company incorporated under the
Provisions of the Companies Act, 1956 and
Having its registered
Office at No.25/1, Residency Road,
Bangalore - 560 052.
Represented herein by its
Chief Engineer.
8
2. The Director (Technical),
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
3. Chief Engineer (Elecy).
Corporate Planning,
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
4. The Superintending Engineer (EI),
Gulbarga Electricity Supply Company,
O & M Circle,
Bidar - 585 401.
5. Executive Engineer (EI)
C & M Division, Yadgir,
Gulbarga Electricity Supply Company,
Bidar - 585 401.
... Appellants
(By Shri. S.G.Prashanth Murthy, for M/s. Just Law)
And:
1. M/s. SPML Infra Ltd.,
A Public Limited Company
Incorporated under the provisions
Of the companies Act, 1956 and
Having its registered office at
No.F-27/12, Okhla Industrial Area,
Phase - II, New Delhi - 110 026
And
Having its regional office at
MfarSilverline Tech Park,
Plot No.180, EPIP II Phase, 2nd Floor,
Whitefield,
Bangalore - 560 066.
Represented by
Mr.P.Periasami - Advisor (Legal)
9
2. Mr.Justice Shivraj.V.Patil (Retd)
Arbitrator,
No.254, 'Sparsh', 18th Cross,
Sadashivanagar,
Bangalore.
3. Justice K.Shivashankar Bhat,
Arbitrator,
Former Judge,
High Court of Karnataka,
No.401/29, 12th Main,
RMV Extension,
Sadashivanagar,
Bangalore.
4. Capt.S.Raja Rao,
Arbitrator,
Ex-Secretary,
Govt. of Karnataka,
No.279, I B Cross, 4th Block,
Basaveshwarnagar,
Bangalore - 560 079.
... Respondents
(By Shri. L.M.Chidanandayya, Advocate for R1)
******
This MFA is filed under Section 37 1(b) of the
Arbitration and Conciliation Act, against the order dated
02-02-2015 passed on A.S.No.6/2013 on the file of the
Principal District Judge, Bangalore Rural District,
Bangalore, dismissing the application filed under Section 34
of the Arbitration and Conciliation Act, 1996.
M.F.A.No.4012/2015
Between:
1. Gulbarga Electricity Supply Company,
A company incorporated under the
Provisions of the Companies Act, 1956 and
Having its registered
10
Office at No.25/1, Residency Road,
Bangalore - 560 052.
Represented herein by its
Chief Engineer.
2. The Director (Technical),
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
3. Chief Engineer (Elecy).
Corporate Planning,
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
4. The Superintending Engineer (EI),
Gulbarga Electricity Supply Company,
O & M Circle,
Bidar - 585 401.
5. Executive Engineer (EI)
C & M Division, Yadgir,
Gulbarga Electricity Supply Company,
Bidar - 585 401.
... Appellants
(By Shri.S.G.Prashanth Murthy, for
Shri.S.Sriranga, for M/s. Just Law)
And:
1. M/s. SPML Infra Ltd.,
A public limited company
Incorporated under the provisions
Of the companies Act, 1956 and
Having its registered office at
No.F-27/12, Okhla Industrial Area,
Phase - II, New Delhi - 110 026
11
And
Having its regional office at
MfarSilverline Tech Park,
Plot No.180, EPIP II Phase, 2nd Floor,
Whitefield,
Bangalore - 560 066.
Represented by
Mr.P.Periasami - Advisor (Legal)
2. Mr.Justice Shivraj.V.Patil (Retd)
Arbitrator,
No.254, 'Sparsh', 18th Cross,
Sadashivanagar,
Bangalore.
3. Justice K.Shivashankar Bhat,
Arbitrator,
Former Judge,
High Court of Karnataka,
No.401/29, 12th Main,
RMV Extension,
Sadashivanagar,
Bangalore.
4. Capt.S.Raja Rao,
Arbitrator,
Ex-Secretary,
Govt. of Karnataka,
No.279, I B Cross, 4th Block,
Basaveshwarnagar,
Bangalore - 560 079.
... Respondents
(By Shri. L.M.Chidanandayya, Advocate for R1)
******
This MFA is filed under Section 37 1(b) of the
Arbitration and Conciliation Act, against the order dated
02-02-2015 passed on A.S.No.7/2013 on the file of the
Principal District Judge, Bangalore Rural District,
Bangalore, dismissing the application filed under Section 34
of the Arbitration and Conciliation Act, 1996.
12
M.F.A.No.4013/2015
Between:
1. Gulbarga Electricity Supply Company,
A company incorporated under the
Provisions of the Companies Act, 1956 and
Having its registered
Office at No.25/1, Residency Road,
Bangalore - 560 052.
Represented herein by its
Chief Engineer.
2. The Director (Technical),
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
3. Chief Engineer (Elecy).
Corporate Planning,
Gulbarga Electricity Supply Company,
Corporate Office,
Station Road,
Gulbarga - 585 102.
4. The Superintending Engineer (EI),
Gulbarga Electricity Supply Company,
O & M Circle,
Bidar - 585 401.
5. Executive Engineer (EI)
C & M Division, Yadgir,
Gulbarga Electricity Supply Company,
Bidar - 585 401.
... Appellants
(By Shri. S.G.Prashanth Murthy, for
Shri. S.Sriranga for M/s. Just Law)
13
And:
1. M/s. SPML Infra Ltd.,
A Public Limited Company
Incorporated under the provisions
Of the companies Act, 1956 and
Having its registered office at
No.F-27/12, Okhla Industrial Area,
Phase - II, New Delhi - 110 026
And
Having its regional office at
MfarSilverline Tech Park,
Plot No.180, EPIP II Phase, 2nd Floor,
Whitefield,
Bangalore - 560 066.
Represented by
Mr.P.Periasami - Advisor (Legal)
2. Mr.Justice Shivraj.V.Patil (Retd)
Arbitrator,
No.254, 'Sparsh', 18th Cross,
Sadashivanagar, Bangalore.
3. Justice K.Shivashankar Bhat,
Arbitrator,
Former Judge,
High Court of Karnataka,
No.401/29, 12th Main,
RMV Extension, Sadashivanagar,
Bangalore.
4. Capt.S.Raja Rao,
Arbitrator,
Ex-Secretary,
Govt. of Karnataka,
No.279, I B Cross, 4th Block,
Basaveshwarnagar,
Bangalore - 560 079.
... Respondents
(By Shri. L.M.Chidanandayya, Advocate for R1)
******
14
This MFA is filed under Section 37 1(b) of the
Arbitration and Conciliation Act, against the order dated
02-02-2015 passed on A.S.No.8/2013 on the file of the
Principal District Judge, Bangalore Rural District,
Bangalore, dismissing the application filed under Section 34
of the Arbitration and Conciliation Act, 1996.
These MFAs. coming on for Admission, this day,
N.K. Patil J., delivered the following:
JUDGMENT
These appeals arise out of the common Order dated 2nd February 2015, passed in A.S. No.3/2013, A.S.No.4/2013, A.S.No.5/2013, A.S.No.6/2013, A.S.No.7/2013 & 8/2013 respectively, by the Principal District Judge, Bangalore Rural District, Bangalore.
2. We have heard the learned counsel appearing for appellants and learned counsel appearing for respondent No.1.
3. Learned counsel appearing for appellant and learned counsel appearing for respondent No.1, during the course of submission, have filed a joint memo dated 19th February 2016 and submitted that the instant appeals may be disposed of as per the terms and conditions of the said Joint Memo.
154. The submission of the learned counsel appearing for both the parties, as stated supra, is placed on record.
5. The joint memo dated 19th February 2016 duly signed by the appellant No.1, respondent No.1 and attested by the learned counsel appearing for the respective parties is placed on record. The terms and conditions of the aforesaid joint memo read thus:
"The Appellant and the Respondent respectfully submit as under:
1. The present Appeals have been filed by the Appellant assailing the order dated 2.2.2015 passed in A.S. Nos.3-8/2013 which was filed by the Appellant herein and came to be dismissed.
2. The Respondent herein had initiated arbitration proceeding pertaining to six contracts for the work of undertaking reconductoring of existing power lines in six divisions in Karnataka namely Bellary Division, Bidar Division, Gulbarga-II Division, Yadgir Division, Raichur Division 16 and Hospet Division. The Arbitral Tribunal was pleased to take up all the six claims together and pass a common award dated 24.2.2013 partly allowing the claims in the following Terms;
A. Award in Arbitration Case No.1 In so far as award pertaining to Bellary Division, the Tribunal held that the Respondent herein is entitled to extension of time for completion of project work up to 24.12.2008 without levying liquidated damages. The tribunal has further directed the Respondent to refund liquidated damages of Rs.27,01,000/- recovered form RA Bills, pay simple interest at 15% on the amounts deducted as liquidated damages from its RA bills from the date of deduction until date of award, Pay to the Respondent Rs.22,17,332/- towards escalation, pay interest at the rate of 15% for delay in releasing RA bills from the due dates and pay Rs.1,98,938/- towards compensation for extension of Bank Guarantee beyond period of completion of project. The Respondent has also been directed to pay future interest at 17 the rate prescribed under Section 31(7) (b) of the Arbitration and Conciliation Act 1996. All other claims of the Respondent and counter claims of the Appellants have been rejected. The Respondents have been directed to bear cost of arbitration and the Claimant has been directed to pay stamp duty on the award.
B. Award in Arbitration Case No.2 In so far as award pertaining to Bidar Division, the Tribunal held that the Respondent herein is entitled to extension of time for completion of project work up to 30.08.2009 without levying liquidated damages. The tribunal has further directed the Respondent to refund liquidated damages of Rs.3,13,14,516/- recovered from RA bills, pay simple interest at 15% on the amounts deducted as liquidated damages from its RA bills from the date of deduction until date of award, Pay to the Respondent Rs.3,00,31,434/- towards escalation, pay interest at the rate of 15% for delay in releasing RA bills from the due dates and pay Rs.26,76,972/- towards compensation 18 for extension of Bank Guarantee beyond period of completion of project. The Respondent has also been directed to pay future interest at the rate prescribed under Section 31(7) (b) of the Arbitration and Conciliation Act 1996. The Appellant has been directed to conduct joint inspection within six weeks from the date of the award and make payment at lump sum rates if any per kilometer stretch of feeder etc., if they are found to be used in terms of the contract. All other claims of the Respondent and counter claims of the Appellants have been rejected. The Respondents have been directed to bear cost of arbitration and the claimant has been directed to pay stamp duty on the award.
C. Award in Arbitration Case No.3 In so far as award pertaining to Gulbarga II Division, the Tribunal held that the Respondent herein is entitled to extension of time till date of award without levying liquidated damages. The tribunal has further directed the Respondent to refund liquidated 19 damages of Rs.3,32,39,053/- recovered from RA bills, pay simple interest at 15% on the amounts deducted as liquidated damages from its RA bills from the date of deduction until date of award, Pay to the Respondent Rs.1,83,33,908/- towards escalation, pay interest at the rate of 15% for delay in releasing RA bills from the due dates and pay Rs.34,40,505/- towards compensation for extension of Bank Guarantee beyond period of completion of project. The Respondent has also been directed to pay future interest at the rate prescribed under Section 31(7) (b) of the Arbitration and Conciliation Act 1996. The Appellant has been directed to conduct joint inspection within six weeks from the date of the award and make payment at lump sum rates if any per kilometer stretch of feeder etc, if they are found to be used in terms of the contract. All other claims of the Respondent and counter claims of the appellants have been rejected. The Respondents have been directed to bear cost of arbitration and the claimant has been directed to pay stamp duty on the award.
20D. Award in Arbitration Case No.4 In so far as award pertaining to Yadgir Division, the Tribunal held that the Respondent herein is entitled to extension of time till date of award without levying liquidated damages. The Tribunal has further directed the Respondent to refund liquidated damages of Rs.3,38,67,577/- recovered from RA bills, pay simple interest at 15% on the amounts deducted as liquidated damages from its RA bills from the date of deduction until date of award, pay to the respondent Rs.2,11,80,215/- towards escalation, pay interest at the rate of 15% for delay in releasing RA bills from the due dates and pay Rs.23,93,405/- towards compensation for extension of Bank Guarantee beyond period of completion of project. The respondent has also been directed to pay future interest at the rate prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act 1996. All other claims of the Respondent and counter claims of the Appellants have been rejected. The Respondents have been directed to bear cost of arbitration and the Claimant has 21 been directed to pay stamp duty on the award.
E. Award in Arbitration Case No.5 In so far as award pertaining to Raichur Division, the Tribunal held that the Respondent herein is entitled to extension of time till date of award without levying liquidated damages. The tribunal has further directed the respondent to refund liquidated damages of Rs.4,57,70,309/- recovered from RA bills, pay simple interest at 15% on the amounts deducted as liquidated damages from its RA bills from the date of deduction until date of award, pay to the respondent Rs.2,31,78,587/- towards escalation, pay interest at the rate of 15% for delay in releasing RA bills from the due dates and pay Rs.47,53,248/- towards compensation for extension of Bank Guarantee beyond period of completion of project. The respondent has also been directed to pay future interest at the rate prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act 1996. The Appellant has been directed to conduct joint inspection 22 within six weeks from the date of the award and make payment at lump sum rates if any per kilometer stretch of feeder etc., if they are found to be used in terms of the contract. All other claims of the respondent and counter claims of the appellants have been rejected. The respondents have been directed to bear cost of arbitration and the claimant has been directed to pay stamp duty on the award.
F. Award in Arbitration Case No.6 In so far as award pertaining to Hospet Division, the Tribunal held that the Respondent herein is entitled to extension of time till 30.10.2009 without levying liquidated damages. The tribunal has further directed the respondent to refund liquidated damages of Rs.2,29,85,941/- recovered from RA bills, pay simple interest at 15% on the amounts deducted as liquidated damages from its RA bills from the date of deduction until date of award, pay to the respondent Rs.1,93,73,611/- towards escalation, pay interest at the rate of 15% for delay in releasing RA bills from the due dates and 23 pay Rs.12,43,654/- towards compensation for extension of Bank Guarantee beyond period of completion of project. The respondent has also been directed to pay future interest at the rate prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act 1996. All other claims of the respondent and counter claims of the appellants have been rejected. The respondents have been directed to bear cost of arbitration and the claimant has been directed to pay stamp duty on the award.
3. During the pendency of the present Appeals, The parties hereto have arrived at an amicable settlement of the disputes that have arisen and therefore seek to modify the award to the following extent mentioned hereunder.
I. Regarding award in Arbitration Case No.1 After mutual discussion, the parties hereto have agreed to the following:
a) The Future interest shall be paid at 9% p.a. from the date of award until date of 24 settlement instead of the rate of interest prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996.
b) The sums payable by the appellant to the respondent shall be frozen at Rs.1,16,61,147/- as on 31.12.2015 and the first instalment of payment shall be made by the appellant to the respondent in the month of February 2016 pursuant to which the balance sums will be paid on a regular basis and cleared before the end of May 2016.
II. Regarding award in Arbitration Case No.2 After mutual discussion, the parties hereto have agreed to the following:
a) The Future interest shall be paid at 9% p.a. from the date of award until date of settlement instead of the rate of interest prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996.
b) The sums payable by the appellant to the respondent shall be frozen at 25 Rs.14,90,84,126/- as on 31.12.2015 and the first instalment of payment shall be made by the appellant to the respondent in the month of February 2016 pursuant to which the balance sums will be paid on a regular basis and cleared before the end of May 2016.
III. Regarding Award in Arbitration Case No.3 After mutual discussion, the parties hereto have agreed to the following:
a) The Future interest shall be paid at 9% p.a. from the date of award until date of settlement instead of the rate of interest prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996.
c) The sums payable by the appellant to the respondent shall be frozen at Rs.12,57,73,077/- as on 31.12.2015 and the first instalment of payment shall be made by the appellant to the respondent in the month of February 2016 pursuant to which the balance sums will be paid on a regular basis and cleared before the end of May 2016.26
IV. Regarding award in Arbitration Case No.4 After mutual discussion, the parties hereto have agreed to the following:
a) The Future interest shall be paid at 9% p.a. from the date of award until date of settlement instead of the rate of interest prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996.
b) The sums payable by the appellant to the respondent shall be frozen at Rs.11,90,62,461/- as on 31.12.2015 and the first instalment of payment shall be made by the appellant to the respondent in the month of February 2016 pursuant to which the balance sums will be paid on a regular basis and cleared before the end of May 2016.
V. Regarding Award in Arbitration Case No.5 After mutual discussion, the parties hereto have agreed to the following:
27a) The Future interest shall be paid at 9% p.a. from the date of award until date of settlement instead of the rate of interest prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996.
b) The sums payable by the appellant to the respondent shall be frozen at Rs.15,63,41,616/- as on 31.12.2015 and the first instalment of payment shall be made by the appellant to the respondent in the month of February 2016 pursuant to which the balance sums will be paid on a regular basis and cleared before the end of May 2016.
VI. Regarding Award in Arbitration Case No.6 After mutual discussion, the parties hereto have agreed to the following:
a) The Future interest shall be paid at 9% p.a. from the date of award until date of settlement instead of the rate of interest prescribed under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996.28
b) The sums payable by the appellant to the respondent shall be frozen at Rs.9,33,33,014/- as on 31.12.2015 and the first instalment of payment shall be made by the appellant to the respondent in the month of February 2016 pursuant to which the balance sums will be paid on a regular basis and cleared before the end of May 2016.
4. The parties hereto have agreed that the sums mentioned herein above shall be subject to verification by the Chartered Accountant and Internal Audit.
5. The parties hereto pray that this Hon'ble Court may be pleased to modify the award dated 24.02.2013 to the extent mentioned herein in above.
Wherefore, it is respectfully prayed that this Hon'ble Court may be pleased to modify the award dated 24.02.2013 in terms of settlement agreed to between the parties and dispose off the appeals in terms thereof in the interest of justice."
296. In the light of the terms and conditions of the aforesaid joint memo and also the submission of the learned counsel appearing for both the parties, the appeals filed by appellants are disposed of, modifying the impugned order dated 2nd February 2015, passed in A.S. No.3/2013, A.S.No.4/2013, A.S.No.5/2013, A.S.No.6/2013, A.S.No.7/2013 & 8/2013 respectively, by the Principal District Judge, Bangalore Rural District, Bangalore.
In view of disposal of all these appeals, I.A.No.1/2015 filed in each of these appeals do not survive for consideration and they are accordingly disposed of as having become infructuous.
SD/-
JUDGE SD/-
JUDGE BMV*