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(PER: HON'BLE MR JUSTICE V KAMESWAR RAO) This appeal under Section 37(1)(c) of the Arbitration and Conciliation Act, 1996 (in short, the Act of 1996) read with Section 13(1A) of the Commercial Courts Act, 2015 has been filed by the appellant-M/s.Mphasis Limited challenging the order/judgment dated 31.05.2022 passed by LXXXIV Additional City Civil and Sessions Judge, Bengaluru (CH-85) (in short, 'Sessions Judge') in Com.A.P.No.23/2021, whereby the learned Sessions Judge has allowed the petition-AP No.23/2021 filed under Section 34 of the Act of 1996 by the Respondent No.1 herein and set aside the Arbitral Award dated 10.06.2020 passed by the learned sole Arbitrator in SBA/AC-01/2019.

SUBMISSIONS:

16. The submissions of Mr. Dhananjay V.Joshi, the learned Senior Counsel for the appellant-M/s Mphasis Limited are that, while the appellant was successful claimant before the learned Arbitrator; the learned Sessions Judge has, without any basis, contrary to the provisions of Section-34 of the Act of 1996 and contrary to the settled position of law has set aside the award by re-appreciating the evidence, albeit incorrectly and supplanting its own view over the findings of the learned Arbitrator. According to him, the Respondent No.1 had induced the appellant in entering into a Settlement Agreement dated 02.09.2014 under which the appellant was persuaded to receive a lesser amount in full and final settlement of its total claim on the terms and conditions set out in the said agreement. He stated, Clause- 9 of the Settlement Agreement, the appellant and Respondent No.1 had opened a joint Escrow Account with the ICICI Bank Limited. In further compliance of its obligation under Clause-9 of the Settlement Agreement, the Respondent addressed a letter dated 30.09.2014 to NIELIT duly furnishing the details of the Escrow Account and instructing NIELIT to update the bank account details for release of the project payments arising out of and in relation to the project. In fact, a letter dated 30.09.2015 of the Respondent No.1 and the appellant had jointly requested the NIELIT to release payment in relation to the said project into the Escrow Account. He lays stress on the fact that, on 10.11.2016, the appellant and Respondent No.1 had amended the Settlement Agreement thereby amending the release of funds and requiring the appellant to withdraw a criminal complaint that it had filed against the Respondent No.1. Accordingly, on 06.01.2017, in compliance of Clause- 2, the appellant withdrew the criminal complaint. However, after withdrawal of the criminal complaint, there was no communication from the Respondent No.1 in spite of more than one year has passed by and in spite of repeated follow- up with the Respondent No.1. The appellant did not receive any updates on the status of the payments being released by NIELIT.

11. Further remittances of amounts from NIELIT shall be shared in the ratio of 60:40 between Sreeven and Mphasis, respectively upto a limit of Rs.2,00,00,000/- for Sreeven's benefit.

12. All further remittances from NIELIT shall be disbursed only to Mphasis and Sreeven shall have no share or claim whatsoever.

For illustration:

Details       Cumulative                Sreeven         Mphasis
              Receipts                  Inforcamm
                                        (Beneficiary)   Limited
                                                        (Client)
              Rs.57.45       Lakhs
              (Rupees Fifty Seven
              Lakhs and Forty Five
              thousand only)
                                            0%             100%
              Rs.57.45          Lakhs
              (Rupees Fifty Seven
              Lakhs and Forty Five
              thousand    only)    to
              Rs.257.45         Lakhs
              (Rupees    Two    Crore
              Fifty Seven Lakhs and
              Forty Five thousand        100%               0%
              only)



              Rs.257.45         Lakhs
              (Rupees Two Crore Fifty
              Seven Lakhs and Forty
              Five thousand only) to
              Rs.590.78         Lakhs                       40%
              (Rupees      Five Crore    60%
              Fifty Ninety Lakhs and
              Seventy Eight thousand
              only) (Note-1)


              Above Rs.590.78 Lakhs
              (Rupees     Five Crore        0%            100%
              Fifty Ninety Lakhs and
              Seventy Eight thousand
              only) (Note-1)