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Showing contexts for: engineering contract in Kmc Brahmaputra Infrastructure ... vs The Chief Engineer, Road And Bridges ... on 20 December, 2022Matching Fragments
(iv) The use of the word "perverse" and "patently illegal" by the Commercial Court is erroneous since the Supreme Court in Ssangyong Engineering and Construction Company Limited vs. National Highways Authority of India (NHAI) has explained the import of "patent illegality" and "perversity". Thus, the Commercial Court exceeded the scope of section 34 of the Arbitration Act, as nothing (2017) 8 SCC 146 (2019) 20 SCC 1 (1976) 3 SCC 32 (2011) 10 SCC 573 (2019) 15 SCC 131 KMC Brahmaputra Infrastructure Limited vs. The Chief Engineer, Roads & Bridges Department, Government of Sikkim illegal or perverse emerges in the claim for Loss of Profit which was duly awarded by the Tribunal. As the impugned order suffers from non-application of mind and misconstruction of the findings in the Award, the present Appeal be allowed and the impugned order of the Commercial Court, dated 17-06-2021 (supra), be set aside. 10(i). Resisting the arguments put forth by learned counsel for the appellant, learned counsel for the respondent would contend that the Commercial Court has rightly set aside the Award on Loss of Profit. The appellant had executed only 19% of the work, towards which a sum of more than ₹ 27,00,00,000/- (Rupees twenty seven crores) only, was already paid, but even after 6 (six) years of the commencement of the work, the appellant was unable to build a single kilometer of paved road out of the entire length. Significant evidence which undermined the claim for Loss of Profit and the admission of the appellant that it was incurring losses in the Contract was entirely ignored by the Tribunal. On this aspect, the respondent relied on Hudson's Building and Engineering Contracts . It was contended that in fact, the appellant would not have made any profit in executing the Contract, for the reason that no profit element was incorporated into the appellant's bid as it had underbid by 10% less than the estimated value of the Contract. Reliance was placed on this count in GTM Builders & Promoters Pvt Ltd vs. Sneh Developers Pvt Ltd and State of State of Madhya Pradesh and Others vs. M/s. Recondo Limited, Bhopal9 wherein the Courts were loathe to allow damages towards Loss of Profit in the absence of proof. The findings of the Tribunal, which have not been 13th Edition at Pages 869-872 (Sweet & Maxwell) Judgment of the High Court of Delhi in O.M.P.(COMM) 10/2016 & IA Nos.6379/2016 & 4720/2017 dated 03-07-2018 1989 M.P.L.J 822 KMC Brahmaputra Infrastructure Limited vs. The Chief Engineer, Roads & Bridges Department, Government of Sikkim challenged by the appellant, indicate acceptance of imprudence in its work, raising serious concerns on its ability to perform the Contract. The contents of the letter dated 13-09-2014 addressed to the respondent Department by the appellant would fortify the submission on whether the appellant would have made any profit on account of increase in the value of the Contract.