Karnataka State Highways Improvement vs M/S Rvcpl Ridl Jv on 5 January, 2022
52. Further, the Arbitral Tribunal has disregarded the law laid
by the Hon'ble Supreme Court in State of Gujarat Vs Kothari &
Associates relied upon by the respondent, despite
demonstrating that the cause of action for loss of overheads,
loss due to idling of plant and machinery, loss of profits and loss
due to delay in making payment on approval of variation arose
from the cause of action for disputes 2 and 3 before the first AT.
The Arbitral Tribunal also failed to appreciate that such a claim
was barred by limitation. Disregard for the law laid down by the
superior courts amounts to violation of the fundamental policy of
Indian law. Therefore, the point for consideration is answered in
the affirmative holding that the impugned award is liable to be
set aside U/s 34(2)(b)(ii) and 34(2A) of the Act.