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1 - 10 of 22 (0.03 seconds)Konkan Railway Corporation Limited vs Chenab Bridge Project Undertaking on 17 August, 2023
54. The reliance placed by the Respondent-Claimant upon
the judgments, namely Konkan Railway Corporation Limited Vs.
Chenab Bridge Project Undertaking (supra), McDermott International
Inc. (supra) and Ivory Properties & Hotels Private Limited (supra) in
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support of their contention that merely because the Court would
have interpreted the Contract differently interference with the Award
is not warranted, is misplaced.
Section 26 in The Specific Relief Act, 1963 [Entire Act]
Unio Of India vs M/S.Airwide Express Cargo on 6 April, 2015
It has also been held by this Court in Union of India
Vs. Airwide Express Cargo (supra), relied upon by the Petitioner-
Respondent that inter-departmental notings have no legal effect
unless communicated to the other party. This Court set aside the
Arbitral Award, which relied upon such uncommunicated notings,
observing that internal discussions cannot alter Contract terms or
bind parties unless formally conveyed.
Mcdermott International Inc vs Burn Standard Co. Ltd. & Ors on 12 May, 2006
54. The reliance placed by the Respondent-Claimant upon
the judgments, namely Konkan Railway Corporation Limited Vs.
Chenab Bridge Project Undertaking (supra), McDermott International
Inc. (supra) and Ivory Properties & Hotels Private Limited (supra) in
35
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support of their contention that merely because the Court would
have interpreted the Contract differently interference with the Award
is not warranted, is misplaced.
Section 26 in The Arbitration Act, 1940 [Entire Act]
Union Of India vs M/S. Bharat Enterprise on 23 March, 2023
52. Having considered the submissions, the limited issue
which fell for determination before the Arbitral Tribunal was whether
the royalty levied by the State Government of Madhya Pradesh
towards earthwork in filing in embankment used in the said work
was payable by the Petitioner-Respondent or the Respondent-
Claimant. It was therefore, necessary for the Arbitral Tribunal to
determine this issue in consonance with the terms of the Contract
between the Petitioner-Respondent and the Respondent-Claimant. It
is well settled that the Arbitral Tribunal being a creature of Contract
cannot traverse beyond and is bound by the Contract. This has been
held in the judgment relied upon by the Petitioner-Respondent viz.
Union of India Vs. Bharat Enterprise (supra).
Mahadeo vs Sovan Devi on 30 August, 2022
56. The reliance placed by the majority Arbitrators on the
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minutes of the meeting of the Tender Committee, is misplaced. It is
settled law that inter-departmental communications / file notings
have no legal sanctity and/or do not create any enforceable rights.
The judgment relied upon by the Petitioner-Respondent, namely
Mahadeo Vs. Sovan Devi (supra) is apposite. It has been held that
these inter-departmental communications are at best preparatory
steps or expressions of tentative views. Unless notings culminate in a
final decision, they cannot be relied upon as a basis for any legal
right or liability.
Ivory Properties And Hotels Pvt. Ltd vs Vasantben Ramniklal Bhuta And Anr on 10 July, 2023
54. The reliance placed by the Respondent-Claimant upon
the judgments, namely Konkan Railway Corporation Limited Vs.
Chenab Bridge Project Undertaking (supra), McDermott International
Inc. (supra) and Ivory Properties & Hotels Private Limited (supra) in
35
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support of their contention that merely because the Court would
have interpreted the Contract differently interference with the Award
is not warranted, is misplaced.
Associate Builders vs Delhi Development Authority on 25 November, 2014
63. This Court is mindful of the fact that judicial interference
with Arbitral Awards under Section 34 of the Arbitration Act is
limited. However, where the Arbitral Tribunal departs from the terms
of the Contract or acts beyond its jurisdiction by making a new
Contract of the parties, such interference is not only be permissible
but necessary. The Supreme Court in Associate Builders Vs. Delhi
Development Authority13 laid down that an Award would be liable to
13 (2015) 3 SCC 49
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be set aside under Section 34, if it suffers from patent illegality,
including contravention of substantive provisions of law; ignoring
binding judicial precedents; or misconstruction of the terms of the
Contract. The present case is one such case where the Award is liable
to be set aside under Section 34 of the Arbitration Act, as it suffers
from patent illegality.