Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 34 Arbitration and Conciliation Act 1996 – ss.5 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Arbitration and Conciliation Act, 1996 (26 of 1996) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Contract – Clause therein, putting bar on reimbursement of certain payments on account of escalation – Interpretation of – Contract between appellant and respondent-Contractor– During the subsistence of contract, notification issued by which minimum wages of the labour was increased– Along with the final bill, the respondent also claimed reimbursement of wages in view of such increase in wages of labour – Claim of additional amount rejected by appellant– Dispute referred to arbitration – Award passed by arbitrator in favour of the respondent – Challenge by appellant, rejected by High Court – On appeal, held: Parties are free to decide their own terms and conditions in case of a contract and the same are to be construed by the courts after having regard to the intention of the parties – In the instant case, in view of Cl.19 no reimbursement regarding any escalation whatsoever was to be made to the contractor if any such escalation took place during the subsistence of the contract – The word “whatsoever” as used in Cl.19 suggests that any escalation taking place even due to the action of the government was also not to be reimbursed – Further, on reading of Cl.6.3 which also deals with the issue in question, it is evident that no escalation was to be reimbursed – Hence, in the presence of such clauses, which respondent voluntarily agreed before accepting the contract, any departure cannot be allowed – Respondent cannot claim reimbursement of excess of minimum wages on account of hike due to the Notification as it would be against Cl.19 r/w. Cl.6.3– Arbitration and Conciliation Act, 1996 – ss.5, 34. Arbitration – Proceedings under – Object of – Discussed – Arbitration and Conciliation Act, 1996. |
Judge | Hon'ble Mr. Justice R.K. Agrawal |
Neutral Citation | 2018 INSC 375 |
Petitioner | Union Of India |
Respondent | Varindera Constructions Ltd. Etc. |
SCR | [2018] 5 S.C.R. 587 |
Judgement Date | 2018-04-19 |
Case Number | 3994 |
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