NDLI: Parsa Kente Collieries Limited Vs. Rajasthan Rajya Vidyut Utpadan Nigam Limited

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Jurisdiction of the appellate court Appeal under s. 37 Arbitration and Conciliation Act 1996
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Arbitration and Conciliation Act, 1996 (26 of 1996)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Arbitration and Conciliation Act, 1996: s. 37 – Appeal under – Jurisdiction of the appellate court while considering the award passed by the arbitrator – Coal Mining and Delivery Agreement between the appellant and the respondent for supply of coal – Disputes between the parties, as regards the escalation price, fixed costs, amount lying in escrow account and cost of construction of railway siding – Award by arbitrator allowing the claims under the heads of ‘price adjustment’, ‘fixed costs’ and ‘escrow account’, however, rejected under the head ‘construction of railway siding’ – Award confirmed by the commercial court, however, set aside by the High Court – Justification of – On appeal, held: With respect to claim no.1-price adjustment/escalation, interpretation by the arbitrator was both possible as well as plausible – Merely because some other view could have been taken, the High Court was not justified in interfering with the interpretation –Though the High Court observed that the award passed by the arbitrator with respect to claim no.1 was against the public policy, but there was no element of public policy – High Court exceeded in its jurisdiction in interfering with the award passed by the arbitrator as regards claim no. 1 – With respect to claim no.2-fixed costs, the High Court rightly set aside the award passed by the arbitrator – Except the CA’s certificate, no further evidence had been led with respect to actual loss – On the contrary, in the relevant year the quantity of the coal lifted by the respondent was much above the fixed quantity – As regards, claim no.3-escrow account, the object and purpose of opening the escrow account was to see that the appellant company fulfils the contract as per the agreement and till the closure of the coal blocks – It was not open for the appellant to claim the amount lying in the escrow account, else the object of opening the escrow account would be frustrated – Thus, with respect to claim no.3- escrow account, the High Court rightly held the reasoning is perverse or so irrational that no reasonable person could have arrived at on the material/evidence on record – Thus, the order passed by the High Court as regards claim no. 1 is set aside and the award passed by the arbitrator with respect to claim no.1 is restored and the order passed by the High Court setting aside the award with respect to claim no.2-fixed costs and claim no.3-escrow account is upheld.
Judge	Hon'ble Mr. Justice M.R. Shah
Neutral Citation	2019 INSC 687
Petitioner	Parsa Kente Collieries Limited
Respondent	Rajasthan Rajya Vidyut Utpadan Nigam Limited
SCR	[2019] 8 S.C.R. 728
Judgement Date	2019-05-27
Case Number	9023

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Parsa Kente Collieries Limited Vs. Rajasthan Rajya Vidyut Utpadan Nigam Limited

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Parsa Kente Collieries Limited Vs. Rajasthan Rajya Vidyut Utpadan Nigam Limited

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