Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration Act 1940 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Arbitration Act, 1940:s.23 - Reference by court for arbitration - Power of arbitrator- HELD: Arbitrator in such matters has all the powers which the court itself would have in deciding the issues in the suit - Arbitrator was well within his jurisdiction to frame such additional issues as would be just and necessary for disposal of reference u/s 23. s.30-Award by arbitrator- HELD: An award by arbitrator is ordinarily final and courts hearing application u/s 30 would not exercise any appellate jurisdiction - Reappraisal of evidence of court is impermissible - Once it is found that view of arbitrator is plausible, court will refrain itself from interfering. Arbitration - Interpretation of agreement - HELD: Is a matter for arbitrator to determine - In order to determine scope of an agreement, intention of parties is to be gathered - In the instant case, arbitrator having considered the relevant agreements, and subsequent events and documents including correspondence between parties, rightly arrived at the conclusion that cost of construction mentioned in Clause 1 of agreement dated 30 5. 1980 was tentative, and though in Clause 4 thereof a date was mentioned for payment, but time was not the essence of contract. Arbitrator - Misconduct - HELD: Erroneous application of law constituting the very basis of award and improper and incorrect findings of fact, which without closer and intrinsic scrutiny are demonstrable on the face of material on record are held as legal misconduct rendering the award as invalid - In the instant case, there is no erroneous application of law by arbitrator or any improper or incorrect finding demonstrable on the face of material on record - There is nothing in the award requiring interference by courts - Courts rightly refused to interfere with the award passed by arbitrator- It is not a fit case warranting interference in exercise of jurisdiction under Article 136 of the Constitution - Constitution of India, 1950 - Article 136. The appellant-Housing Board and the respondent depositor entered into an agreement on 18.2.1975 stipulating that the Board would execute construction of Press Complex building for the respondent. The depositor made the initial payment towards the proposed cost, but since it failed to deposit the balance amount, another agreement dated 4.5.1977 was entered into between the parties to the effect that the depositor would transfer the total area of the land and building to the Board, which in turn would re-transfer a part of the constructed portion to E the depositor. The parties entered into a third building agreement on 31.5.1980 which stated that the depositor would take the entire complex building on payment of the total amount of cost which was estimated at Rs.73.50 lakhs. Under Clause 4 of the agreement, the depositor agreed to pay the entire amount not later than 31.10.1980, failing which the agreement would be deemed to have been cancelled. The depositor could not comply with Clause 4 of the third agreement by 31.10.1980 and subsequently made certain representations to the Board that they were willing to perform their part but were unable to do so for want of proper accounts and other details from the Board. The Board first filed a suit for permanent injunction and subsequently a comprehensive suit for declaration, specific performance of the contract and permanent injunction. The trial court referred both the suits for arbitration. The arbitrator made the award whereunder the Board was required to handover immediate possession to the depositor and the Board would be entitled to a sum of Rs.37,70,309.87. In case of any default, the Board was held to be entitled to interest at 18% per annum capitalized quarterly. The trial court confirmed the award and the High Court dismissed Board's appeals. In the instant appeal filed by the Housing Board it was contended for the appellant that the arbitrator · committed grave misconduct as he disregarded the terms of the contract and based the award on conjectures and · surmises. It was submitted that the arbitrator exceeded his jurisdiction by framing and deciding issues which :1 were not referred to him by the parties. The questions for consideration before the Court were: (i) whether the third agreement dated May 31, 1980 stood automatically cancelled on account of non- compliance of the terms there.under by the depositor and the second agreement dated May 4, 1977 stood automatically revived; and (ii) whether time was the essence of the third agreement dated May 31, 1980. |
Judge | Hon'ble Mr. Justice B. Sudershan Reddy |
Neutral Citation | 2009 INSC 375 |
Petitioner | M.p. Housing Board |
Respondent | Progressive Writers & Publishers |
SCR | [2009] 4 S.C.R. 725 |
Judgement Date | 2009-03-20 |
Case Number | 1746 |
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