Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration Act 1940: Section 41A(l) Proviso and 41A(7} |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Arbitration Act, 1940: Section 41A(1) Proviso and 41A(7)-Proviso Cont:-act-Dispute-State party to the dispute-Reference to Arbitration Tribunal-As dispute involved was for more than rupees one crore Tribunal directed State to refer the dispute to Special Tribunal-State Notification constituting special Tribunal and reference of dispute-Held within the scope of Proviso to Section 41A(1).Award-Objections to-Constitution of Special Tribunal by State-Submission to jurisdiction without objection-Subsequent objections by State cannot be raised merely because award was against it.Award--Power of Court to enlarge time for making Schedule-Implied conditions-Condition No. 3-Should be read with Section 28-Tribunal entering reference--subsequent thereto time for award extended by consent of parties-Award given by Tribunal within extended time held valid.Section 30-Award-Setting aside of-Scope of Court's power.The appellant-Company entered into an agreement with the Respondent-State for construction of a dam. In terms of the agreement, the work was to be completed by 30.9.1982 and the escalation charges were to be paid to the contractor. On appellant-Company's request, the respondents granted extension of time for completion of project by December, 1985 and in the supplementary agreement it was provided that extra arrangement for completion of the work as per the agreed schedule should be done by the contractor without liability to the Government of Orissa or without liability to both contracting parties. A dispute having arisen between the parties on payment of escalation charges and certain other amounts, a reference was made to the Arbitration Tribunal constituted under section 41-A of the Arbitration Act, 1940 as introduced by Arbitration (Orissa) Amendment Act, 1982. Since the disputed amount was more than rupee one crore, the Arbitration Tribunal directed the State Government to exercise its power under Proviso to Section 41A(1) and to refer the dispute to Special Tribunal. Consequently by a Notification dated 6.5.88 the State Government referred the dispute before a Special Tribunal and the State submitted to its jurisdiction without raising any objections. After the special Tribunal entered reference, both the parties i.e. State and appellant-company submitted memorandum before it on two occasions on the basis of which the Tribunal extended time for submission of award for four months on both the occasions. But when the Special Tribunal gave its award the respondent-State raised objections. The Trial Court rejected the objections and made the award a rule of the Court.On appeal by the Respondent-State the High Court set aside the award on the ground that (1) the Constitution of the Special Tribunal under Section 41A of the Act and the reference of the dispute by the State Government which was already pending before the Arbitration Tribunal for adjudication was without jurisdiction; (2) the Special Tribunal had no jurisdiction to enlarge the time for making of the award; and (3) the Award was otherwise invalid due to non-consideration of relevant materials available on the record in respect of a question which was at issue. The High Court accepted the contention of the State that in view of the no liability clauses in the supplementary agreement, State Government was not bound to pay any charges under the head 'escalation'. Against the order of the High Court the appellant-Company preferred an appeal before this Court. |
Judge | Hon'ble Mr. Justice N.P. Singh |
Neutral Citation | 1995 INSC 157 |
Petitioner | The Hindustan Construction Co. Ltd. |
Respondent | Governor Of Orissa And Ors. |
SCR | [1995] 2 S.C.R. 441 |
Judgement Date | 1995-03-02 |
Case Number | 3158 |
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