NDLI: State of Chhattisgarh & Anr. Vs. M/s Sal Udyog Private Limited

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	37 34(2A) Arbitration and Conciliation Act 1996: ss. 34 28(3) – Arbitral award
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
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Arbitration and Conciliation Act, 1996: ss. 34, 37, 34(2A), 28(3) – Arbitral award – Interference with – Patent illegality – On facts, agreement between the parties wherein the State agreed to supply sal seeds to the respondent-company – Agreement clause providing for imposition of supervision charges on the amounts calculated towards the cost of the Sal seeds in the expenditure incurred by the State Government – However, the respondent- company claimed refund of the excess amount purportedly paid by it to the appellant-State towards supervision charges incurred for supply of Sal seeds – Arbitral award by the arbitrator that there was no basis to admit any such “indirect expenses” – Plea by the appellant-State that the Arbitrator as also the High Court ignored the binding terms of the contract governing the parties relating to recovery of ‘supervision charges’ from the respondent-Company – Held: An arbitral award may be set aside when there is “patent illegality” – Failure on the part of the Sole Arbitrator to decide in accordance with the terms of the contract governing the parties, attract the “patent illegality ground”, as it amounts to gross contravention of s. 28(3), that enjoins the Arbitral Tribunal to take into account the terms of the contract while making an Award – This is the patent illegality manifest on the face of the Arbitral Award inasmuch as the express terms and conditions of the Agreement governing the parties as also the Circular issued by the Government have been completely ignored – Award permitting deduction of ‘supervision charges’ recovered from the respondent-Company by the appellant-State as a part of the expenditure incurred by it while calculating the price of the Sal seeds, is quashed and set aside. ss. 34(2A), 37 – Application for setting aside arbitral award – Power of, when award vitiated by patent illegality – Applicability of the ground of patent illegality to appeal u/s. 37 – Held: s. 34(2A) empowers the Court to set aside an award if it finds that the same is vitiated by patent illegality appearing on the face of the award – Provision that enables a Court acting on its own in deciding a petition u/s.34 for setting aside an Award, would be available in an appeal preferred u/s. 37 of the Act – Expression used in the sub- rule is “the Court finds that” – Once the appellant-State takes such a ground in the s. 37 petition and it was duly noted in the impugned judgment, the High Court ought to have interfered by resorting to s. 34(2A), a provision which would be equally available for application to an appealable order u/s. 37 as it is to a petition filed u/s. 34 – Plea of waiver taken against the appellant-State on the ground that it did not raise such an objection in the grounds spelt out in the s. 34 petition and is, thus, estopped from taking the same in the appeal u/s. 37 or before this Court, not available to the respondent.
Judge	Hon'ble Ms. Justice Hima Kohli
Neutral Citation	2021 INSC 705
Petitioner	State Of Chhattisgarh & Anr.
Respondent	M/s Sal Udyog Private Limited
SCR	[2021] 11 S.C.R. 142
Judgement Date	2021-11-08
Case Number	4353

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

State of Chhattisgarh & Anr. Vs. M/s Sal Udyog Private Limited

Please Log-in to view this content

Reliance Infrastructure Ltd. Vs. State of Goa

Welspun Specialty Solutions Limited (formerly Known As Remi Metals Gujarat Ltd. Vs. Oil and Natural Gas Corporation Ltd.

State of Maharashtra Vs. M/s. Hindustan Construction Company Ltd.

Mmtc Ltd. Vs. M/s Vedanta Ltd.

M/s. Dyna Technologies Pvt. Ltd. Vs. M/s. Crompton Greaves Ltd.

M/s Hindustan Construction Company Limited Vs. M/s National Highways Authority of India

Indian Railway Construction Company Limited Vs. M/s National Buildings Construction

State of Arunachal Pradesh Vs. M/s. Damini Construction

M/s. Indian Farmers Fertilizer Co-operative Limited Vs. M/s Bhadra Products

State of Chhattisgarh & Anr. Vs. M/s Sal Udyog Private Limited

State of Chhattisgarh & Anr. Vs. M/s Sal Udyog Private Limited

Please Log-in to view this content

Similar Documents

Reliance Infrastructure Ltd. Vs. State of Goa

Welspun Specialty Solutions Limited (formerly Known As Remi Metals Gujarat Ltd. Vs. Oil and Natural Gas Corporation Ltd.

State of Maharashtra Vs. M/s. Hindustan Construction Company Ltd.

Mmtc Ltd. Vs. M/s Vedanta Ltd.

M/s. Dyna Technologies Pvt. Ltd. Vs. M/s. Crompton Greaves Ltd.

M/s Hindustan Construction Company Limited Vs. M/s National Highways Authority of India

Indian Railway Construction Company Limited Vs. M/s National Buildings Construction

State of Arunachal Pradesh Vs. M/s. Damini Construction

M/s. Indian Farmers Fertilizer Co-operative Limited Vs. M/s Bhadra Products

State of Chhattisgarh & Anr. Vs. M/s Sal Udyog Private Limited