Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Section 30 1940 Indian Arbitration Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Indian Arbitration Act, 1940; Section 30 : Agreement entered into between a Company and a supplier for supply of oxygen-Arbitration Clause -Breach of terms-Claims and counter-claims-Arbitrator gave award in favour of the supplier-Challenge to-Set aside by Single Judge of the High Court-Affirmed by Division Bench of the High Court-On appeal, Held: Court while exercising the power under Section 30 of the Act cannot re-appreciate the evidence/examine correctness of the award. The Court could interfere with the award only on the ground of misconduct or when the award was either improperly procured or otherwise invalid-Since the company failed to prove that they purchased oxygen from other sources in breach of the agreement by the supplier, Arbitrator was right in rejecting their claim-High Court not justified in setting aside the Award on ground of misconduct-Sale of Goods Act, 1930-Section 61. Interest-Power of Arbitrator-Held: Arbitrator is competent ·to award interest for pre-reference period, pendente lite and post award period provided the rate of interest is reasonable-Since the company had advanced load to 'the supplier @ 18%, Arbitrator was right in awarding the same rate of interest in favour of the supplier. The questions which arose for determination in these appeals were as to whether on the facts and in the circumstances of the case, the Arbitrator was right in allowing the claim of the appellant-supplier against the respondent, a Public Sector Undertaking/company in terms of the arbitration clause and on the ground of breach of agreement; as to whether the Arbitrator had misconducted himself in passing the impugned award by dismissing the counter claim of the company and as to whether the Single Judge and the Division Bench of the High Court were right in setting aside a part of the award by directing the Arbitrator to re-consider the matter and decide it afresh; as to whether the Arbitrator had power to award interest at the rate of eighteen per- cent per annum for pre-reference period, pendente lite and post reference future interest from the date of award till the date of payment and as to whether the single Judge as also and the Division Bench was justified in reducing the rate of interest from eighteen per cent to six per cent. |
Judge | Hon'ble Mr. Justice C.K. Thakker |
Neutral Citation | 2005 INSC 184 |
Petitioner | Bhagawati Oxygen Ltd. |
Respondent | Hindustan Coper Ltd. |
SCR | [2005] 3 S.C.R. 232 |
Judgement Date | 2005-04-05 |
Case Number | 2412 |
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