Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1996 : Arbitration and Conciliation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Arbitration and Conciliation Act, 1996 :ss. 31 (8) and 38 - Arbitration agreement requiring the contractor to deposit, as security, 7% of amount claimed HELD: Provisions of ss. 31(8) and 38 would operate in absence of agreement with regard to cost, but cannot be pressed into service to get over the agreement - High Court rightly held .that contractor was required to make the deposit. The respondent-Government allotted to the appellant ~contractor the work of constructing its office building.The I dispute having arisen between the parties, the appellant invoked the arbitration clause of the agreement. The respondent raised objection to maintainability of arbitration proceedings for failure of the appellant to deposit 7% of the amount claimed, in terms of the arbitration clause. The arbitration tribunal sustained the objection. The appellant approached the High Court contending that the arbitration clause with a requirement of security deposit on the part of the contractor was in conflict with the provisions. of ss. 31 (8) and 38 of the Arbitration and Conciliation Act, 1996. The High Court dismissed the writ petition.In the appeal filed by the contractor, it was contended for the appellant that the relevant arbitration clause of the agreement requiring the contractor to make the deposit was a result of unequal bargaining power of the parties and since the Government was not to make the deposit, it was unconscionable and as such the High Court erred in dismissing the writ petition. It was alternatively contended that. there ought to be a cap as regards the quantum of the deposit. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2009 INSC 233 |
Petitioner | S.k. Jain. |
Respondent | State Of Haryana And Anr. |
SCR | [2009] 2 S.C.R. 1080 |
Judgement Date | 2009-02-23 |
Case Number | 1156 |
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