Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Arbitration and Conciliation Act 1996 |
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 - s. 34 -Arbitration award - Challenge to - Main contract betweenthe Company S as main contractor and the appellant assuccessful tenderer - For execution of the same appellantentered into sub-contracts, C1 and C2 packages with therespondent-sub-contractor- Completion of67% of the workby respondent but thereafter ceased to work- Non-paymentof certain amount to respondent by appellant - Arbitrationmatters - In the First Arbitration, respondent made claimsagainst appellant claiming the unpaid b~lance amount - Inthe Second Arbitration, appellant made claims against themain contractor regarding pending payments pertaining toC1 and C2 packages - Award passed by the arbitratorwherein appellant liable to make payment to respondent -Appellant challenged the award by filing petitions uls. 34 -Subsequently respondent filed applications contending thatwhile appellant rejected its claim initially, at the same time itclaimed the amount against the main contractor-Appel/ant'scase that the main contract and the sub-contracts are whollyof 'back to back nature and thus, liability of the appellantwould be restricted to and co-extensive of that which maincontractor acknowledges - Both the High Court dismissedthe appellant's petition and allowed the respondent'sapplications - On appeal, held: Orders passed by thearbitrator and courts below do not call for interference - Onfacts, it cannot be said that contractor's contract with the appellant provided for "back to back" subcontracts wherebymain contractor would be directly answerable for the claimsraised by contractors - Subletting was provided for by themain contract - However, it cannot be said that maincontractor contractually (in the main agreement) assumedprimary liability for the subcontractor's claims in respect ofagreements made with the appellant - Appellant concededbefore the Arbitrator that it would countenance an Award infavour of the respondent as long as it was indemnified forthe payment made to the respondent by an equal offsettingpayment by way of an Award in its favour in its arbitrationwith main contractor-Appellant was granted such an Award- Concession could be called a conditional one, however,the admission itself, taken alone, was not conditional -Appellant was bound and bonded by the legal consequencesof the initial admission made by it before the arbitrator. |
Judge | Hon'ble Mr. Justice Vikramajit Sen |
Neutral Citation | 2015 INSC 382 |
Petitioner | Zonal General Manager, M/s Ircon International Ltd. |
Respondent | M/s Vinay Heavy Equipments |
SCR | [2015] 6 S.C.R. 938 |
Judgement Date | 2015-05-06 |
Case Number | 4211 |
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