A. Motor Vehicles Act, 1988—Section 145—Non-joinder of Driver—Driver is a proper party but not a necessary party for claim petition—Non-joinder by claimant does not vitiate award as Tribunal is duty-bound to implead necessary parties and issue notices. (Paras 20, 21) B. Motor Vehicles Act, 1988—Sections 145, 146, 166—Definition of "Third Party"—Any person other than insurer and insured qualifies as a third party—Deceased son of owner travelling as labourer held third party to insurance contract. (Paras 14, 15, 16) C. Motor Vehicles Act, 1988—Section 168—Multiplier in Death Cases—Multiplier should be based on age of deceased, not dependants—Tribunal erred applying multiplier based on mother’s age; correct multiplier for 23-year-old deceased is 18....
Award amount—The petition was filed by an Insurance Company challenging a High Court judgment that held the truck driver solely negligent in an accident causing the death of a motorcyclist—Initially, the Tribunal had found contributory negligence on the part of the deceased and apportioned 50% liability on the insurer—However, on appeal, the High Court reversed this, placing full liability on the truck driver and enhanced the compensation—The Insurance Company argued that the deposition of the truck driver and the Investigating Officer (IO) indicated contributory negligence by the bike rider—However, contradictions in the IO’s testimony, including deviation from the charge sheet and admission that the vehicle’s positions might have changed, weakened their case—The eyewitness, PW3, a friend o...
Legal Services Authorities Act, 1987—Sections 22A, 22B—The case concerns the jurisdiction and procedural aspects of the Permanent Lok Adalat (PLA) under the Legal Services Authorities Act, 1987—The Court clarified that the jurisdiction of the PLA, as per Sections 22A and 22B, is limited to disputes related to "public utility services" and primarily involves disputes between service providers and consumers/users—Claims based on tortious liability, such as personal injury due to electrocution by a third-party contractor, fall outside this jurisdiction—The Court also interpreted Section 22C(1) to restrict PLA’s jurisdiction to parties directly involved in disputes regarding public utility services, rejecting broader interpretations—Furthermore, the Court emphasized that while PLA procedures...
(A) Code of Civil Procedure, 1908—Section 34—Award of interest—In this case, shares were transferred to the State Government in 1973, but the fair valuation was delayed for five decades—The court awarded simple interest at the rate of 6% per annum from 8th July 1975 until the date of the decree—From the date of the decree onwards, interest was set at 9% per annum until realization—This decision sought to balance fairness to the claimant with financial prudence towards the State Government, acknowledging the delay while considering the impact on state resources. (Paras 13, 14, 17) (B) Code of Civil Procedure, 1908—Section 34—The discretionary power of courts to award interest was clarified, emphasizing that the award should be compensatory rather than punitive—Courts m...
Power of Attorney Act, 1882, Section 2—Arbitrariness in contract awards—Valid Power of Attorney—Coal Mining Bid—Rejection of—Eligibility criteria—The Supreme Court addressed the appeal challenging the rejection of the appellant's technical bid by Respondent-BCCL for a coal mining project, while accepting Respondent No.8's bid despite its non-compliance with mandatory requirements—The Court found BCCL's actions arbitrary and discriminatory, as the appellant met all eligibility criteria, including a valid Power of Attorney—BCCL's rationale for rejection was deemed unjustified, highlighting that government bodies must act fairly and transparently in contract awards—The Court invoked the Wednesbury Principle, asserting that decisions must be reasonable and free from arbitra...
Arbitration Act, 1940,, Section 30, read with Sections 33 and 41—Award—In the context of PWD arbitrations before 1986, there was no requirement for a speaking award with reasons—Under the 2015 Amendment to the Arbitration and Conciliation Act, 1996, "patent illegality" has been introduced as a ground for challenging awards, though it cannot be based solely on erroneous application of law or re-appreciation of evidence—The case at hand involved a challenge to an arbitration award where the Arbitrator had provided reasons for most components of the award—The Arbitrator's reference to "partial breach" and evaluation of claims, including extra expenses, were considered reasonable—The court emphasized that within the limited scope under Section 30 of the Arbitration Act, 1940, it cann...
Award—Arbitration and Conciliation Act, 1996—Sections 34 and 34 (3) —Limitation Act, 1963—Sections 4 and 12 (1) —Construction of bridge—Contractor for—Respondent appointed by State—Dispute between parties—Respondent invoked arbitration clause in contract—Arbitral Tribunal passed an award—Directing appellant to pay a sum of Rs. 2,11,67,054/- to respondent with interest thereon—Same day appellants received a copy of award—High Court was closed for pooja vacation from 1.10.2022 to 30.10.2022—Appellant challenged award—Filed petition for—Dismissed by High Court—On ground of bar of limitation—Hence present appeal—In the instant case, three months provided by way of limitation expired a day before commencement of pooja vacation&mdas...
Code of Civil Procedure, 1908, Section 115Order XXXVII Rule 3 (5)—Hindu Marriage Act, 1955, Section 13 (1) (ia) and (ib)—Protection of Women for Domestic Violence Act, 2005, Section 12, Section 26 and 36—Award interest—The petitioner in this case seeks to set aside the impugned order, while the respondent argues for the dismissal of the instant petition—The petitioner contends that leave to defend should be granted as a general rule, with denial being an exception, particularly when the defendant can present a valid defense or raise genuine triable issues—Order XXXVII of the Civil Procedure Code (CPC) allows for swift recovery of dues by the plaintiff without a lengthy lawsuit, but Rule 3 states that if the defendant can demonstrate a valid defense or genuine triable issues, they should be granted uncon...
Land Acquisition Act, 1894, Section 9, 4(1)—Award The appeal, under Clause 15 of the Letters Patent, challenges the judgment in W.P.No.7650 of 2009—The petitioner contested the acquisition of three acres and thirty-one cents of land, asserting non-service of notice under Section 9 of the Land Acquisition Act, 1894—The court found flaws in the notice process, emphasizing discrepancies in notifications and the petitioner's continued possession. While the appellant argued Section 9 non-compliance isn't fatal, relying on precedent, the court considered Section 24(2) of the 2013 Act—Noting insufficient evidence of compensation tender and vague possession claims, it ruled the acquisition lapsed, setting aside the award—The court granted liberty for fresh acquisition under the 2013 Act, dismissing the appeal...
(A) Arbitration & Conciliation Act, 1996, Section 14(2), 14(1)(a), 34, 9, 17—Commercial Court—Interim award—Arbitration proceedings were initiated, and an interim award was made in January 2007—Subsequent legal challenges and delays ensued—In 2014, an interim order was passed ex parte, leading respondent No.1 to write a letter stating that, due to the delay, the arbitrator's mandate had ended, and respondent No.1 threatened to file an application under Section 14(2) of the Arbitration & Conciliation Act, 1996. (B) Arbitration & Conciliation Act, 1996, Section 14(2), 14(1)(a), 34, 9, 17—Interim award—Delay Ex-parte order—The arbitrator continued proceedings after a significant delay, prompting respondent No.1 to file an application under Section 14(2) in...
The petitioner challenged the extension of a parking contract awarded to respondent 5, alleging irregularities in the tender process, absence of proper records, and potential loss to the public exchequer—The petitioner contended that the extension was unjustified, as no documentation supported the area’s designation as a zero parking or containment zone during the COVID-19 pandemic—The respondents defended the extension and tender conditions, including the mandatory "AA" Class Contractor registration—Upon review, the court identified significant discrepancies, notably the use of the same IP address by two bidders who were real brothers, indicating possible manipulation—Additionally, there was no evidence to substantiate the claim that the parking area was a zero or containment zone—Consequentl...
(A) Arbitration and Conciliation Act, 1996 - Sections 34 and 37—Any award of an arbitrator—Statement summarizes a legal principle related to arbitration and judicial decisions—It asserts that any award issued by an arbitrator or tribunal that attempts to go beyond or contravene a binding judicial decision conflicts with fundamental public policy and is therefore not sustainable—The principle further emphasizes that when a judicial decision from a superior court is binding on an inferior court, the inferior court must accept it gracefully, even if the decision is not to its liking—This principle also applies to arbitrators and multi-member arbitral tribunals, especially when they are confronted with a judicial decision, whether it is related to Section 34 or Section 37 of the Act, that orders a limited re...
Promotion of employees in Uttar Pradesh Subordinate Offices Ministerial Group "C" posts—The appellants were denied promotion despite being senior, and a legal battle ensued—The court found that promotions had not been conducted for eight years, and in the interest of justice, ordered the promotion of four candidates based on their qualifications, without monetary relief—This decision is made under Article 142 of the Constitution and is not a precedent—The appeal was allowed, and no costs were awarded. ...
Motor Vehicles Act, 1988, Section 173(1), Section 163A—Petition seeking condonation of delay Tribunal awarded period of limitation in preferring an appeal against a judgment and order of the Motor Accident Claims Tribunal—The court found the reasons provided for the delay insufficient, and it was not satisfied that the appellant was prevented by sufficient cause from filing the appeal within the statutory period—The court cited relevant provisions of the Motor Vehicles Act, which require valid and acceptable reasons for condoning delays—Furthermore, the appellant failed to provide adequate evidence regarding the receipt of compensation—The application for condonation of delay was rejected, and the appeal was dismissed as barred by limitation. ...
Arbitration Act, 1940—Section 30/33—(Now, Arbitration and Conciliation Act, 1996—Section 34)—Road construction contract dispute—Courts must exercise caution when considering whether to set aside an arbitral award—Arbitrator is the final authority on matters of fact, and unless a legal error is evident, interference with the award should be avoided—Court's jurisdiction under Section 30/33 of the Arbitration and Conciliation Act is limited to identifying a "legal error apparent on the face of the award" and does not extend to factual errors—Such a legal error can be found within the award itself or in a document referenced therein—In this case, no facially evident legal error was present in the award, and the damages awarded adhered to legal principles—Trial courts an...
Motor Vehicles Act, 1988—Encompassing Sections 166, 173, and 168—Compensation enhancement case was presented—Involving a bright student—Tribunal partially granted the claim—Awarding Rs. 2,00,000 to the claimants—Deceased, a 22-year-old MBA student—Had a colleague who secured a senior officer appointment with a monthly salary of Rs. 15,200, subject to revision—Tribunal overlooked this crucial evidence in determining compensation. Future prospects, estimated at 40%, were added—Multiplier was applied—Given the deceased's bachelor status, a 50% deduction for personal expenses was made. Consequently—Recalculated compensation for the appellants amounted to Rs. 24,19,240,—Warranting an increase. ...
Motor Accident—Five injuries—Which are permanent in nature—Compensation claim—Tribunal awarded compensation of Rs. 7,21,985/-—First Appeal—High Court awarded compensation over and above Rs. 8,66,787/-—Appeal against award passed by High Court—Determination of—Both Courts below have not granted any amount towards future prospect—Supreme Court accordingly allow an addition of 15% towrds future prospect—In the instant case as dependent family members are at least 4, deduction should have been 1/4th—An amount of Rs. 40,000/- each is awarded to each of four dependents towards loss of consortium—Supreme Court was of the view that amount awarded for loss of estate and loss of funeral expenses is too less and accordingly increase the same to Rs. 15,000/- under both head...
Motor Vehicles Act—Section 166, 173—Central Motor Vehicles Rules, 1989—Rule 15—hitting a parked vehicle—Negligence of deceased or not—Parking lights—Day time or night time—Tribunal awarded compensation to claimants holding sole negligence of Truck Driver—Accident occurred at 7:15 p.m. in the month of May, no one can say on that day whether it was dark or not—If it is presumed, that it was not dark on that day but when the truck was stationed on highway, it was the duty of driver to put stones around stationary truck or to put some signs showing that the said truck is stationed on road—Held, Deceased would not have expected that truck is stationed on highway as there were no signs of stationing of the offending truck and as revealed from police papers—No stubbornness i...
Motor Vehicle Act—Sections 140, 165, 173—Appeal against award—Jurisdiction of tribunal—Liability—Tribunal awarded compensation of Rs.9,85,000 inclusive of no fault liability amount—Tribunal while deciding the application under S.140 of the MV Act, had already considered and dismissed the objection based on its jurisdiction—Ample evidence on record about location and the Careless position of the manhole and its cover—Contention about completing the work one month before the accident does not inspire confidence—Appellant is laible to pay compensation—Held—Impugned award of tribunal upheld. (Para : 2, 9, 17-30) ...
Industrial Disputes Act, 1947—Section 33-C (2)—Appeal against judgment and order passed by High Court—High Court allowed the petition preferred by respondent-Bank and has set aside the order passed by CGIT/Labour—Determination of—Appellant approached Industrial Tribunal by way of an application under Section 33-C (2) of I.D. Act for implementation of award—Order of reinstatement and wages claimed on order of reinstatement—Same were already adjudicated upon—In case of Bombay Chemical Industries v. Deputy Labour Commissioner and Another, (2022) 5 SCC 629, it is observed and held that un-adjudicated claim cannot be subject-matter of proceedings under Section 33-C (2) and in proceeding under Section 33-C (2) the Tribunal can only interpret the award or settlement on which claim is based—Un...
Award—Arbitration and Conciliation Act, 1996—Sections 37 and 34—award—Appellant was liable to pay Rs. 14,49,300/- to respondent—Amount was towards refund of balance security deposit—Which was made by respondent in terms of agreement—Award had stipulated that Rs. 14,49,300/- would carry an interest @ the rate of 18% per annum from date of award, till payment—Appeal—Dismissed—Dispute before Supreme Court—Determination of—In the context of present case, interest would be compensation payable by appellant to respondent—For retention or deprivation of use of money—Therefore, once money paid to respondents, interest as compensation for deprivation of use of money will not arise—Held, that appellant would be liable to pay interest @ the rate of 18% with eff...
Arbitration and Conciliation Act, 1996—Section 34 and 37—Modification of award—Important to note that the court, during proceedings under Section 34 or in an appeal under Section 37, does not possess the authority to modify the award. In such circumstances, the appropriate course of action is to set aside the award and refer the matter back to the arbitrator, as outlined in Section 34(4), with due consideration for the pertinent aspects of the case." ...
Arbitration and Conciliation Act, 1996 — Section 34(4) — Merely because an application is filed under Section 34(4) of the Act by a party, it is not always obligatory on the part of the Court to remit the matter to Arbitral Tribunal. (Para 21) Arbitration and Conciliation Act, 1996 — Section 34 (4) of the Act, can be resorted to record reasons on the finding already given in the award or to fill up the gaps in the reasoning of the award....
Arbitration and Conciliation Act, 1996—Section 34—The appellant challenged an order passed by the Rajasthan Micro and Small Enterprises Facilitation Council—Respondent argued that the appellant had failed to challenge the award in the appropriate forum and had instead filed a belated writ petition—The Supreme Court found that the order was passed contrary to the MSMED Act and the Arbitration and Conciliation Act—Thus, the appeal was allowed, and the order was quashed, but the Council was given the option to initiate arbitration proceedings following proper procedures. ...
Arbitration and Conciliation Act, 1996 “Whether an “award” delivered by an Emergency Arbitrator under the Arbitration Rules of the Singapore International Arbitration Centre can be said to be an order under Section 17 (1) of the Arbitration Act” — Whether an order passed under Section 17(2) of the Arbitration Act in enforcement of the award of an Emergency Arbitrator by a learned Single Judge of the High Court is appealable. ...
Companies Act, 1956 - Sections 397 and 398 - Award of interest - Appeal against Order of NCLAT held that the order of the CLB was not an order in the sense of being an executable order, but merely an order appointing a valuer of the Appellant's shares - What if the company ended up making losses instead of profits, would it then be equitable to award nothing to the appellants? Secondly, the company’s earnings have no direct relation with the valuation of shares which fluctuate in the share market depending on several factors - This Court set aside the order of the NCLAT on reducing the award of interest from 9% to 6%.. ...
Accident case involving charges of rash and negligent driving, the issue at hand was the enhancement of compensation awarded—The appellant had sustained multiple injuries, including seven grievous ones, as per the testimony of an Orthopedic Surgeon. She had undergone two surgeries that left her unable to perform household tasks and dependent on crutches for mobility—Her overall body disability was medically assessed at 32%—However, the Tribunal, in an overly detailed analysis of the expert evidence, assessed the whole body disability at only 15%. The High Court, for reasons that were not adequately explained, determined the whole body disability at 20%—Upon review, it was established that the appellant was entitled to compensation for the loss of future earnings based on her whole body disability of 32%, as indicat...
Accident case involving charges of rash and negligent driving, the issue at hand was the enhancement of compensation awarded—The appellant had sustained multiple injuries, including seven grievous ones, as per the testimony of an Orthopedic Surgeon. She had undergone two surgeries that left her unable to perform household tasks and dependent on crutches for mobility—Her overall body disability was medically assessed at 32%—However, the Tribunal, in an overly detailed analysis of the expert evidence, assessed the whole body disability at only 15%. The High Court, for reasons that were not adequately explained, determined the whole body disability at 20%—Upon review, it was established that the appellant was entitled to compensation for the loss of future earnings based on her whole body disability of 32%, as indicat...
Arbitration and Conciliation Act of 1996 — Sections 34 and 37—Specifically in case of any failure by the Appellants to make payments as awarded, the entire award amount becomes enforceable. Nevertheless, the Appellants are granted a two-month period to arrange for compliance before enforcement. Once this two-month period elapses, the entire decree becomes immediately executable. The appeal is resolved accordingly. ...
Arbitration and Conciliation Act, 1940—Section 29—Interest Act, 1978—Section 3, Section 4—Discussing various court judgments and principles related to the award of interest in arbitration cases—It explores the interpretation of contractual clauses that may either permit or prohibit the payment of interest to contractors during arbitration proceedings—Key points and conclusions from the passage include: 1. Reference to several court decisions related to the Arbitration and Conciliation Act, 1996, and the authority of arbitrators to grant interest in arbitration cases. 2. Emphasis on Section 31(7)(a) of the 1996 Act, which binds arbitrators to respect the terms of the contract, especially regarding the award of interest. 3. Citations of specific judgments such as the Engineers-De-Space-Age case a...
Arbitration Act, 1940—Sections 17 and 30—Award of interest pendente lite—Supreme Court allowed appeals against the Gujarat High Court's judgment—The dispute arose from a contract between M/s Raveechee and Co. and the Union of India—The High Court partly allowed the Union of India's appeal, quashing the Arbitrators' order regarding Claim No. 12, which pertained to interest—The Arbitrators had awarded interest pendente lite, and the Union of India argued that it was barred by Clause 16(3) of the contract—The Supreme Court held that the clause did not restrict the arbitrator's power to award interest pendente lite and reinstated the Arbitrators' award. ...
Constitution of India, 1950—Article 133—It was noted that all the respondents/workmen had been working since the award was passed by the Labour Court—If the State had concerns about sufficient work for accommodating the respondents, it was incumbent upon them to take appropriate steps in accordance with the procedures prescribed under the Industrial Disputes Act—This was without prejudice to any other legal remedies available to them—Additionally, a coordinate Bench of the Court had already addressed a similar issue in a previous order dated January 3, 2017, in Civil Appeal No. 34 of 2017, where it declined to interfere with the award passed by the Labour Court—As a result, the appeals were dismissed, and pending applications were disposed of. No costs were awarded. ...
Award—The basic prayer in the interlocutory applications is that the State of Kerala should not utilize the water more than that has been allocated to it by the award under challenge and also to stop certain constructions—Having heard learned counsel for the State of Tamil Nadu and the State of Kerala, Court think it is seemly that the State of Kerala shall send a communication within a fortnight stating what it has expressed before the Court ...
Award of licence—In a case involving the award of licenses and the use of 2G Spectrum, the Central Bureau of Investigation mentioned the names of the accused in their affidavit—The Court recognized that restraining the use of 2G Spectrum could negatively affect subscribers and thus directed the Ministry of Communications & Information Technology to devise a provisional transfer mechanism for subscribers of 2G Spectrum licenses originally granted to M/s. Aircel Telecommunications if needed due to the proposed order. ...
Arbitration Act, 1940, Section 30/33 — Arbitration — Award — Objections against — Legal misconduct —Held that an award can be set aside only on the grounds specified in sub — clause (a) (b) and (c) of Section 30 of 1940 Act and on no other grounds — Grounds such as inadequacy of reasons in support of an award, error committed by the arbitrator on facts, alternate or/and more plausible view could be taken then what is taken by the arbitrator, improper appreciation of evidence done by the arbitrator in recording any finding etc. are not the grounds on which any award much less a reasoned award can be set aside — High Court acted like an appellate Court and virtually treated as if the appeal arose directly against the award and then proceeded to examine all factual findings of the arb...
Arbitration Act, 1940, Section 3, 28 and 30 — Arbitration — Award — Challenge as to — Whether the appointment of the Arbitrators was in terms of the relevant Clauses of the Contract? — A copy of letter dated 20.03.1992 addressed to NTPC by appellant invoking Arbitration was admittedly forwarded to and received by NPTC — Neither of them took appropriate and required steps in the matter within 60 days as contemplated by Clause 26.6.1 of the Contract — Step taken by the appellant to approach Institution of Engineers (India) requesting its President to appoint the arbitrator in terms of said Clause — A telegram was sent on 24.08.1992 on behalf of NPTC requesting the President, Institution of Engineers (India) to keep the action regarding appointment of arbitrator on their behalf in abeyance &mda...
Companies Act, 2013—Section 366—Award of tender—State of Telangana State Mineral Development Corporation Limited issued a notice inviting tenders (NIT)—Respondent No. 1, K.V.V.S.N—Associates, submitted a bid but was deemed ineligible by the third respondent—The NIT explicitly stated that only individuals or companies were eligible to participate in the tender—Respondent No. 1 was a firm, not an individual or a company, making its bid rightly rejected by the third respondent—The court found that the High Court's decision should be overturned, and the appeal was allowed. ...
Constitution of India, 1950—Article 136, Article 356—Award of amount—The appeals, filed by special leave, are directed against certain judgments and orders—The court has directed that an additional 50% of the amount shall be awarded to the respondents—This additional 50% amount shall be calculated based on the total amount that has been paid or is payable to the respondents in accordance with the Award. ...
Arbitration Act, 1940, Section 3, 2(c), 29, 41 — Arbitration — Pendente Lite Interest — Award of — Jurisdiction of Arbitrator — Whether an Arbitrator has the power to award pendente lite interest in case contract bars the same in a case covered by Act — Held that if contract expressly bars award of interest pendente lite, the same cannot be awarded by the Arbitrator — Made clear that the bar to award interest on delayed payment by itself will not be readily inferred as express bar to award interest pendente lite by the Arbitral Tribunal, as ouster of power of Arbitrator has to be considered on various relevant aspects. (Para 34) ...
Motor Vehicles Act, 1988 (MV) - Section 166 ...
Land Acquisition Act, 1894 - Section 11- A—Limitation Act, 1963 - Section 12 - Acquisition of land—Award - Limitation—Supreme Court clarified that Section 11-A of the Land Acquisition Act, 1894, does not provide for the exclusion of time taken to obtain a certified copy of a judgment or order related to stay orders. Additionally, Section 12 of the Limitation Act, 1963, is not applicable to the making of an award under the Land Acquisition Act. Since there was no enabling provision in Section 11-A of the Land Acquisition Act or the Limitation Act to exclude time, the Court held that there was no basis for borrowing principles from Section 12 of the Limitation Act for computing the period or determining the validity of an award under Section 11-A. As a result, the High Court was justified in ruling that the award was inval...
Motor Vehicles Act, 1988—Section 140, Section 140(2), Section 141, Section 141(2), Section 141(3), Section 147, Section 147(2), Section 149, Section 149(2), Section 158, Section 158(6), Section 163A, Section 165, Section 165(1), Section 166, Section 166(2), Section 168, Section 173, Section 174—Issue pertains to whether an order passed under Section 140, enforceable under Section 168, qualifies as an 'award' and is appealable under Section 173—The argument posits that the right under Section 140 can only be realized through Section 168 as an award, making it appealable—The court emphasizes the meaning and scope of an 'award,' asserting that a tribunal's decision on issues, including objections by an insurance company, attaining finality constitutes an award under Section 173—Therefore, obj...
Arbitration Act, 1940—Section 30—Award—Setting aside of—High Court of Judicature at Bombay's decision to dismiss the appellants' appeals against the judgment and order of the learned Single Judge—The Single Judge set aside awards made by arbitrators in two disputes between the parties—The respondent sought to set aside the awards, claiming he missed a hearing due to a wrongly noted date—The arbitrators proceeded with the awards, and the High Court, agreeing with the Single Judge, set aside the awards, granting the respondent another opportunity to present evidence—The Supreme Court held that the High Court exceeded its jurisdiction under Section 30 of the Arbitration Act, as the arbitrators' decision on granting an adjournment is not a ground for setting aside an award—The ...
Arbitration Act, 1940—Section 20O—Objections—Award—High Court's direction on June 16, 1988, referring disputes for arbitration under Clause XX included matters expressly excluded from arbitration—The arbitrator, by addressing these excluded disputes such as transit, demurrage, and wharfage charges, exceeded their jurisdiction—This contravened the established principle, as affirmed by the court in the Rajasthan State Mines and Minerals Ltd—case, that arbitration rulings on excluded matters amount to an excess of jurisdiction—The specific prohibition on raising claims related to transit, demurrage, and wharfage charges rendered the arbitrator's award on these issues as exceeding the prescribed jurisdiction. ...
Arbitration and Conciliation Act, 1996—Section 10, Section 16, Section 30, Section 31—High Court's Appellate Bench affirmed an arbitral award on only two grounds, overlooking other grounds on which the single Judge had set aside the award—The Appellate Bench considered objections related to Section 10 of the Act and the arbitrators' failure to provide reasons, but omitted to address additional grounds raised by the single Judge—In the interest of justice, the Supreme Court remanded the matter to the High Court for a comprehensive review of all grounds on which the award was initially invalidated—This ensures a thorough examination of the issues and prevents the appellant from being deprived of the High Court's perspective on all relevant grounds. ...
Constitution of India, 1950—Article 136—Award —Arbitration clause, specifically Clause 70, clearly indicates the intention to encompass all disputes between the parties, excluding excepted matters—The arbitrator, as per the appointment document, was mandated to decide disputes arising between the contracting parties—The contractor's claim, including future periods during the contract's continuation, falls within the arbitration clause's ambit—The overarching aim of arbitration is comprehensive dispute resolution to prevent further litigation—The High Court's stance lacks legal justification and is untenable—The court emphasizes the necessity to honor the arbitration clause's broad language and rejects any unwarranted restriction on its scope. ...
Arbitration Act, 1940—Section 30—Contract for the supply of hard coke, the inclusion of a price escalation clause initially allowed the contractor to claim a higher price for any escalation after submitting the tender—This clause was subsequently revised, stating that price escalation would only be applicable in the case of statutory enhancement in the price of the commodity—The arbitrator took a plausible view that the question of the enhanced price of hard coke was still in the course of negotiations, and no manifest error was evident in this determination—The court held that within the statutory limitations laid down in Section 30 of the Arbitration and Conciliation Act, it was not open for the court to interfere with the award—The award was passed, and the court made it a rule, recognizing the arbit...
Arbitration Act, 1940—Section 30, Section 33—Legal heirs of Chiranjilal Srilal Goenka, who died during an appeal concerning the confiscation of gold, various claimants emerged, including a daughter under a will and an adopted son—An arbitrator was appointed to settle the matter—The arbitrator's award, favoring the adopted son, was challenged—The court held that a letter presented as an adoption agreement did not restrict the adoptive father's right to dispose of his property by will and did not require registration—Thus, the arbitrator's decision favoring the adopted son was deemed erroneous, and the will executed by Chiranjilal was upheld, making the daughter the legal heir. ...
Arbitration And Conciliation Act, 1996—Section 34—Award—Interference with - National Bank for Agriculture and Rural Development, Bombay, regarding the sale and purchase of office accommodation—The disagreement centers on the cost and rate of the basement portion constructed for car parking in lieu of the initially agreed stilt—The Arbitrator awarded reimbursement at the rate of Rs. 400/- per sq.ft., with 18% interest—The Single Judge of the Madras High Court upheld the claim for the basement area but reduced the rate to Rs. 150/- per sq.ft., with interest from the judgment date—The Division Bench further modified the rate to Rs. 250/- per sq.ft. and the interest to 12% p.a—The Supreme Court partially allowed the appeals, awarding Rs. 250/- per sq.ft. for the basement area and maintainin...
Industrial Disputes Act, 1947—Section—17-B—Termination of the service—Award that deemed the dismissal of the respondent-workman as illegal, directing reinstatement with continuity of service, full back wages, and other benefits—The petitioner filed a writ petition against this award—The High Court, in its judgment, acknowledged the Tribunal's validation of the domestic inquiry leading to the workman's termination but independently concluded that the charges were unproven—Surprisingly, the High Court avoided examining the Tribunal's findings and based its decision on the non-compliance of an order under Section 17-B of the Industrial Disputes Act, 1947—The Supreme Court set aside the High Court's order, remanding the matter for a fresh consideration, emphasizing the need for a...
Arbitration Act, 1940—Section 30—Award—Setting aside—The Arbitrator made findings based on a closer scrutiny of evidence, and reappraisal of evidence is impermissible under Section 30—Courts cannot indict an award on factual issues—Contract Act, 1872—Section 55—Time essence of contract—Reciprocal and mutual obligations—Strict adherence to the time schedule not necessary when obligations are mutual and inter-dependent—Performance of contract—No presumption of extension or acceptance of a renewed date—Parties knowingly abandoning original terms—Courts cannot fix a date for performance; abandonment or naming a specific future date required—In summary, the Arbitrator's findings based on evidence scrutiny are not grounds for setting aside an award&mda...
Civil Procedure Code, 1908 (CPC)—Section 34—Arbitration Act, 1940, is discussed in a case where an arbitrator awarded interest in a commercial transaction—The arbitrator had the authority to grant pendente lite and future interest, with the Interest Act, 1978, applying to arbitrators as well—The award of interest at a rate of 10% per annum from the date of reference till realization was considered proper under Section 34 of the Code of Civil Procedure, especially when the liability arose from a commercial transaction—Another aspect involved an application for setting aside the award on the grounds that it went beyond the terms of the contract—The Court held that the claims made by the contractor were within the terms of the contract, involving measurements by a Local Commissioner—However, certain ...
Arbitration Act, 1940—Section 30—Award—Setting aside of —An agreement with Indian Rare Earths Ltd—for the supply of raw sand—Disputes arose, and the matter went to arbitration—The arbitrator awarded a sum in favor of the appellant, which was later challenged in the High Court—The High Court set aside the award, citing legal misconduct by the arbitrator—The appellant argued that the award was non-speaking, and the High Court erred in examining the facts—However, the Supreme Court held that the findings of the arbitrator were part of the award—It determined that the amount awarded under certain claims exceeded the scope of the agreement and was contrary to the findings—Consequently, the appeal was dismissed, upholding the High Court's decision on the grounds of...
Arbitration Act, 1940—Section 30—Award—Setting aside of—Agreement, leading to disputes settled through arbitration—The arbitrator's non-speaking award was challenged by the respondents in the High Court, alleging legal misconduct—The High Court set aside the award, citing lack of reasons and variance in the appellants' revised claim—The Supreme Court, emphasizing the arbitrator's discretion to issue non-speaking awards, rejected claims of legal misconduct—It highlighted that both parties presented evidence, the appellants reduced their claim with no prejudice to the respondents, and the award, being non-speaking, need not detail considerations—The court reinstated the trial court's decision, directing a decree in line with the arbitrator's award, and awarded additio...
Industrial Disputes Act, 1947—Section 11A—Award of back wages—Labour Court, through its Award, found that the charges against the appellant were not proven—The Labour Court directed the reinstatement of the appellant with continuity of service and granted back wages—The employer challenged this decision in the High Court—The Single Judge, without re-appraising the evidence, focused only on the punishment aspect and set aside the order of dismissal, directing reinstatement but reducing the back wages—The Division Bench dismissed the writ appeal on limitation grounds but upheld the decision on merits—The Supreme Court, however, disagreed with the approach of the Single Judge and the Division Bench, stating that once the charges were not established, it was not within the court's jurisdicti...
Arbitration Act, 1940—Section 14—Award—When complete—Parties, leading to arbitration—The Arbitrator issued an interim award on November 26, 1992, and a final award on January 28, 1994—The appellant sought to make the awards the rule of the court—The trial court held that the interim award should be made the rule of the court for Item No. 1, excluding it from the final award—However, the High Court set aside the trial court's decision, stating that the interim award was superseded by the final award—The Supreme Court, after examining the relevant legal provisions, disagreed with the High Court—It held that an award becomes final as soon as it is made and signed by the Arbitrator—The court emphasized that signing gives legal effect to the award, and notice to parties can ...
Constitution of India, 1950—Article 226—Award of the DSc degree, which was examined by a Board of Examiners appointed by the University—While two examiners recommended granting the degree, the third dissented, leading the University to issue a letter stating that no further action could be taken due to the lack of unanimity—The respondent filed a writ petition seeking to quash the letter and mandamus directing the University to reconsider and grant the degree—The High Court allowed the writ petition, emphasizing the respondent's supposed right to the degree—The Supreme Court set aside the High Court's order, clarifying that conferment of the degree is a matter of privilege, not a right—It directed the University's Syndicate to examine the matter without influence from the High Court...
Arbitration Act, 1940—Section 30—Award—Setting aside of—Union of India filed additional documents on the last day of the hearing without providing an opportunity for the petitioner to contest; secondly, the arbitrator, despite no oral evidence, claimed to have heard evidence in the award; and thirdly, the arbitrator's brief hearing allegedly violated principles of natural justice—The High Court dismissed the objections, finding no merit—The Supreme Court concurs, rejecting each contention—On the first, it clarifies that the documents were filed earlier, and the arbitrator considered them appropriately—On the second, it interprets the term "evidence" in the award to include documents, affirming the application of the arbitrator's mind—On the third, the Court deems the ...
Land Acquisition Act, 1894—Section 11(1) proviso—Commissioner's power to reduce compensation under proviso to Section 11 of Land Acquisition Act affirmed—However, whether Commissioner is competent authority to reduce compensation for multiple claimants exceeding Rs—5 lacs referred back to High Court for consideration—No costs awarded. ...
Arbitration Act, 1940—Section—30—Special Leave Petitions were granted leave, and by mutual agreement of the parties' advocates, the appeals were heard and settled together—The appeals concern disputes between the State of Bihar and a contractor, with the State challenging the orders of the Subordinate Judge, Chaibasa, and the High Court of Patna, which upheld arbitration awards favoring the contractor—The State argued two main points: first, that the awards were flawed due to an alleged breach of contract clause and second, that the arbitrator exceeded jurisdiction by awarding interest contrary to contract terms—However, upon review, the Court found that both contentions lacked merit—The Court noted that the arbitrator had considered all relevant aspects and concluded that the awards were vali...
Arbitration Act, 1940—Sections 30 and 33—Construction of contract—Award contrary to contract—Express stipulation in contract prohibiting escalation of construction costs after original contract period—Arbitrators awarding amount for extra expenses incurred after contract expiry—Arbitrators acting contrary to specific stipulation—Border-line case where either view is possible—Court inclined to uphold award within letter of law, despite absence of formal contract and terms inferred from tender notice and correspondence. ...
CONSTITUTION OF INDIA : Art.18(1), Art.32, Art.226, Art.139(a)(1), Art.14, Art.15(a)(j)—The case addressed the constitutional validity of National Awards under Article 18(1) of the Constitution of India, concerning the abolition of titles—The Supreme Court held that Bharat Ratna, Padma Vibhushan, Padma Bhushan, and Padma Shri do not constitute "titles" under Article 18(1)—However, recipients must refrain from using these awards as prefixes or suffixes to their names, and misuse could result in forfeiture as per specified regulations—The Court critiqued the broad and potentially exploitable guidelines for award selection, recommending stricter criteria and limitations on the number of awards to maintain their prestige—It emphasized the need for a high-level committee to review and improve award selec...
Civil Procedure Code, 1908 (CPC)—Section 47—Effect of award as rule of the Court—The Court's role is not to adjudicate a dispute between parties but to endorse the award, rendering it enforceable through judicial mechanisms—The award does not assimilate into the court's decision; rather, the court's judgment merely affirms the award's enforceability—When a Special Arbitration Tribunal's award is ratified by the court, it obtains the court's endorsement for enforcement—This process does not transform the award into a court decision—Even if superior courts uphold such judgments, the awards remain distinct from court decisions—Hence, when courts make awards 'Rules of Court' for enforcement, they do not absorb into court judgments, retaining their status as distin...
Land Acquisition Act, 1894—Section 11, Section 11A, Section 4(1)—Validity of an award made by the Land Acquisition Officer within the stipulated timeframe—The High Court concluded that an award was made by the Collector on December 20, 1992, based on a proposed award submitted for prior approval—However, the Supreme Court held that since prior approval was not obtained before the deadline of December 21, 1992, no valid award was made within the statutory timeframe—Therefore, the entire land acquisition proceedings lapsed as per Section 11A of the Land Acquisition Act, 1894—The Court allowed the review petition, set aside the High Court's order, and dismissed the writ petition—The appeal by the State of U.P. was allowed, while related Special Leave Petitions were dismissed. ...
Evidence Act, 1872—Section 115 —Appellant school management dismissed a teacher after an enquiry conducted by a committee other than the school committee, as requested by the respondent—The Joint Director set aside the dismissal, citing jurisdictional concerns—The High Court's single judge remanded for considering other contentions, but the Division Bench overturned this, citing procedural rules—The Supreme Court ruled that the respondent, by participating without objection, was estopped from challenging jurisdiction—The form relied upon by the Division Bench could be modified by consent—The respondent's letter didn't explicitly object to the enquiry committee—The appeal was allowed, setting aside the Division Bench's judgment and upholding the single judge's decisio...
Industrial Disputes Act, 1947—Section 10, Section 12—Punjab and Haryana High Court's dismissal of a Letters Patent appeal against a Single Judge's judgment, which quashed an award in favor of appellant Kanshi Ram Verma by the Labour Court, Patiala. Verma was appointed temporarily as a Sectional Officer by the Municipal Committee, Mansa, but his services were terminated allegedly for failing to submit required certificates and affidavits—The Labour Court found his termination unjustified, directing reinstatement and compensation—However, the High Court quashed this award, asserting non-compliance with employment requisites—The Supreme Court noted the Single Judge's error in re-evaluating factual findings of the Labour Court, which had accepted Verma's compliance based on unchallenged evidence&m...
Arbitration Act, 1940—Section 30.Government of India for construction work, which contained an arbitration clause—Disputes arose, and the matter was referred to an arbitrator who awarded a sum of Rs. 1,07,631/5 to the respondent, including Rs. 6,000 as a security deposit—The respondent challenged the award, claiming it was vague and uncertain—The High Court set aside the award on these grounds—However, the Supreme Court ruled that the award was clear and addressed all disputes submitted to the arbitrator—It was noted that the Rs. 6,000 for the security deposit was awarded under a misapprehension, as the respondent had already received it, but this error was separable and did not invalidate the entire award—The appeal was allowed, the High Court's order was set aside, and the original award by ...
Land Acquisition Act, 1894 - Sections 3(b), 20 and 21 —Person interested" includes anyone with an interest in the compensation, not just those claiming an interest in the land itself— Such individuals are entitled to be heard before the compensation is apportioned— Sections 18 and 54 of the Act outline the process for appeals and revisions regarding the award and its distribution—An order denying a person’s request to be included as a party in proceedings, despite their interest in the compensation, cannot be appealed directly— Instead, a revision is permissible to address such issues— This ensures that all parties with a legitimate interest in the compensation are given an opportunity to be heard and have their claims properly considered ...
Civil Procedure Code, 1908 (CPC) - Section 34—Claim is not required; an arbitrator can issue a lump-sum award encompassing multiple claims— Such an award is not subject to judicial review except on specific grounds outlined in Section 30— The arbitrator has the authority to award interest, including future interest, if the question of interest was part of the arbitration reference— In this case, where all disputes, including interest, were referred to the arbitrator, the arbitrator had jurisdiction to grant interest from the date of the award to the date of the decree— Section 34 of the CPC, although not directly applicable to arbitration, informs the principle for awarding interest— Courts cannot review the arbitrator's decision on the basis of alleged legal errors unless such errors are apparent o...