State of Orissa Vs. Samantary Constn. Pvt. Ltd. & Anr.
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Head Note
The Arbitration and Conciliation Act, 1996 - Section 34
Arbitral Award - Challenge as to - Award of the Arbitrator may not be interfered with on the ground that the same was erroneous or on the ground that a different view could be taken on merits of the controversy - In considering an objection to the award, the Court does not sit in appeal over the decision on merits - However, patent error or perversity could certainly provide basis for interference.
The Arbitration and Conciliation Act, 1996 - Section 34
Arbitration Award - Challenge as to - As per invoice of purchase of the excavator, the price was Rs.27,34,134.75 - In respect of the said machinery, claim of the Contractor is Rs.44,77,525/- only upto 31st October, 1989 out of the total claim of Rs.68,44,332/- -Held that the claim could not be upheld beyond the price even if depreciation was not considered - On that basis total claim under Item No.18, on the date of the seizure could not exceed Rs.50 lakhs which appears to be the price of the machinery - Taking an overall view including the interest component upto the date of award (as the interest has been awarded only from the date of award) claim of the Contractor could be assessed at Rs. 1 crore 25 lakhs - Though Courts are not to substitute their opinion for that of the Arbitrator but since this part of the Award is outrightly perverse and not based on application of minds, the award in respect of Item No.18 modified to Rs.1 crore 25 lakhs as on the date of the award instead of Rs.3 crores - Subject to this modification, the award is upheld in all other respects.
Topic(s)-Arbitration - Award - Award partially modified