ATLANTA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The appellant-claimant has preferred this appeal against the judgment and order dated 20th July, 2010 passed by the Division Bench of the High Court of Madras partly allowing the appeal preferred by the respondent-Union of India under Section 39 of the Arbitration Act (In short '1940 Act'), 1940 and interfering with the order dated 19th January, 2009 passed by the learned Single Judge in O.P No. 663 of 1999, a petition filed by the respondent-Union of India under Sections 30 and 33 of the 1940 Act against the arbitral Award dated 24th June, 1999. Vide judgment date petition filed by the respondent-Union of India and had upheld the Award. The Division Bench of the High Court has, however, set aside the amount awarded by the learned Sole Arbitrator in favour of the appellant herein towards idle hire charges and value of the tools and machineries. Further, the findings returned in the Award relating to extension of time and illegal termination of the contract by the respondent-Union of India in favour of the appellant-claimant were also set aside. On the remaining issues, the order of the learned Single Judge was duly confirmed and the decree upheld.

(2.) A conspectus of the facts of the case, relevant for disposing of the present appeal, are as follows:

(3.) Aggrieved by the aforesaid termination order, the appellant- claimant invoked the Arbitration Clause in the contract executed by the parties and a Sole Arbitrator was appointed to adjudicate the disputes between them. Several claims were raised by the appellant-claimant before the learned Sole Arbitrator. The respondent-Union of India also raised counter claims. The learned Sole Arbitrator framed as many as 33 issues and on evaluating the evidence and hearing the parties pronounced a detailed Award dated 24th June, 1999, running into 506 pages, wherein a sum of Rs. 25,96,87,442.89p[Rupees Twenty five crores ninety six lakhs eighty seven thousand four hundred forty two and eighty nine paise] was awarded in favour of the appellant-claimant, inclusive of interest upto 31st May, 1999. Further, future interest was directed to be paid by the respondent-Union of India from 1st June, 1999 at the rate of 18% per annum on the principal amount of Rs. 14,12,50,907.55p.[Rupees Fourteen crores twelve lakhs fifty thousand nine hundred and seven and fifty paise], till realization. As regards the counter-claim of the respondent-Union of India, the learned Sole Arbitrator awarded a sum of Rs. 1,42,255/-[Rupees One lakh forty two thousand two hundred and fifty five] in its favour in respect of Claim No. 6 along with future interest.