BHAGHEERATHA ENGINEERING LTD. Vs. STATE OF KERALA

JUDGEMENT

(1.) Leave granted.

(2.) The present appeal calls in question the correctness of the judgment dtd. 7/1/2025 passed by the Division Bench of the High Court of Kerala at Ernakulam in Arbitration Appeal No. 56/2012. By the said judgment, the Division Bench of the High Court upheld the order of the District Judge, Thiruvananthapuram, dtd. 22/6/2010 in O.P. (Arb.) No.238 of 2006, al beit, on different grounds. The District Judge had set aside the award of the Arbitrator as being beyond the scope of reference and against the terms and conditions of the contract and restored the decision of the Adjudicator. The Adjudicator had, by his order of 14/8/2004, decided four disputes and held in favour of the appellant insofar as dispute Nos. 1 and 3 were concerned and against the appellant in relation to dispute Nos. 2 and 4.

(3.) The principal reason assigned by the High Court was that the Arbitral Tribunal was appointed at the request of the respondent-State to adjudicate on dispute no. (1) alone and the appellant never intended to raise any dispute regarding dispute nos. (2) to (4) by issuing a separate notice under Sec. 21 of the Arbitration and Conciliation Act, 1996 [for short "the A&C Act"]. The reasoning of the High Court is set out hereinbelow:-