INDIRA GANDHI NATIONAL OPEN UNIVERSITY Vs. APTECH LTD.

JUDGEMENT

(1.) THIS petition under Section 34 of the Arbitration and Conciliation Act, 1996 challenges the Award dated 26.12.01 passed by the sole Arbitrator deciding the disputes between the Petitioner University, which promotes distance learning, and the respondent, which provided instructions in computer courses on behalf of the petitioner.

(2.) THE only issue which was urged before this Court, was with regard to wrongfully awarding of the claim for alleged entitlement for higher fees, as awarded by the Arbitrator to the respondent, on the finding that since the petitioner University had raised its fees for the courses, the respondent also became entitled to higher fees. The challenge is laid to the Award on this aspect as the enhancement was subsequent to the commencement of an existing binding contract between the petitioner and the respondent which provided for lesser fees and which it is urged was the binding document between the parties and hence the lesser fees as provided in the same were payable. In other words, the issue was that whether the original contract dated 18.10.1997 stands novated and whether the respondent because of this novation is entitled to claim from the petitioner a large share of the fees which were charged by the petitioner from the students.

(3.) IN this case, on the conclusion of the arguments, I must admit that, I was in a dilemma, because, on one basis it appeared that equity was in favour of the respondent, inasmuch as, why should not the petitioner share higher fees with the respondent when it in fact had received higher fees for the course/instructions which is imparted by the respondent. On deeper analysis, I have however come to the conclusion, that once the legal position is otherwise, equity cannot tilt the scales so as to overlook and breach the provisions of law, as contained in the Contract Act, 1872.