JAIPRAKASH ASSOCIATES LTD Vs. THDC INDIA LTD

JUDGEMENT

(1.) Majority award dated October 10, 2010 dealt with two claims and if allowed, interest thereon. And as against Rs. 38,75,887/- prayed for under claim No.1 for reimbursement on account of fluctuations in foreign exchange rates in respect of construction equipment Rs. 18,59,377/- has been allowed, and under claim No.2 in sum of Rs. 35,17,760/- pertaining to supply of Micro Silica sum awarded is Rs. 6,13,160/-; and on the two amounts interest awarded is @ 10% per annum from date when arbitration was invoked i.e. October 9, 2007, till 60 days after the award and thereafter @ 18% per annum till when payment is made.

(2.) Objections filed under Section 34 of the Arbitration and Conciliation Act 1996 by Tehri Hydro Development Corporation Ltd., now known as THDC India Ltd. concerned only the interest awarded by the learned Majority Arbitrators. Vide impugned order dated November 15, 2011, the objection has succeeded resulting in the majority award being set aside limited to the interest being awarded.

(3.) Two clauses under the contract between the parties, being Clause No.50 and Clause No.51 under the General Condition of Contract were the subject matter of consideration before the learned Arbitrators as also the learned Single Judge. The two clauses reads as under:-