HARYANA TELECOM LTD Vs. BHARAT SANCHAR NIGAM LTD

JUDGEMENT

(1.) THREE Arbitral Awards dated June 19, 2007 passed by the same sole arbitrator have been set aside by the learned Single Judge vide impugned order dated March 12, 2010. Three petitions filed under Section 34 of the Arbitration and Conciliation Act, 1996 have been allowed. Needless to state, the respondent BSNL was the petitioner before the learned Single Judge.

(2.) LIQUIDATED damages levied by the respondent were set aside by the learned Arbitrator. The amount deducted by the respondent from out of the sum payable to the appellant under the three contracts has been directed to be paid over under the award together with interest @ 12% per annum. As a result of the three awards being set aside the respondent would have to make no refund.

(3.) THE learned Arbitrator has held that the levy and recovery thereof by BSNL was illegal. The learned Arbitrator has held that as per the clause, notwithstanding its caption, the levy was penal i.e. in terroram. The learned Arbitrator has further held that not being in the nature of a pre -estimate of damages, since the alleged loss was not reflected in the account books, the evidence relating to the alleged loss had to be overlooked.