VOLTAS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) IA 1895/00 (Under Sections 30 and 33 of Indian Arbitration Act, 1940) in CS(OS) 2383-A/99 The dispute between the parties is now more than 30 years old arising from a contract for supply entered into by the petitioner with the respondent, Union of India. Supplies were undisputedly made and the dispute relates to the balance amount claimed by the petitioner.

(2.) The agreement contained a standard arbitration clause and thus the dispute was referred to an Arbitrator appointed by the Union of India. The earlier arbitration proceedings resulted in a judgment setting aside the Award and the matter being remanded back for arbitration. In view thereof, in terms of the letter dated 19.2.1999, Smt.Shail Goel, Additional Legal Advisor to the Government of India, Ministry of Law and Justice and Company Affairs, New Delhi was appointed as a new Arbitrator, who has made made and published her Award dated 2.7.1999. The respondent has once again filed objections to the Award.

(3.) The dispute is limited since there is only one principal claim apart from the claim for interest. The claim arises from clause 19(b) of the contract, which reads as under:-