MAHANAGAR TELEPHONE NIGAM LIMITED Vs. CARRYCON INDIA LIMITED

JUDGEMENT

(1.) Introduction

(2.) The dispute between the parties related to the price payable by MTNL for the work of laying of cables through Trenchless Technology. Whilst, the respondent (hereafter "Carrycon") claimed that MTNL was liable to pay for the said work at the rate of Rs.412/- per meter as agreed under the Agreement, MTNL disputed the same. According to MTNL, the Agreement stood novated in so far as the rates payable for the work and the same was payable at the rate of Rs.230/- per meter. By the impugned award, the Arbitral Tribunal has accepted Carrycon's claim that the Agreement was not novated and it would be entitled to recover the differential amount (being the difference between the amount paid at the rate of Rs.230/- per meter and as computed on the basis of Rs.412/- per meter). Accordingly, the Arbitral Tribunal has awarded a sum of Rs.2, 36, 11, 929.26/- (Rs.2, 17, 81, 929.26/- on account of the balance differential amount and Rs.18, 30, 000/- on account of the security amount). The Arbitral Tribunal has awarded a sum of Rs.2, 06, 10, 3096/- along with pendente lite interest at the rate of 10% per annum from 10.04.2007 till the date of the impugned award. The Arbitral Tribunal has also awarded post award interest at the rate of 12% per annum on the awarded amount from the date of the award till the payment.

(3.) The controversy involved in the present petition relates to Carrycon's claim for the balance differential amount in respect of the downward revised rates from Rs.412/- to Rs.230/- per meter for the work of laying of cables through Trenchless Technology.