CHEMICALS AND ALLIED INDUSTRIES Vs. NATIONAL FERTILIZERS LTD

JUDGEMENT

(1.) THIS appeal challenges the judgment of the learned Single Judge dated 25th august 1998 by which he had dismissed the objections filed by the appellant herein, who was respondent No. 1 before the learned Single Judge.

(2.) BEFORE the learned Single Judge three plea were raised by the appellant. The first plea was in respect of the maintainability of the counter claim raised by the respondent herein. The learned Single Judge found that before the Arbitrator, the plea of maintainability of the counter claim was not raised and the appellant participated in the arbitration proceedings without protest and had challenged the award on this score only after the award went against the appellant. The learned single Judge had relied upon the judgment of the Hon'ble Supreme Court in the case of Prasun Roy v. The Calcutta Metropolitan Development Authority and anr. , AIR 1988 SC 205 to hold that long participation in such proceedings amounted to acquiescence and precluded the parties from contending that the proceedings were conducted without jurisdiction. Accordingly, the learned Single judge rejected this objection of the appellant and in our view rightly so.

(3.) THE second plea of the appellant is that the arbitrator exceeded his jurisdiction and acted contrary to the contract by allowing adjustment of rs. 7,79,432. 60 made by the respondent towards penalty on the basis of formula which was not part of the contract.