WORLD MEDIA LTD. Vs. PRASAR BHARTI

JUDGEMENT

(1.) By this petition, the petitioner has assailed an interim award passed by learned arbitrator based on the admissions of petitioner as available on record.

(2.) The claim of respondent and the counter claim of petitioner are subject matter of arbitration before the arbitrator. During arbitration proceedings, respondent prayed for an interim award on the basis of letter dated 8th March 2001 wherein the petitioner had categorically admitted its liability of Rs. 83,83,157/ - to respondent under the contract in response to a demand of balance due amount by respondent which was much higher than Rs. 83,83,157/ -. Despite admitting this liability, the petitioner neither paid this amount nor paid other amount and thus disputes arose between the parties and referred to the arbitrator.

(3.) It is submitted by counsel for petitioner that the learned arbitrator wrongly passed an interim award presuming that there was an arbitration agreement. There was no arbitration agreement between the parties. The other objection taken by the petitioner is that even if it is believed that there was an arbitration agreement, the matter referred to the arbitrator was beyond the scope and ambit of arbitration agreement as the contract in question was not covered by the arbitration agreement. It is also submitted that grant of 18% interest by the arbitrator was quite exorbitant and such an exorbitant rate of interest could not have been allowed.