VIPIN K S Vs. GENERAL MANAGER,SOUTHERN RAILWAY

JUDGEMENT

(1.) The scope and ambit of the provision contained in Section 26 of the Arbitration and Conciliation (Amendment) Act, 2015 (hereinafter referred to as 'the Amendment Act'), Act 3 of 2016, arise for consideration in this appeal.

(2.) The Southern Railway (hereinafter referred to as 'the Railway') granted to the appellant (hereinafter referred to as 'the claimant'), the successful bidder, the contract of the right to make commercial publicity at Kollam, Ernakulam and Thrissur railway stations for a period of five years. Later, disputes arose between the claimant and the Railway regarding allotment of space to the claimant for display of advertisements. The claimant alleged that the Railway violated the terms and conditions of the agreements executed between them and that it led to the collapse of his business. Meanwhile, the Railway terminated the contract with the claimant. Ultimately, as per the order dated 21.07.2014 of this Court in A.R.No.28 of 2013, the dispute between the parties were referred to arbitration and Justice P.S.Gopinathan (Rtd.) was appointed as the sole arbitrator.

(3.) An award was passed by the arbitrator on 24.09.2016 in favour of the claimant allowing him to realise from the Railway, an amount of Rs.1,47,20,000/- with interest @ 12% per annum from 27.01.2014 till the date of the arbitration award and thereafter at 18% per annum till the date of realisation with costs of Rs.3,00,000/-. The Railway was also directed to release the bank guarantee given by the claimant within a month failing which the claimant was allowed to realise the amount of the bank guarantee from the Railway with interest @ 18% per annum.