DLF UNIVERSAL LIMITED Vs. ATUL LIMITED

JUDGEMENT

(1.) THIS Appeal preferred under Section 37 of the Arbitration and Conciliation Act, 1996 by one DLF Universal Limited arises from the judgment and order dated 20th September, 2008 passed by the Principal District Judge, Valsad in Civil Misc. (Arbitration) Application No. 42/2005. By impugned judgment, the learned Judge has rejected the challenge to the arbitral award under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act" ).

(2.) ONE DLF Industries Limited, predecessor of the appellant DLF Universal Limited, had entered into an agreement for supply and commission of no. 50 TPH Atmospheric Fluidized Bed Combustion Boiler with Auxiliaries, ESP Chimney, Electrical Controls and Instrumentation alongwith interconnecting piping for commercial operation by 15th September, 1996 with the respondent Atul Limited (hereinafter referred to as "the Atul" ). The said contract was not carried out as stipulated. The Atul, therefore, by its letter dated 16th June, 1999, terminated the said contract. The disputes arising from the said termination of the contract were, at the instance of the Atul, referred to the arbitral tribunal comprising a Presiding Arbitrator and two Arbitrators.

(3.) BEFORE the arbitral tribunal, the Atul raised several demands including refund of a sum of Rs. 174. 30 lakhs; compensation/damages in the sum of Rs. 5 crores; loss of profit/compensation in the sum of Rs. 141. 25 crores; damages of Rs. 60. 60 lakhs; Rs. 12 crores for future expenses the Atul would incur for completion of the plant on account of risk purchase and interest @ 24% per annum.