UNION OF INDIA Vs. SURAJ CONSTRUCTION CO ULHASNAGAR

JUDGEMENT

(1.) The petitioner has invoked section 34 of the arbitration and Conciliation Act, 1996 (for short, the Act) and thereby challenged the Award dated 15-12-2007 passed by the Arbitral Tribunal, based upon the dispute arising out of work contract. The relevant clauses of the contract are as under :

(2.) The respondent has claimed a sum of Rs.57,93,372/- with interest thereon at 20% p. a. The contract was for a sum of rs.18,82,575/. Admittedly, the total claim is above 20% of the value of the contract. Therefore, objection under section 16 of the Act was raised with regard to the arbitrability, as well as, the jurisdiction of the Arbitral Tribunal to deal with the claims as raised, as, by order dated 13-2-2004 while appointing the Arbitrator, the Court has permitted the parties to raise the issue with regard to the valuation of the claim which is admittedly more than 20% of the value of the contract, as provided under above clauses. The learned Tribunal, however, rejected the application as filed by the petitioner under section 16 of the Act and, therefore, as contemplated under section 34 of the Act, the petitioner has raised this preliminary issue while challenging the Award in question.

(3.) In Arbitration Petition No.285/2007, Union of India vs. M/s Jain brothers by Order dated 5-2-2008, the Hon'ble Judge of this Court has observed as under, in view of the same clauses and similar facts: