MAZGAON DOCK LIMITED Vs. MCDERMOTT INTERNATIONAL INC

JUDGEMENT

(1.) THE petitioners had floated global tender No. OP/sc/inst/101 dated July 18, 1983 for the transportation and installation of certain structures fabricated by it, transportation and laying of pipe-lines, etc. for the working season 1983-84. After reviewing the offers received, the petitioners awarded to the respondents on a lumpsum contract basis the contract No. AA/op/64/83-84, OP/sc/inst/101 dated January 14, 1984, which is referred to by the parties as "contract No. D-2318". Clause 53 of Annexure XIII of the contract provided for arbitration of disputes between the parties.

(2.) CERTAIN disputes arose between the petitioners and the respondents. The respondents by their letter dated August 7, 1989 appointed their arbitrator and called upon the petitioners to appoint their arbitrator to decide the disputes that had arisen. Thus the disputes came to be referred to the Joint Arbitration of Shri R. P. Bhatt and Shri. B. Datta. The Joint Arbitrators differed and consequently, the reference was made to the Umpire, Shri. Y. V. Chandrachud, the Ex Chief Justice of the Supreme Court of India. The arbitration relating to the disputes under the contract bearing Reference No. D-2318 for the sake of convenience was referred to by parties, and by the learned Umpire in his Award as "case No. 1" as there were references to arbitration of the same Umpire in respect of disputes arising out of the two later agreements between the parties bearing Ref. Nos. D-2807 and D-2827.

(3.) IN this petition under section 30 of the Arbitration Act,1940 ("the said Act", for short), the petitioners are challenging the claim allowed at serial No. IV of interest on invoices which were paid late. The petitioners are also challenging the claim of interest allowed by the learned Umpire for payment of interest at 12% per annum from June 30, 1987 on item at serial No. 1 viz. 'priority work.