ATV PROJECTS INDIA LTD Vs. WALCHANDNAGAR INDUSTRIES LTD

JUDGEMENT

(1.) THIS appeal is directed against the judgment dated 5/6th April, 1995 passed by the learned Single Judge in Arbitration Petition No.143 of 1992 whereby he refused to set aside the award dated 23rd December, 1991 in entirety in respect of the escalation cost and award of interest.

(2.) ON 12.8.1983, the parties entered into the agreement for the purpose of executing a contract to design, manufacture, procure and supply on exworks basis machinery and equipments for boiler plant and centrifugal station for a sugar plant. The dispute arose between the parties and ultimately in the arbitration suit filed under the ARBITRATION AND CONCILIATION ACT, 1940, the parties agreed that all the disputes and claims between them arising out of the agreement including the question whether any party is entitled to receive any amount from the other be referred to the sole arbitration of Mr.C.T.Dighe, retired High Court Judge. Consequent upon the said agreement, the arbitration suit was disposed of on 19th February, 1988 and Mr.C.T.Dighe, former Judge of this court was appointed as the Arbitrator.

(3.) THE respondents by filing petition prayed for setting aside the award dated 23rd December, 1991. The award was challenged on four grounds; (i) escalation costs; (ii) interest; (iii) validity of performance guarantee; (iv) charges for keeping the bank guarantee alive and of cost.