RETNASAMY ELANGO Vs. HARSHA A. GUDKA

JUDGEMENT

(1.) Heard Mr. M.P. Rao, learned Senior Counsel for the petitioners and Mr. Bhavin Manek, learned Counsel for the respondents in both the petitions, at length.

(2.) By these petitions under Section 34 of the Arbitration and Conciliation Act, 1996 (for short, 'Act'), the petitioners, hereinafter referred to as the 'vendors', have challenged the awards dated 29.11.2017 read with corrected award dated 6.12.2017 made by the Sole Arbitrator. By award dated 29.11.2017, the Arbitral Tribunal allowed the claim made by the respondents, hereinafter referred to as the 'purchasers'. The claim made by the purchasers was allowed and the vendors are directed to pay an amount of Rs.36,04,444/- along with interest @ Rs.9% per month from 7.8.2010 on amount of Rs.36,04,444/-. The vendors are directed to pay an amount of Rs.11,83,18,980/- within a period of 120 days from the date of communication of the award i.e. 29.11.2017, failing which they will be liable to pay simple interest @ 9% per annum on the amount of Rs.11,83,18,980/-. The vendors are also directed to pay costs quantified at Rs.26,91,334/- within a period of 120 days from the date of communication of award i.e. 29.11.2017, failing which they will be liable to pay simple interest @ 9% per annum thereon.

(3.) The award dated 29.11.2017 was corrected on 6.12.2017 on account of typographical errors as also computational error in the award. The Arbitral Tribunal noted that the agreed consideration of Rs.5,72,00,000/- remained to be deducted from the amount of Rs.11,83,18,980/-. The amount computed after deducting Rs.5,72,00,000/- from Rs.11,83,18,980/- comes to Rs.6,11,18,980/-. The Arbitral Tribunal accordingly exercised the powers vested in it under Section 33(3) of the Act and directed the vendors to pay an amount of Rs.6,11,18,980/- within a period of 120 days from the date of communication of award i.e. 29.11.2017, failing which they will be liable to pay simple interest @ 9% per annum on the amount of Rs.6,11,18,980/-. The relevant and material facts giving rise to filing of present Arbitration Petition, briefly stated, are as under.