MARMAGOA STEELS LTD Vs. MSTC LTD

JUDGEMENT

(1.) The challenge in the present case relates to an Award dated 27th November, 2015, passed by a Learned sole Arbitrator by which the respondent (petitioner before this Court) was directed to pay Rs. 23,84,59,434/- to the claimant (the respondent before this Court). The respondent was also directed to pay interest at 9% for the relevant period till the date of the Award

(2.) For convenience, the petitioner before this Court, who is the Awarddebtor and seeks to have the impugned Award set aside under Section 34 of the Arbitration and Conciliation Act, 1996(the Act) will be referred to as the "petitioner " in the remaining part of this judgment.

(3.) To understand the background of the impugned Award, the facts are stated in brief. The respondent Award-holder is a Government of India undertaking engaged in the procurement of goods from third parties for its customer upon making payment for such goods on behalf of its customer. The petitioner approached the respondent in April 2004 for procurement of LAM Coke. An agreement was thereafter entered into between the parties on 7th April, 2009 containing an arbitration clause which was subsequently modified in May 2010, April 2011 and April 2012. The parties proceeded on the basis of the arbitration clause in its final form. The respondent invoked the arbitration clause after the petitioner failed to repay the money paid by the respondent to the third party vendors for procurement of goods for the petitioner. The subject matter of the dispute before the learned Arbitrator were ten transactions between 2011 and 2012 under which the respondent caused payment to be made to third parties but the petitioner failed to make repayment of such amount to the respondent. A sum of Rs. 23,84,59,434/- thus became due and payable by the petitioner to the respondent. The Statement of Claim of the respondent was filed for an Award of Rs. 23,84,59,434/- together with interim interest and interest pendente lite at 14% p. a and for other reliefs.