WEST BENGAL STATE ELECTRICITY BOARD Vs. BENGAL TRADERS

JUDGEMENT

(1.) This is an application for setting aside of an unreasoned award of an Umpire.

(2.) A point has been raised about the jurisdiction of this Court, but there is no substance in it. It is stated in para. 3 of the affidavit -in -opposition that the West Bengal State Electricity Board carries on business at 9 Old Post Office Street, Calcutta, within the local limits of the Ordinary Original Civil Jurisdiction of this Court and it is merely replied in para. 4 of the reply that the said office has no relation to the contract of the Respondent. In my opinion no -further discussion on this point is necessary.

(3.) Mr. Mullick has next submitted that the Umpire went beyond his jurisdiction because he awarded sums claimed on account of escalation. According to Mr. Mullick Clause 49 of the Contract which is extracted as Annex. 'C' to the petition prohibits such award on account of escalation. He said that not only could escalation not be awarded, but also that there was no question of any award of interest upon such claim, which was in reality a claim for damages. In support of this proposition he relied upon the recent Supreme Court case of a learned in Two Judge Bench Associated Engineering Co. : 1991 (4) S.C.C 93. He pointed out that in that case also there was an award upon heads which were prohibited from further claims by the contractor by reason of a contractual clause. He placed a portion of the judgment from paras. 21 to 25 and said that Their lordships of the Supreme Court clearly laid down in that case that an Arbitrator had no jurisdiction to award damages or sums of money in opposition to prohibitions contained clearly in contractual clauses.