UNION OF INDIA Vs. FREIGHT CARRIERS

JUDGEMENT

(1.) THIS appeal under Section 37 of the Arbitration and Conciliation Act, 1996 ('Arbitration Act') has been filed by the Union of India praying for setting aside the award dated 21.12.2005 passed by the learned sole arbitrator in Arbitration Case No. MS 3 of 2002 and also the judgment and order dated 24.11.2006 passed by the learned Additional District Magistrate (Judicial), Aizawl in Arbitration Case No. 1 of 2006 upholding the award.

(2.) I have heard Mr. S.N. Meitei, learned central government counsel for the appellant. The sole respondent/contractor was represented by Mr. A.R. Malhotra, learned Counsel. I have also perused the impugned award, contract agreement and evidence of the parties.

(3.) ON the other hand, Mr. Malhotra, learned Counsel for the sole respondent, submitted that since there was no clause in the agreement disentitling the contractor to claim the benefit of price escalation, the learned arbitrator has rightly given the benefit within the meaning of Clause 10(a) of the agreement. In support of this submission, the learned Counsel relied upon two decisions of the Supreme Court rendered in the case of Tarapore and Co. v. State of M.P. : [1994]1SCR1012 and Bharat Coking Coal Ltd. v. L.K. Ahuja : (2004)5SCC109 . Learned Counsel further contended that similar benefit of price escalation of petroleum products was given to another firm in identical situation and as such the learned arbitrator has rightly passed the impugned award giving the same benefit to the present respondent.