BHARAT COKING COAL LTD Vs. KRISHNA TRANSPORT COMPANY

JUDGEMENT

(1.) HEARD the parties. In terms of Clause 24 of the Terms and Conditions of N.I.T. dated 14.12.1991, the dispute raised by the respondent -contractor of sand transportation contract for the years 1989 - 90 and 1990 -91 was referred to arbitration and the arbitrator gave award dated 2nd September, 1992, whereby for the years 1989 -90 and 1990 -91, escalation in the rate for sand transportation over the rate of the year 1988 - 89 was allowed, respectively to the extent of 7% and 17%. The said award has been made Rule of the Court. I find no reason to interfere with the said part of the award which has been made Rule of the Court.

(2.) IN the next part of the award, a lump -sum amount of Rs. 4,38,400/ - was calculated to be paid to the respondent -contractor on account of enhancement of rates and on the aforesaid awarded amount future interest @ 13% per annum after three months of the award till the date of payment was allowed. In my view the arbitrator went beyond the terms of reference. It is not in dispute that under the terms of reference the arbitrator was merely required to consider and adjudicate upon the rates of transportation, lawfully payable to the respondent -contractor and it was not within the jurisdiction of the arbitrator to award any lump -sum amount after calculating on the enhanced rate in respect of the quantum of sand said to have been supplied during the period in question.