STATE OF JHARKHAND Vs. WEBEL TECHNOLOGY LIMITED

JUDGEMENT

(1.) Heard the learned counsel for the parties.

(2.) This arbitration appeal has been filed under Sec. 37 of Arbitration and Conciliation Act, 1996 against the order dtd. 16/6/2009 passed by learned Subordinate Judge I, Ranchi in Misc. Case No. 54 of 2007, whereby the learned court below has refused to interfere with the award dtd. 23/7/2007 passed by the learned sole Arbitrator under Sec. 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act of 1996). The learned Arbitrator has directed the appellant to pay Rs.17,05,00,000.00 to the claimant/respondent with interest @ 12 percent per annum from April, 2004 till the date of the award and has directed that if the said amount is not paid within the period of 30 days from the date of the award, the appellant shall pay the same with interest @ 14% from the date of the award till the date of payment. The learned Arbitrator has also awarded the cost of arbitration amounting to Rs.1,56,000.00. The learned Arbitrator, however, rejected the counter-claim of the appellant amounting to Rs.7,61,25,000.00 against claimant/respondent.

(3.) The case of appellant, in brief, is that the appellant (Department of Information and Technology, Govt. of Jharkhand) has decided to provide Computer Education in 500 Schools in Jharkhand. M/s. Webel Technology Ltd. (claimant-respondent) made an offer to the Department to undertake Computer Literacy Programme in association with IBM in 500 Schools in the State of Jharkhand under scheme Build, Own, Operate and Transfer (BOOT) basis. The parties entered into an agreement on 2/4/2003. The broad terms of the agreement are that the respondent shall provide Computer Education Services in 500 Schools selected by the I.T. Deptt. (appellant) at the cost of Rs.105.00 per month per student. Payment to be made by the School authorities or by any other nodal agency to be identified by the information Technology Ministry. The Duration for the contract shall be for 5 years commencing from the date of signing the contract or commencement of operation in Schools whichever is later. There is a clause which provides for termination of the contract.