Case Law Details
State of West Bengal Vs Tapas Kumar Hazra (Calcutta High Court)
Conclusion: In present facts of the case, the Hon’ble Calcutta High Court have allowed appeal under Section 34 of the Arbitration and Conciliation Act, 1996 on the issue that the arbitrator has not furnished any arithmetical basis or any documentary evidence to support the claim awarded to the respondent as Reasons are the links between the materials on which certain conclusions are based and the actual conclusions.
Facts: In present facts of the case, application under Section 34 of the Arbitration and Conciliation Act, 1996 is filed challenging the award passed by the Ld. Sole Arbitrator. In present facts of the case, the Respondent invoked Clause 25 of the Agreement and accordingly arbitrator was appointed to resolve the dispute pertaining to the payment issues.
The respondent had made altogether 18 claims including interest but the Ld. Arbitrator has Awarded Claim No. 1 amounting to Rs. 15,02,126/, Claim no. 9 amounting to Rs. 90,000/-, Claim No. 10 amounting to Rs. 20,000/-, Claim No. 16 interest of 13% per annum from 1.1.2000 and Claim No. 17 Cost of Rs.1,00,000/-.
The petitioner contended that the Ld. Arbitrator has passed the award without any evidence. It was also contended that the claim no. 1 of the respondent is totally barred by limitation as the contract expired on 14th July, 1998 and the respondent has submitted his claim for arbitration on 5th July, 2002 i.e. after the period of three years as prescribed under law. It is further contended that the respondent had accepted final bill without any objection on 1st July, 1999 and claim was submitted on 5th July, 2002. The Ld. Arbitrator has wrongly come to the finding that payment was made long after May, 2002.
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