Neutral Citation: 2024 INSC 628
Cause Title: PAM DEVELOPMENTS PRIVATE LIMITED VS. THE STATE OF WEST BENGAL
Case Number: CIVIL APPEAL NO.9781-9782 of 2024 @ SLP (C) Nos. 8128 -8129 of 2021
Judgment Date: August 23, 2024
Quorum/Bench: Hon'ble Justice PAMIDIGHANTAM SRI NARASIMHA, and Hon'ble Justice PANKAJ MITHAL
State of West Bengal, issued a notice inviting tenders on 08.09.2010, for the widening and strengthening of Egra Bajkul road under the Tamluk Highway Division in Purbo Medinipur District and accepted appellant’s offer, leading to grant of a Work Order for the project to be completed within 18 months from 23.12.2010. The project got delayed by about five months, but the work was completed by 09.11.2012. The appellant raised a bill for Rs. 77,85,290 and that was in addition to seven other claims under different heads, owing to alleged delays on part of the Respondent. As the respondent denied any liability, the dispute was referred to Arbitration for resolution.(PARA 04)
The High Court also inferred that they had no reason to interfere with the Arbitral Award with respect to grant of pre-reference interest, since the Contract between parties does not prohibit the same.
Uphold the decision of the High Court in setting aside the Award with respect to claim no. 3 and dismiss the Civil Appeal to this extent.
Decision of the Judgment
The Supreme Court decided to, Uphold the decision of the High Court in setting aside the Award with respect to claim no. 3 and dismiss the Civil Appeal to this extent. Allow the appeal and set aside the judgment of the High Court as it rejected and set aside claim no. 4 awarded by the Arbitrator, as upheld by the District Judge under Section 34. Allow the appeal and set aside the judgment of the High Court as it modified claim no. 6, to the extent of rejecting pre-reference interest awarded by the Arbitrator, as upheld by the District Judge under Section 34. Award of claim no. 3 is set aside and Award of claim no. 4 is upheld. Under claim no.6, the appellant will also be entitled to claim pre-reference interest.
Comments