LexVISAKHAPATNAM PORT TRUST versus M/S CONTINENTAL CONSTRUCTION COMPANY
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[2009) 2 S.C.R. 840 A VISAKHAPATNAM PORT TRUST ....... v MIS CONTINENTAL CONSTRUCTION COMPANY Civil Appeal No 5849-5850 of 2002··- B FEBRUARY 20, 2009 (MARKANDEY KAT JU AND R.M. LODHA,. JJ.) Arbitration Act, 1940 : ~ Sections 17, 37 :-Arbitration Award- Reasons given by c the 'Arbitrators subsequently - Held: Reasonableness of the reasons given i:JY arbitrators·cannot be gone into by the Court - Also, the amendment in s. 17 vide Andhra Pradesh Act not attracted since award was passed prior to the amendment - Limita_(ion Act, 1963, Section 137. D ;k The two appeals arising from the common judgment of the High Court, ~elate to s.37 of the Arbitration Act, 1940 and Article 137 of the Limitation Act, 1963 as also the ./ amendment in s.17 of the Arbitration Act vide Andhra Pradesh Act 1 of 1990. E. --- Disposing of the appeals, the Court .... HELD: 1. Th.e amendment in Section 17 of the ......... Arbitration Act, 1940 vide A.ndhra Pradesh Act (1 of 1990) ~ is not attracted in the present fact situation as the award F was passed by the arbitrators o_n 20th November, 1985 i.e. much before the amendment. As per Section 17 then obtaining, it \Xas not imperative for the arb.itrators to give reasons in support of the award. Secondly, upon the. award dated 20th November, 1985 being challenged by G Visakhapatnam Port Trust (VPT) before Principal Sub- ordinate Judge, Visakhapatnam, he has· directed the ,,. 1 · arbitrators to· give reasons for the award in the light of the amendment. [Para 25] [850-D] H 840 ' -1 VISAKHAPATNAM PORT TRUST V. M/S 841 CONTINENTAL CONSTRUCTION COMPANY k-._'>\ 2. Subsequently the arbitrators did give their reasons. A Reasonableness of the reasons given by arbitrators cannot be gone into by the Court. [Para 27] [851-B] 3.1 The judgment of the High Court of Judicature of Andhra Pradesh in CMA No. 1559/1994 is set aside. The claim of Mis Continental Construction Company for Rs. B 74,810.38 stands dismissed. The amount of Rs. 74,810.38 "- deposited with the executing Court by Visakhapatnam · Port Trust pursuant to the order dated 27th September, 2004 of this Court shall be refunded to them ~tongwith interest accrued thereon. [Para 28] [851-D] c 3.2 The judgment of the High Court in CMA No.77/ 1995 is affirmed. The amount of Rs. 6,44,500/- deposited by Visakhapatnam Port Trust with the executing Court . ' -..I, pursuant to the order of this Court dated 27th September, 20~4 shall be paid to Mis Continental Construction D Company alongwith interest accrued thereon. [Para 28] [851-E] · CIVILAPPELLATE JURISDICTION: Civil Appeal No 5849- 5850 of 2002 E ,. From the Judgement and Order dated 26.04.2002 of the Hon'ble High Court of JudicatureAndhra Pradesh at Hyderabad ~ in CMA Nos. 1559 of 1994 & 77of1995. ( Kailash Vasdev, Gopal Singh, for the Appellants . • I S.S. Upadhyay, Santosh Mishra, Kumud Das, Rajesh R. F Dubey, Sharmila Upadhyay, for the Respondent. The Judgement of the Court was delivered by R.M. LODHA, J. Both these appeals by ~ecial leave, arise out of one and G ~ the same judgment dated 26 April, 2002 rendered by the High Court of JudicatureAndhra Pradesh whereby it allowed the two appeals being CMA No. 1559/1994 and CMA No. 77/1995. . - 2. For the sake of convenience, we shall refer the appellant H 842 SUPREME COURT REPORTS [2009) 2 S.C.R. A - Visakhapatnam Port Trust, "VPT" and the respondent - M/s Continental Construction Company, "the Contractor". 3. In CMA No. 1559/1994 before the High Court, the dispute between the parties was in respect of refund of an amount of B Rs. 74,810.38 which was recovered by VPT from the contractor's running-bill no. 21. VPT entered into an agreement with the th contractor on 7 January, 1973 where under the contractor was to construct the ore berth 263 meters long 29. 73 meters wide comprising of eight numbers of 18 meters x 27.73 meters long concrete cribs spaced at 35M centres on prepared foundations c and connected by pre-cast pre-stressed deck and R.C.C. slab and construction of two Mooring Dolphins comprising concrete deck supported on 900mm internal diameter Racker bored piles. For the execution of the said contract, VPT was to supply various equipments comprising of hydraulic jacks, hydraulic D pumps, steel yoke assembly, jack rods etc. and it appears to be fairly admitted position that 950 nos. of jack rods were supplied btY VPT to the contractor.
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