Bench: HON’BLE THE CHIEF JUSTICE
HON’BLE MR. JUSTICE JB PARDIWALA
HON’BLE MR. JUSTICE MANOJ MISRA
Case Title : M/S AMALGAMATED TRANSPOWER (INDIA) LTD. VS. SIKKIM POWER DEVELOPMENT CORPORATION LIMITED.
Case details: this case involves legal dispute between two entities, where the specifics of the case would be related to contractual obligations, business dealings, or other issues arising in a corporate context.
Facts:
- Conciliation Act, 1996 against the impunged judgment dated 26.12.2019 passed by the learned Commercial Court, East Sikkim, at Gangtok in Arbitration Case No. 05 of 2017, preferred under section 34 of the Arbitration Act by Sikkim Power Development Corporation Ltd. and the State of Sikkim.
- The Sole Arbitrator held that prayer was a claim for compensation for damages to be paid by SPDC and the SoS for non adherence to prayers and allowed the same to have effect upon their failure to adhere to the said prayers. The Sole Arbitrator also held issues nos.20 and 11 in favour of ATPL.
- A tender was floated by SPDC inviting bids for construction of Hydro Electric Power Projects (HEPs) on 100 percent debt financing basis.
- The Sole Arbitrator granted all the prayers in favour of ATPL, except prayer [H].
- The Commercial Court partly allowed the petition under section 34 of the Arbitration Act preferred by SPDC and SoS.
Court Observed: –
- As ATPL has not challenged the Sole Arbitrator ‘s Award declining to grant damages in terms of prayer [H], we do not interfere with it.
- Consequently, the Award of interest in terms of prayer and costs in terms of prayer are also set aside. ATPL may claim the actual cost incurred by them, as prayed for in prayer and interest thereon by way of fresh arbitration, if they so desire. SPDC and SoS are at liberty to file their counter-claim in this regard.
Held by Court:
In conclusion, the impugned judgment to the extent it declines grant of prayers in favor of ATPL is upheld. Consequently, the amount deposited by SPDC and SoS in terms of the order of the Hon ‘ble Supreme Court dated 14.10.2022 in Special Leave Petition, shall be released along with interest accrued thereon.
The two Appeals stand disposed of accordingly.
Parties to bear their respective cost.
