BHARAT HEAVY ELECTRICALS LTD. versus TATA PROJECTS LTD.

BHARAT HEAVY ELECTRICALS LTD. versus TATA PROJECTS LTD.

The appellant is entitled to deduct crane hire charges from the amount payable to the respondent under the Award in accordance with the contract and tender document, and no pre-Award interest is payable in view of clause 1.15.5 of the agreement; post-Award interest remains at 10.5% as awarded by the Arbitral Tribunal.

Parties
Appellant: Bharat Heavy Electricals Ltd.; Respondent: Tata Projects Ltd.
Jurisdiction
India
Judgment Date
01 September 2014
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From High Court (division Bench) Decision
Outcome
Appeal allowed. Order under appeal set aside to the specified extent.
Legal Topics
Arbitral Award, Interest on Award, Works Contract, Recovery of Charges
Arbitration Contract Law Arbitral Award Interest on Award Works Contract Recovery of Charges

Case Brief

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Parties

Bharat Heavy Electricals Ltd.

Appellant

Tata Projects Ltd.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From High Court (division Bench) Decision

Legal Issues

  1. 1 Whether the appellant is entitled to recover crane hire charges from the respondent under the contract and tender documents.
  2. 2 Whether pre-Award interest is payable by the appellant to the respondent in light of clause 1.15.5 of the agreement.
  3. 3 Whether post-Award interest should be enhanced from 10.5% to 18% as per Section 31(7)(b) of the Arbitration and Conciliation Act, 1996.

Ratio Decidendi

The appellant is entitled to deduct crane hire charges from the amount payable to the respondent under the Award in accordance with the contract and tender document, and no pre-Award interest is payable in view of clause 1.15.5 of the agreement; post-Award interest remains at 10.5% as awarded by the Arbitral Tribunal.

Court Disposition

Appeal allowed. Order under appeal set aside to the specified extent.

Orders

  • Appellant entitled to crane hire charges; such amount to be deducted from amounts payable to respondent under the Award on other heads.
  • Appellant not liable to pay any pre-Award interest; interest at 10.5% p.a. payable from date of Award till date of payment on the Award amount.