KRISHNA BHAGYAJALA NIGAM LTD. versus G. HARISCHANDRA REDDY AND ANR.

KRISHNA BHAGYAJALA NIGAM LTD. versus G. HARISCHANDRA REDDY AND ANR.

A party who has consented to arbitration and participated in proceedings cannot subsequently dispute the existence of an arbitration agreement where both parties proceeded on that basis; award stands except reduction of interest rate and idling charges.

Parties
Appellant: Krishna Bhagya Jala Nigam Ltd.; Respondent: G. Harischandra Reddy
Jurisdiction
India
Judgment Date
10 January 2007
Procedural Posture
Civil Appeal / Appeal Before Supreme Court
Outcome
Appeal partly allowed
Legal Topics
Arbitration Clause, Waiver of Objections, Interest Rates, Idling Charges
Arbitration Arbitration Clause Waiver of Objections Interest Rates Idling Charges

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Parties

Krishna Bhagya Jala Nigam Ltd.

Appellant

G. Harischandra Reddy

Respondent

Procedural Posture

Civil Appeal / Appeal Before Supreme Court

Legal Issues

  1. 1 Whether Clause 29 of the contract constitutes an arbitration clause
  2. 2 Whether Jala Nigam can now object to arbitration after consenting and participating
  3. 3 Quantum of claims including idling charges and interest rates

Ratio Decidendi

A party who has consented to arbitration and participated in proceedings cannot subsequently dispute the existence of an arbitration agreement where both parties proceeded on that basis; award stands except reduction of interest rate and idling charges.

Court Disposition

Appeal partly allowed

Orders

  • Interest rate reduced from 18% to 9% for pre-arbitration, pendente lite, and future period
  • Idling charges reduced from Rs. 1.47 crores to Rs. 1 crore