M/S SIKKIM SUBBA ASSOCIATES versus STATE OF SIKKIM

M/S SIKKIM SUBBA ASSOCIATES versus STATE OF SIKKIM

Retrospective deletion of procedural High Court Rules cannot nullify prior orders or acts where Division Bench exercised reference powers; award vitiated by serious errors of law and misconduct of Arbitrator including calculation of damages without proof, misreading of materials, and violation of law; Supreme Court set aside the Arbitrator’s award and rejected counterclaim, modified High Court’s judgment, parties to bear own costs.

Parties
Appellant: MIS SIKKIM SUBBA ASSOCIATES; Respondent: STATE OF SIKKIM
Jurisdiction
India
Judgment Date
01 May 2001
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeals disposed of; award of Arbitrator set aside; High Court judgment modified; applications challenging maintainability rejected; parties to bear respective costs.
Legal Topics
Arbitrator Misconduct, Retrospective Rule Deletion, Difference of Opinion in Bench, Damages in Arbitration, Court Powers Under Article 142

Case Brief

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Parties

MIS SIKKIM SUBBA ASSOCIATES

Appellant

STATE OF SIKKIM

Respondent

Procedural Posture

Civil Appeal / Final Judgment

  1. 1 Validity of retrospective deletion of High Court Rules
  2. 2 Effect of difference of opinion between two Judges in Division Bench
  3. 3 Misconduct of Arbitrator and serious errors of law apparent on the face of award

Ratio Decidendi

Retrospective deletion of procedural High Court Rules cannot nullify prior orders or acts where Division Bench exercised reference powers; award vitiated by serious errors of law and misconduct of Arbitrator including calculation of damages without proof, misreading of materials, and violation of law; Supreme Court set aside the Arbitrator’s award and rejected counterclaim, modified High Court’s judgment, parties to bear own costs.

Court Disposition

Appeals disposed of; award of Arbitrator set aside; High Court judgment modified; applications challenging maintainability rejected; parties to bear respective costs.

Orders

  • Award of Arbitrator, as affirmed by Trial Court, set aside.
  • Judgment of Sikkim High Court dated 29.9.1995 modified accordingly.