M/S UNIBROS versus ALL INDIA RADIO

M/S UNIBROS versus ALL INDIA RADIO

The Second Award conflicted with the public policy of India because the Arbitrator ignored the High Court's limited remand direction and again awarded loss of profit without credible evidence of lost opportunities or profits; an award based on no evidence is patently illegal and perverse and thus can be set aside under section 34(2)(b).

Parties
Appellant: M/s Unibros; Respondent: All India Radio
Jurisdiction
India
Judgment Date
19 October 2023
Procedural Posture
Civil Appeal / Appeal to Supreme Court, Judgment
Outcome
Appeal dismissed
Legal Topics
Loss of Profit, Hudson's Formula, Section 34(2)(b), Remand for Reconsideration, Arbitral Award Set Aside
Arbitration Contract Law Public Policy Loss of Profit Hudson's Formula Section 34(2)(b) Remand for Reconsideration Arbitral Award Set Aside

Case Brief

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Parties

M/s Unibros

Appellant

All India Radio

Respondent

Procedural Posture

Civil Appeal / Appeal to Supreme Court, Judgment

Legal Issues

  1. 1 Whether the arbitral award conflicts with the public policy of India under section 34(2)(b) of the Arbitration and Conciliation Act, 1996
  2. 2 Whether a claim for loss of profit succeeds merely on the ground of delay in execution of a contract attributable to the employer
  3. 3 Whether Hudson's formula can be applied in absence of independent evidence of lost opportunities or profits

Ratio Decidendi

The Second Award conflicted with the public policy of India because the Arbitrator ignored the High Court's limited remand direction and again awarded loss of profit without credible evidence of lost opportunities or profits; an award based on no evidence is patently illegal and perverse and thus can be set aside under section 34(2)(b).

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed.
  • Cost awarded by the learned Single Judge is made easy.