STATE OF RAJASTHAN versus PURI CONSTRUCTION CO. LTD. AND ANOTHER

STATE OF RAJASTHAN versus PURI CONSTRUCTION CO. LTD. AND ANOTHER

Applicant's participation with full knowledge of alleged disqualification and failure to timely object bars challenge to the award on misconduct; objections not raised within limitation are barred; lump sum awards by arbitrators are valid and not illegal; erroneous findings alone do not amount to legal misconduct unless patent and easily demonstrable; enhanced interest and pre-award interest not allowed in facts of case.

Parties
Appellant: State of Rajasthan; Respondent: Puri Construction Co. Ltd.
Jurisdiction
India
Judgment Date
16 September 1994
Procedural Posture
Special Leave Petition (civil) No. 9089 of 1984 / Disposition of Objections to Arbitration Award and Interlocutory Application
Outcome
Petition of objection and additional objection dismissed; award upheld; application disposed of.
Legal Topics
Arbitration Award, Legal Misconduct, Limitation, Interest on Award
Arbitration Arbitration Award Legal Misconduct Limitation Interest on Award

Case Brief

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Parties

State of Rajasthan

Appellant

Puri Construction Co. Ltd.

Respondent

Procedural Posture

Special Leave Petition (civil) No. 9089 of 1984 / Disposition of Objections to Arbitration Award and Interlocutory Application

Legal Issues

  1. 1 Whether the award was liable to be set aside for alleged misconduct of arbitrators
  2. 2 Whether objections to the award by the applicant are barred by limitation
  3. 3 Whether the arbitrators erred in awarding a lumpsum without detailed computation

Ratio Decidendi

Applicant's participation with full knowledge of alleged disqualification and failure to timely object bars challenge to the award on misconduct; objections not raised within limitation are barred; lump sum awards by arbitrators are valid and not illegal; erroneous findings alone do not amount to legal misconduct unless patent and easily demonstrable; enhanced interest and pre-award interest not allowed in facts of case.

Court Disposition

Petition of objection and additional objection dismissed; award upheld; application disposed of.

Orders

  • Award of Rupees one crore made rule of Court.
  • No interest awarded from February 24, 1979 or May 30, 1979; enhancement of interest rate to 18% denied.