STATE OF U.P. versus ALLIED CONSTRUCTIONS

STATE OF U.P. versus ALLIED CONSTRUCTIONS

The force majeure clause was not attracted as no evidence was led to show the flood was caused by unprecedented rain. The arbitrator acted within his jurisdiction, and interpretation of the contract is for the arbitrator. The award stands except for modification of the interest rate.

Parties
Appellant: State of U.P.; Respondent: Allied Constructions
Jurisdiction
India
Judgment Date
31 July 2003
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 18.12.1995 of the Allahabad High Court in F.a.o. No. 715 of 1994
Outcome
Appeal disposed of with modification of the interest rate.
Legal Topics
Force Majeure Clause, Interpretation of Contract, Setting Aside Arbitral Award
Arbitration Contract Force Majeure Clause Interpretation of Contract Setting Aside Arbitral Award

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Parties

State of U.P.

Appellant

Allied Constructions

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 18.12.1995 of the Allahabad High Court in F.a.o. No. 715 of 1994

Legal Issues

  1. 1 Applicability of force majeure clause in construction contract
  2. 2 Grounds for setting aside arbitral award under Arbitration Act, 1940

Ratio Decidendi

The force majeure clause was not attracted as no evidence was led to show the flood was caused by unprecedented rain. The arbitrator acted within his jurisdiction, and interpretation of the contract is for the arbitrator. The award stands except for modification of the interest rate.

Court Disposition

Appeal disposed of with modification of the interest rate.

Orders

  • The interest chargeable from the date of filing of claim till the date of award shall be at the rate of 12 per cent in place of 18 per cent. The award and judgment under challenge stand modified to that extent.
  • No order as to costs.