UNION OF INDIA versus M/S. SUSAKA PVT. LTD. & ORS.

UNION OF INDIA versus M/S. SUSAKA PVT. LTD. & ORS.

Since the appellant failed to raise the plea based on Clause 13(3) of the GCC at any stage before the Arbitral Tribunal or lower courts, and only raised it for the first time before the Supreme Court, such plea stands waived or abandoned. The grant of interest by the Arbitral Tribunal was not illegal, contrary to public policy, or per se bad in law. The award is binding on the parties, and no indulgence can be granted to permit raising a new plea at this stage.

Parties
Appellant: Union of India; Respondent No. 1 (claimant): M/s. Susaka Pvt. Ltd.; Respondents: Other respondents
Jurisdiction
India
Judgment Date
08 December 2017
Procedural Posture
Civil Appeal No. 8530 of 2009 / Final Appeal Before Supreme Court After Division Bench Judgment of Bombay High Court
Outcome
Appeal dismissed
Legal Topics
Arbitral Award, Interest on Claims, Waiver of Pleas, Practice and Procedure, Binding Nature of Arbitral Awards
Arbitration Law Contract Law Arbitral Award Interest on Claims Waiver of Pleas Practice and Procedure Binding Nature of Arbitral Awards

Case Brief

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Parties

Union of India

Appellant

M/s. Susaka Pvt. Ltd.

Respondent No. 1 (claimant)

Other respondents

Respondents

Procedural Posture

Civil Appeal No. 8530 of 2009 / Final Appeal Before Supreme Court After Division Bench Judgment of Bombay High Court

Legal Issues

  1. 1 Whether the Arbitral Tribunal was justified in awarding interest on various claims to the claimant despite Clause 13(3) of General Conditions of Contract
  2. 2 Whether a new plea can be raised for the first time before Supreme Court that was not raised before the Arbitral Tribunal or lower courts

Ratio Decidendi

Since the appellant failed to raise the plea based on Clause 13(3) of the GCC at any stage before the Arbitral Tribunal or lower courts, and only raised it for the first time before the Supreme Court, such plea stands waived or abandoned. The grant of interest by the Arbitral Tribunal was not illegal, contrary to public policy, or per se bad in law. The award is binding on the parties, and no indulgence can be granted to permit raising a new plea at this stage.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The arbitral award is upheld in its entirety.