U.P HOTELS ETC. versus U.P. STATE ELECTRICITY BOARD

U.P HOTELS ETC. versus U.P. STATE ELECTRICITY BOARD

The arbitral award is not amenable to interference as no erroneous proposition of law forms the basis of the award; the Umpire's view on section 49 and the bulk supply agreement was a possible interpretation in light of Indian Aluminium Co. Ltd. v. Kerala Electricity Board, and therefore must be upheld.

Parties
Appellant: U.P. Hotels; Respondent: U.P. State Electricity Board
Jurisdiction
India
Judgment Date
28 October 1988
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Setting Aside Arbitral Award, Interpretation of Bulk Supply Agreement, Jurisdiction to Correct Errors of Law Apparent, Application of Electricity (supply) Act, 1948 Section 49
Arbitration Electricity Law Contract Law Setting Aside Arbitral Award Interpretation of Bulk Supply Agreement Jurisdiction to Correct Errors of Law Apparent Application of Electricity (supply) Act, 1948 Section 49

Case Brief

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Parties

U.P. Hotels

Appellant

U.P. State Electricity Board

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Judgment

Legal Issues

  1. 1 Whether an arbitral award can be set aside for error of law apparent on the face of the award
  2. 2 Whether section 49 of the Electricity (Supply) Act, 1948 permits unilateral variation of tariff in presence of a subsisting contract
  3. 3 Whether the Umpire correctly interpreted the agreement and the law

Ratio Decidendi

The arbitral award is not amenable to interference as no erroneous proposition of law forms the basis of the award; the Umpire's view on section 49 and the bulk supply agreement was a possible interpretation in light of Indian Aluminium Co. Ltd. v. Kerala Electricity Board, and therefore must be upheld.

Court Disposition

Appeal allowed

Orders

  • The judgment and order of the High Court dated 21st July, 1987 and the order of the Ilnd Additional District Judge, Lucknow, dated 30th May, 1984 are set aside.
  • The award of the Umpire is confirmed and made Rule of the Court under section 14(2) of the Arbitration Act, 1940.