J G ENGINEERS PVT LIMITED Vs. CALCUTTA IMPROVEMENT TRUST
SUPREME COURT OF INDIA (FROM: CALCUTTA)
J.G.ENGINEER'S PRIVATE LIMITED
CALCUTTA IMPROVEMENT TRUST
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Y. K. Sabharwal, J. -
(2.)The dispute and differences between the contractor -appellant and respondent Calcutta Improvement Trust (CIT) were determined by award dated 30th Sept., 1999. The arbitrator held that the contract was wrongly terminated by CIT and awarded in favour of the contractor a sum of Rs. 24,80,000/- besides interest. The award was challenged by the CIT by filing an application under Sections 30 and 33 of the Arbitration Act, 1940. That application was rejected by a learned single Judge of the High Court. The appeal of the CIT was, however, allowed by the Division Bench and the award was set aside. The contractor has challenged the correctness of the decision of the Division Bench.
(3.)The main grounds on which the award has been set aside by the impugned judgment are two. First, that the question of the wrongful termination of the contract was an excepted matter and, thus, not arbitrable. Second, the arbitrator has not considered the counter claim of the CIT and thereby has failed to exercise jurisdiction vested in him by law.
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