K. R. Shriram, J. - (1.) Both the parties to the arbitration proceedings have filed petitions under Section 34 of the Arbitration and Conciliation Act, 1996 (the said Act) impugning the award dated 20.10.2016 passed by the sole Arbitrator. Claimant in the arbitral proceedings - M/s. Maa Ashish Textile Industries Private Limited is, for convenience, referred to herein as petitioner and National Insurance Company Limited is, for convenience, referred to herein as respondent.
(2.) Petitioner had lodged their claim in two parts, (a) for a sum of Rs.1,95,08,797/- being part of the claim amount not paid together with interest thereon and (b) interest on delayed payment of part of the claim amount. The first part of the claim for Rs.1,95,08,797/- was rejected by the Arbitrator, which part of the award has been impugned in this petition by petitioner and the Arbitrator allowed the second part of petitioner's claim, viz., interest on delayed payment, which part has been challenged by respondent in its petition. It is settled law that the principle of severability is applicable to an arbitral award (R.S. Jiwani, Mumbai v Ircon International Ltd., Mumbai, 2010 1 MhLJ 547) where the Full Bench of this Court held that the power vested in the Court under Section 34(1) and 34(2) should not be construed rigidly and restrictedly so as to prevent the Court from setting aside an award partially.
(3.) Petitioner, in its arbitration petition no.71 of 2017, seeks to challenge the award on the limited point that the Arbitrator's rejection of petitioner's claim of Rs.1,95,08,797/- is perverse, riddled with contradictions and inconsistencies. Respondent, in its arbitration petition no.153 of 2017, has challenged the award of interest on delayed payment of the claim in favour of petitioner.;