AKA LOGISTIC PRIVATE LIMITED Vs. DAMODAR VALLEY CORPORATION
LAWS(CAL)-2015-7-33
HIGH COURT OF CALCUTTA
Decided on July 29,2015

Aka Logistic Private Limited Appellant
VERSUS
DAMODAR VALLEY CORPORATION Respondents

JUDGEMENT

SANJIB BANERJEE, J. - (1.) THE challenge here is to an interim arbitral award on the ground that it decides the rights of the parties finally and has required only the quantum due to the petitioner to be ascertained by an expert under Section 26 of the Arbitration and Conciliation Act, 1996. The ground urged by the petitioner is that there is error apparent on the face of the award in the flawed interpretation of a key clause of the agreement between the parties.
(2.) PURSUANT to a tender process initiated in December, 2008, Damodar Valley Corporation issued a work order to the petitioner on June 25, 2009, inter alia, for liaising with the railways and coal companies for supply of coal to the Mejia Thermal Power Station of DVC, the uploading of coal rakes, the annual repair and maintenance of coal handling plants and the removal of technological waste from the relevant units. It is the admitted position that the work was undertaken by the petitioner for DVC about a fortnight prior to the issuance of the formal work order.
(3.) THE matter in issue herein is the petitioner's claim on account of escalation. It is not in dispute that the counter -claim made by the petitioner has been rejected in its entirety by the impugned interim award; as has been the claim on another head made by the petitioning -contractor before the arbitrator. There is no grievance regarding the rejection of the counterclaim of the employer or the rejection of the other head of claim that had been carried by the contractor to the reference. Clause 8.122 of the work order dated June 25, 2009 deals with price variation. Since the only issue here relates to the interpretation of such clause, the same is set out: "8.122 The rates / prices will remain firm for Parts A (i and ii) throughout the contract period. However, in case of extension or extensions after satisfactory completion of one (1) year of the contract period. Offered Prices for Parts B, C and D which shall remain firm for 1st year during execution of the contract will be subjected to variation (both upward and downward) giving weightage of 90% only w.r.to the corresponding initial Offered Rates. Adjustment / Payment is respect of Contractor's R.A. Bills during such extended period(s) will be made prior to ascertaining actual amount payable or adjustable, as the case may be, and this will be based on Notification / Circular issued by the Govt. of West Bengal from time to time in respect of periodical Wage Revision only." ;


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