ASSOCIATED ENGINEERING CO Vs. GOVERNMENT OF ANDHRA PRADESH

JUDGEMENT

(1.) Leave granted in S.L.P. (C) Nos. 7071-72 of 1986.

(2.) These appeals are brought against the common judgment of the Andhra Pradesh High Court in C.M.A. No. 456 of 1984 and C.R.P. No. 2743 of 1984. The High Court set aside in part the common judgment of the Ist Additional Chief Judge, Civil Court at Hyderabad, in Original Suit No. 174 of 1983 and O. P. No. 49 of 1983 whereby he made the award of the umpire (hereinafter referred to as the'umpire'or 'arbitrator') a rule of Court and passed a decree in terms of the award together with interest on the principal amount awarded at the rate of 12 per cent per annum from the date of the decree. The High Court set aside the decree in respect of Claim Nos. Ill, VI and IX and affirmed the decree for the other claims. The main Appeals Nos. 338 and 339 of 1991 arising from S.L.P. (C) Nos. 1573 and 1574 of 1986 are by the Associated Engineering Co. (hereinafter referred to as'the Contractor'). It challenges the judgment of the High Court setting aside the decree of the Civil Court in respect of Claim Nos. III, VI and IX. The other appeals arising from S.L.P. (C) Nos. 7071 and 7072 of 1986 are by the Government of Andhra Pradesh and they are against the judgment of the High Court confirming the decree of the Civil Court in respect of Claim Nos. II, IV and VII(4).

(3.) The High Court set aside Claim Nos. III, VI and IX on the ground that those claims were not supported by the agreement between parties and that the arbitrator travelled outside the contract in awarding those claims. While that portion of the judgment of the High Court is supported by the Government, the Contractor submits that the High Court exceeded its jurisdiction in interfering with a non-speaking award. The Government challenges the judgment of the High Court in so far as it affirmed the findings of the Civil Court in respect of Claim Nos. II, IV and VII(4) on the ground that the arbitrator awarded those claims totally unsupported by the contract.