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        Case ID :

        2001 (2) TMI 1048 - SC - Indian Laws

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        Arbitral award interference limited where contract exceptions to continuous electricity supply were not proved on evidence. An arbitral award granting refund and damages for interruption in electricity supply was upheld because the tribunal construed the contract and evidence, ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Arbitral award interference limited where contract exceptions to continuous electricity supply were not proved on evidence.

                              An arbitral award granting refund and damages for interruption in electricity supply was upheld because the tribunal construed the contract and evidence, including the supplier's incomplete log books, and found that the contractual exceptions for interruption or deficiency were not established. The award was treated as falling within the agreement rather than outside its scope, and the mere possibility of an alternate view did not justify interference with the arbitral findings. The civil court and High Court affirmation was therefore maintained.




                              Issues: Whether the arbitral award granting refund and damages for interruption in electricity supply was beyond the scope of the agreement and liable to interference.

                              Analysis: The agreement guaranteed continuous supply of electricity, but the proviso to clause 1 excluded liability where interruption, stoppage, or deficiency resulted from the specified causes or causes beyond the supplier's control. The arbitrators examined the pleadings, evidence, and log books, found that the supplier had not produced complete log books for the relevant period, and noted that the reasons shown were either absent or untenable. On that material, the award was treated as arising within the contractual framework and not as a case warranting appellate reappreciation of evidence. The existence of an alternate view did not justify interference with the arbitral findings.

                              Conclusion: The challenge to the award failed, and the award as affirmed by the civil court and the High Court was upheld.

                              Ratio Decidendi: An arbitral award based on appreciation of contract terms and evidence will not be interfered with merely because another view is possible, especially where the award is supported by a finding that the contractual exceptions were not established on the record.


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                              ActsIncome Tax
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