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of <h1>Supreme Court Affirms Arbitration Clause, Reduces Interest Rate</h1> <h3>Mukand Ltd. Versus Hindustan Petroleum Corporation Ltd.</h3> The Supreme Court affirmed the decision of the Division Bench, upholding the modified award by the High Court, confirming the existence of a valid ... - Issues:1. Existence of a valid contract with an arbitration clause.2. Validity of the award made by the arbitrator.3. Setting aside the award under Section 30 of the Arbitration Act, 1940.4. Quantum of payment as per the award.5. Challenge to the decision of the High Court and the arbitrator regarding the contract and arbitration agreement.6. Justification of damages awarded by the arbitrator.7. Correction of errors in the arbitration proceedings.8. Reduction of post-decree interest rate.Issue 1: The dispute arose from an award made by the arbitrator based on a reference under the Arbitration Act, 1940, where the appellant initially disputed the existence of an arbitration clause but later agreed to the appointment of an arbitrator. The sole arbitrator found a valid contract with an arbitration clause and directed payment from the appellant, leading to a challenge in the High Court.Issue 2: The High Court, after hearing the appeal, modified the award by reducing the amount payable by the appellant and upheld the existence of a concluded contract with an arbitration clause. The Division Bench affirmed the decision, leading to the appellant filing a special leave appeal before the Supreme Court.Issue 3: The appellant challenged the decision of the High Court and the arbitrator regarding the existence of a concluded contract and the arbitration agreement. The respondent argued that the findings were based on the available materials and circumstances, not amenable to correction under Section 30 of the Act.Issue 4: The senior counsel for the appellant contested the damages awarded by the arbitrator and the decision regarding the existence of a concluded contract and arbitration agreement. The respondent's counsel defended the arbitrator's findings and the validity of the award.Issue 5: The Supreme Court examined the materials presented by the appellant to show the absence of a concluded contract and an arbitration clause. The respondent argued that the arbitrator's findings were correct based on the available evidence.Issue 6: During the hearing, the Court highlighted the potential for prolonged litigation if the arbitration agreement was deemed non-existent. The appellant sought a reduction in post-decree interest, which the Court considered based on the circumstances and reduced to seven and a half per cent per annum.Issue 7: The Court confirmed the decision of the Division Bench upholding the modified award by the High Court, reducing the post-decree interest rate from eleven per cent to seven and a half per cent per annum.Issue 8: The Court directed the parties to bear their respective costs and disposed of the appeal on the revised terms, emphasizing the importance of maintaining commercial relationships despite legal disputes.
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