Contractual bar on variation, interest and consequential claims rendered the dispute non-arbitrable and defeated appointment of an arbitrator.

The contractual bar on claims for variation, interest and consequential reliefs was given effect by reading the general conditions with the special conditions, which expressly overrode any conflicting terms. Claims arising from variation in contract value were treated as outside arbitral reference because the contract said no such claim or compensation would be entertained. The interest claim was also barred because the contract provided that no interest would be payable on amounts due under it. Claims for profit, mental agony, harassment and litigation charges, being consequential to the barred claims, were held not to survive independently for reference, and no arbitrator was appointed.

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Issues: Whether an arbitrator could be appointed under Section 11(6) of the Arbitration and Conciliation Act, 1996 when the contract barred claims for variation, interest, and consequential reliefs.

Analysis: The contractual scheme was examined by reading the general conditions together with the special conditions. The special conditions expressly stated that no claim would be entertained on account of variation in contract value and that no compensation would be payable for such variation. Those conditions were treated as overriding the general conditions, with the result that claims based on variation were held to be outside arbitral reference. The claim for interest was also found barred because the contract provided that no interest would be payable on amounts due under the contract. Claims for profit, mental agony, harassment, and litigation charges were held to be consequential upon the non-arbitrable claims and could not survive independently for reference.

Conclusion: The dispute was held not arbitrable to the extent claimed, and no arbitrator was appointed.

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