TaxTMI 
TaxTMI 
2013 (7) TMI 54
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....de an arbitral Award of a Sole Arbitrator dated 4 November 2009. 2. The Appellant floated a global tender for six Reactors with S.S. Clading for a Green Fuels Project. The first Respondent submitted a bid. A Purchase Order was placed by the Appellant upon the first Respondent on 1 June 2005. The Purchase Order provided that the contract value would be Rs.14,50,10,000/-. The contract envisaged that the price which was mentioned in the Purchase Order would be firm; the relevant condition being as follows:- "i) The price mentioned in this Purchase Order shall remain firm and fixed till complete execution of this order." Disputes between the parties were referred to arbitration. Claim no.1 of the first Respondent related to an amount o....
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....cording to the Appellant, since the C.I.F. value of the imported components was less than what was stipulated in the contract, it was entitled to withhold the customs duty element. 7. The relevant conditions governing the contract are to be found in clause 6 of the Statement of Agreed Variations to General Purchase Conditions which reads as follows:- "a. Quoted prices are inclusive of built in import content of maximum CIF amount of Rs.816 Lakhs based on merit rate of Custom duty including custom duty etc. thereon. Supplier to provide item wise details within two weeks hereof. b. The quoted prices shall remain firm and fixed except statutory variation in C.D. The prices shall remain firm and fixed on account of Foreign exchange var....
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....e which was quoted under the contract was firm and fixed, it was not open to the Appellant to unilaterally make a deduction on the ground that the value of the import components was less than what was envisaged in the 8. This part of the reasoning of the Arbitral Tribunal has been affirmed by the learned Single Judge. 9. The contract expressly provided that the price which was stipulated in the Purchase Order shall remain firm and fixed until the order was executed. Clause 6 stipulated that the quoted prices were inclusive of a built in import content of a maximum C.I.F. value of Rs.816 lakhs. This quoted price was to remain firm and fixed except for statutory variations in the customs duty. In the event of an increase in the rate of ....
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.... plausible view of the matter, the learned Single Judge would have been justified in declining to adopt an alternate construction in a petition under Section 34. An Arbitral Tribunal which adopts a possible view on an interpretation of the terms of a contract acts within jurisdiction. We, therefore, do not find any merit in the first point of challenge. Counter Claim : 10. The contention of the Appellant is that its Counter Claim was rejected by the Arbitrator without any reasoning. Counsel submitted that the Arbitrator in the operative part of the Award rejected the Counter Claim only on the ground that the first claim had been decided in favour of the claimant. Counsel further submitted, based on the averments in paragraph 11 of the....
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....has opted to go for arbitration, we are forced to raise Counter claim of Rs.68,60,000/- based on above calculations. This Respondent will make submissions at the time of hearing. This Respondent while submitting to reject the claims of the claimant request the Ld Sole Arbitrator to award the amount of Rs.68,60,000/- as Counter claim." The arbitral Award makes a reference to what had actually transpired during the course of the proceedings in regard to the Counter Claim, thus:- "The Respondents have briefly touched on their "Counter Claim" for Custom duty. They have stated that exact amount cannot be worked out in the absence of documentation for imported components. Respondent had stated that they are willing to pay the custom duty....