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IT IS A SETTLED POSITION OF LAW THAT AWARD UNDER SECTION 34 OF THE ARBITRATION ACT CAN BE SET ASIDE ONLY ON THE BASIS OF SPECIFIC GROUNDS CONTAINED: PUNJAB AND HARYANA HIGH COURT

This particular decision is upheld by the Punjab and Haryana High Court through the division bench of Justice Lisa Gill in the case of The Punjab State Cooperative Supply and Marketing Federation Limited v M/s B.D.S. Decor & Prefab (P) Ltd. and another (FAO-4792-2019 (O&M) )

FACTS

Appellant invited tenders for construction of first floor of Main Process Plant Building of New Markfed Canneries with pre-fabricated structure, side cladding with Galvalume sheets and PUF panels roofing at village Chuharwali, District Jalandhar. Estimated cost of the project was Rs.1,75,00,000/-. Respondent No. 1, who participated in the tender process, quoted the lowest rate which was accepted by the appellant. Respondent was informed vide letter dated 27.01.2014 for allotment of work on the quoted rates on turn key basis with total cost of Rs.1,19,20,000/-. Time limit for the work was three months, to be considered after 10th day after issuance of allotment letter. Letter dated 28.02.2014 was issued to the respondent by the appellant to the effect that the agreement had not been signed and neither performance security deposited by the said respondent.

JUDGEMENT

This Court is not to sit as a Court of Appeal and in case plausible and reasonable view has been taken by the Arbitrator on the basis of the evidence. The court was dealing with a case where appellant invited tenders for construction and tender of Respondent No. 1 was accepted but Respondent no. 1 expressed its inability to undertake the allotted work. Fresh tenders were called and the work was given on a higher rate than the one on which responded No. 1 was supposed work. Hence, the appellant suffered loss and invoked Arbitration clause. His petition under Section 34 of the Arbitration Act got rejected and the appellant preferred present appeal. ejected and the appellant preferred present appeal. The court concluded that the appellant in the instant case has failed to make out a case for setting aside the Award. Appeal being devoid of any merit was accordingly dismissed by the court.

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JUDGEMENT REVIEWED BY NAISARGIKA MISHRA

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