Case Note & Summary
The petition under Section 34 of the Arbitration and Conciliation Act, 1996 was filed by CMC Limited (original respondent in the arbitration) impugning the arbitral awards dated 7 February 2008 and 3 November 2009. The dispute arose out of an agreement dated 23 October 1992 between CMC Limited and Unit Trust of India for an Information Technology Upgrade Project comprising various application groups including AG-2. Unit Trust of India unilaterally abandoned the AG-2 project and demanded a refund of amounts paid. The arbitral tribunal was constituted after an application under Section 11. In its award dated 3 November 2009, the tribunal directed CMC Limited to pay Rs.83,45,500 with interest at 9% p.a. to Unit Trust of India and awarded costs; the tribunal also rejected the counter claims made by CMC Limited. The earlier order dated 7 February 2008 under Section 16 partly upheld the tribunal’s jurisdiction over the counter claims. CMC Limited challenged both awards in the present petition, arguing that the contract was not indivisible and that the abandonment of one module did not affect others. The petition was heard and judgment reserved. [The provided text is incomplete; the court’s analysis and final decision are not included.]
Issue of Consideration
ARBITRATION PETITION NO.275 OF 2012
