Case Note & Summary
The High Court of Bombay heard cross-petitions challenging an arbitral award dated 18 June 2020 in a dispute between Solapur Municipal Corporation and a joint venture contractor (S.M.C.-G.E.C.P. Ltd). The arbitrator had set aside penalties imposed on the contractor, terminated the contract, and blacklisted the contractor, awarding Rs. 32,15,94,780/- with interest. The Municipal Corporation challenged the entire award, while the contractor challenged limited aspects but later withdrew its petition. The Court examined whether the award suffered from patent illegality or was contrary to public policy under Section 34 of the Arbitration and Conciliation Act, 1996. After reviewing the arbitrator's findings on evidence, contractual terms, and procedural fairness, the Court dismissed the Municipal Corporation's petition, upholding the award. The contractor's cross-petition was not pressed, leaving only the Municipal Corporation's challenge for decision.
Headnote
The High Court of Judicature at Bombay dismissed Commercial Arbitration Petition No. 444 of 2024 filed by Solapur Municipal Corporation challenging an arbitral award dated 18 June 2020 -- The award had set aside four penalty orders, termination of contract dated 9 December 2013, and blacklisting order dated 11 April 2014 -- The arbitrator awarded Rs. 32,15,94,780/- with interest to the contractor -- The Court held that the arbitrator's findings were based on evidence and contractual interpretation -- The Court found no patent illegality or violation of public policy under Section 34 of the Arbitration and Conciliation Act, 1996 -- The contractor's cross-petition (CARBP/252/2024) was not pressed -- The Municipal Corporation's challenge to the award was rejected
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Issue of Consideration: The Issue of Consideration was whether the arbitral award dated 18 June 2020, which set aside penalties, termination of contract, and blacklisting orders while awarding compensation to the contractor, suffered from any patent illegality or was contrary to public policy under Section 34 of the Arbitration and Conciliation Act, 1996
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Final Decision
The High Court dismissed Commercial Arbitration Petition No. 444 of 2024 filed by Solapur Municipal Corporation, upholding the arbitral award dated 18 June 2020. The contractor's cross-petition (CARBP/252/2024) was not pressed.
