Case Note & Summary
The High Court of Gujarat heard two appeals under Section 37 of the Arbitration and Conciliation Act, 1996, filed by Madhya Gujarat Vij Company Limited (MGVCL) against the orders dated 31.03.2023 of the 4th Additional District Judge, Vadodara, dismissing applications under Section 34 to set aside an arbitral award dated 28.12.2018. The dispute arose from a contract for the supply of 3000 Pre-stressed Cement Concrete (PSC) Poles of 10 Mtrs. length. The Gujarat Electricity Board (MGVCL's predecessor) invited limited tender, and the respondents (M/s. Usha Prestressed Concrete and M/s. A.K. Patel & Co.) submitted offers. A letter of intent dated 16.06.2005 was issued for supply at a firm rate of Rs. 2425/- per pole, with the price to remain firm and no escalation during the supply period of eight months. The work order was issued on 06.01.2006, altering the supply period to twelve months or total supply of 3000 poles, whichever later, with a flexible delivery schedule as per the company's instructions. The respondents alleged that despite repeated requests and readiness to supply, the appellant did not lift any poles until 31.12.2007, and only 437 poles were lifted by 2009-2010, causing financial loss. The respondents requested price variation/labour escalation and invoked arbitration. The sole arbitrator allowed some claims. The appellant filed Section 34 applications, which were dismissed, leading to the present appeals. The Division Bench reserved judgment on 09.12.2025 and pronounced the judgment on 30.01.2026. The court noted the contract terms, the work order clauses on price, delivery schedule, and penalty. The text of the judgment was not fully provided, and the court's final decision was not included in the given material.
Issue of Consideration
RFIRST APPEAL NO. 3732 of 2023
Case Details
2026 LawText (GUJ) (01) 432
R/First Appeal No. 3732 of 2023 and R/First Appeal No. 3804 of 2023
Justice Sunita Agarwal, Justice D.N. Ray
Mr. Maulik G. Nanavati, Mr. Prashanth S Undurti
Madhya Gujarat Vij Company Limited
M/s. Usha Prestressed Concrete and M/s. A.K. Patel & Co.
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Nature of Litigation
Appeals under Section 37 of the Arbitration and Conciliation Act, 1996 against the orders of the District Court dismissing applications under Section 34 to set aside an arbitral award.
Remedy Sought
The appellant sought setting aside of the arbitral award and the orders of the District Court upholding it.
Filing Reason
The appellant was aggrieved by the arbitral award dated 28.12.2018 which awarded claims in favor of the respondents contrary to the contract terms, and the District Court's refusal to set it aside.
Previous Decisions
Arbitral award dated 28.12.2018; Commercial CMA Nos. 70 and 71 of 2022 decided on 31.03.2023 by the 4th Additional District Judge, Vadodara, dismissing the Section 34 applications.
Submissions/Arguments
The appellant's counsel argued that the work order dated 06.01.2006 provided that no price variation/labour escalation was allowed, and that the delivery schedule was flexible, requiring supply as per the instructions of the company, thus no breach occurred.
The respondents claimed that despite readiness and repeated requests, the appellant failed to lift poles, causing financial loss, and that the arbitrator correctly awarded damages.
Judgment Excerpts
the price shall remain firm till the completion of the entire order quantity
Penalty for Late Delivery: The contractor shall maintain the delivery as per delivery schedule of 500 Nos. of Ready-made PSC Poles per month or as specified by the MGVCL for contractual period.
Procedural History
05-03-2005: Gujarat Electricity Board invited limited tender; 16-06-2005: Letter of intent issued; 06-01-2006: Work order issued; 28-12-2018: Arbitral award passed; 2022: Section 34 applications (Commercial CMA Nos. 70 and 71) filed; 31-03-2023: District Court dismissed Section 34 applications; 2023: Appeals under Section 37 filed; 09-12-2025: Appeals reserved for judgment; 30-01-2026: Judgment pronounced.
Acts & Sections
- Arbitration and Conciliation Act, 1996: 34, 37
