Case Note & Summary
The appeal before the High Court of Judicature at Madras arose out of a construction contract dispute between Tamil Nadu Housing Board (the employer) and M/s.Annamar & Co. (the contractor). The contractor had successfully bid for a tender and was awarded a work order on 24.02.1998, followed by a lump sum agreement dated 05.03.1998 for the construction of 21 MIG I duplex houses, 21 HIG II houses, and 22 MIG houses at Namakkal. Disputes arose when the site was not handed over in time, and the contractor alleged that only a part of the work could be executed. The contractor sought re-working of the cost of construction, which the Board opposed, insisting that the original costs be adhered to and demanding a specific undertaking from the contractor before handing over the site. The contractor filed W.P.No.11628 of 2000 seeking a mandamus directing the Board to hand over possession, and after court intervention, the site was handed over and construction commenced. Further difficulties were encountered due to alleged non-supply of cement and materials by the Board, leading to another writ petition, W.P.No.15256 of 2002, which was disposed on 06.12.2004 with a direction to invoke Clause 3 of the agreement. The contractor then sought appointment of an arbitrator before the Principal District Judge, Namakkal, which was dismissed and later upheld in CRP.No.517 of 2007. Subsequently, in review, this Court on 19.12.2009 directed the contractor to move a petition under Section 11 of the Arbitration and Conciliation Act, 1996. An arbitrator was appointed and after hearing both sides, an award was passed on 03.11.2017. Tamil Nadu Housing Board filed O.P.No.510 of 2018 challenging the award, which was dismissed by the learned Single Judge on 03.01.2020, finding no merit in the Board’s contentions. Aggrieved, the TNHB preferred the present Original Side Appeal under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996. The court heard detailed submissions from both sides, reserved judgment on 13.02.2025, and delivered it on 24.03.2025. The provided excerpt does not contain the court’s analysis, findings, or final decision on the appeal, and only sets out the factual background and procedural history leading up to the intra-court appeal.
Headnote
A) Arbitration Law – Appeal under Section 37(1)(b) of Arbitration and Conciliation Act, 1996 – Challenge to Arbitral Award – The employer’s original petition under Section 34 to set aside the arbitral award was dismissed by the Single Judge finding no merit – The intra-court appeal was filed under Section 37 seeking to set aside that order (Paras 1,8).
Issue of Consideration
Whether the order dated 03.01.2020 passed by the Single Judge in O.P.No.510 of 2018, dismissing the challenge to the arbitral award dated 03.11.2017, is liable to be set aside under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996
Law Points
- Arbitration and Conciliation Act 1996
- Section 37(1)(b)
- Section 34
- Section 11
- appointment of arbitrator
- challenge to arbitral award
- intra-court appeal
- construction contract
- cost escalation due to delay
Case Details
2025 LawText (MAD) (03) 30
Dr. Justice Anita Sumanth, Justice C. Kumarappan
Mr. M.K. Kabir, Senior Counsel for Mr. C. Kalaichelvan (for appellants); Mr. S. Parthasarathy (for respondent)
1. The Managing Director, Tamil Nadu Housing Board, 2. The Chief Engineer, Tamil Nadu Housing Board, 3. The Superintending Engineer, Tamil Nadu Housing Board, Salem Circle, 4. The Executive Engineer, Tamil Nadu Housing Board, Salem Circle
M/s.Annamar & Co., represented by its Managing Partner, 1.L.Subramani and 2.Indra Prakash
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Nature of Litigation
Original Side Appeal under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996 against an order of a Single Judge dismissing a petition under Section 34 to set aside an arbitral award arising from a construction contract dispute.
Remedy Sought
The appellants (Tamil Nadu Housing Board) sought to set aside the order dated 03.01.2020 passed in O.P.No.510 of 2018, thereby seeking to set aside the arbitral award dated 03.11.2017.
Filing Reason
The Single Judge had dismissed the appellants' original petition challenging the arbitral award, finding no merit in the challenge; the appeal was filed to challenge that dismissal.
Previous Decisions
The Single Judge of the High Court, by order dated 03.01.2020 in O.P.No.510 of 2018, dismissed the petition filed under Section 34 of the Arbitration and Conciliation Act, 1996, upholding the arbitral award dated 03.11.2017.
Issues
Whether the order dated 03.01.2020 passed by the Single Judge in O.P.No.510 of 2018, dismissing the challenge to the arbitral award, is liable to be set aside under Section 37(1)(b) of the Arbitration and Conciliation Act, 1996.
Submissions/Arguments
Detailed submissions were made by both sides, but the specific contentions are not recorded in the provided excerpt.
Judgment Excerpts
The learned Judge, by order dated 03.01.2020 has considered the submissions of the parties in extenso, ultimately finding no merit in the stand of the TNHB seeking intervention in award dated 03.11.2017. Hence this intra Court appeal under Section 37 of the A and C Act.
Procedural History
The respondent contractor was awarded a work order on 24.02.1998 and entered into a lump sum agreement on 05.03.1998 for construction of houses. Disputes arose over delayed site handover and cost reworking. The contractor filed W.P.No.11628 of 2000 for mandamus to hand over site; possession was handed over after court direction. Further material supply issues led to W.P.No.15256 of 2002, disposed on 06.12.2004 directing invocation of Clause 3 of the agreement. The contractor filed a petition for appointment of arbitrator before Principal District Judge, Namakkal, dismissed and upheld in CRP.No.517 of 2007. In review, the High Court on 19.12.2009 directed the contractor to move a Section 11 petition. An arbitrator was appointed and an award was passed on 03.11.2017. Tamil Nadu Housing Board filed O.P.No.510 of 2018 under Section 34, which was dismissed by the Single Judge on 03.01.2020. The present Original Side Appeal under Section 37(1)(b) was filed against that order. The appeal was heard and judgment reserved on 13.02.2025, delivered on 24.03.2025.
Acts & Sections
- Arbitration and Conciliation Act, 1996: Section 37(1)(b), Section 34, Section 11
- Letters Patent: Section 15
- Original Side Rules: Order XXXVI Rule 1
