VidhiSangh

Supreme Court of India · 03/10/2017

SRI CHITTARANJAN MAITY versus UNION OF INDIA

[2017] 11 S.C.R. 722 · 2017 INSC 987

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Summary

A railway contractor challenged an appellate order setting aside an arbitral award on a no-claims-certificate objection first raised in appeal. The Court rejected that belated objection and sustained the principal award, but disallowed interest under the contractual prohibition. Although the contractor had already withdrawn more than the principal, recovery of the excess was expressly prohibited on the case’s facts.

Issues

  1. Whether a no-claims-certificate arbitrability objection could first be entertained in appeal after arbitration and Section 34 proceedings.
  2. Whether the contract barred pre-reference and pendente lite interest under the 1996 Act.
  3. How sums already withdrawn should be treated.

Provisions considered

Held

Result

Appeals partly allowed without costs: principal award sustained, interest disallowed, and recovery of the excess amount already withdrawn by the contractor prohibited.

Judgment PDF: Supreme Court of India, [2017] 11 S.C.R. 722.