Summary
The Court restored the portion of an arbitral award relating to the Bina project while leaving the remainder set aside. The reference and agreement concerned that project alone, so the arbitrator exceeded the reference by deciding claims under other contracts, including those of sister concerns. That excess did not justify extinguishing the authorised Bina award of Rs.5,99,158. Any withdrawn deposit exceeding that sum with eight per cent annual interest from the award to the deposit date had to be returned.
Issues
- Whether the arbitrator could decide claims under projects and sister-concern contracts beyond the Bina reference.
- Whether the valid Bina component could survive despite the excess of jurisdiction elsewhere in the award.
Held
- The application for appointment and the agreement produced concerned construction at Bina alone. The arbitrator was required to decide that dispute, and exceeded jurisdiction by awarding claims relating to other projects and contractors, even if they were sister concerns. Setting aside those components was justified. (¶¶ 2, 5)
- The High Court went too far in setting aside the entire award. The Bina component fell within the reference and was confirmed at Rs.5,99,158, while the award concerning the other projects remained set aside. (¶¶ 6, 7)
- If the appellant had withdrawn more from the interim deposit than Rs.5,99,158 together with eight per cent annual interest from the award date until the deposit, the excess was to be returned to the respondent. The repayment direction depended on excess having been deposited and withdrawn. (¶ 7)
Result
Appeal partly allowed without costs. The Bina-project award of Rs.5,99,158 was confirmed; the other project awards remained set aside, with return of any withdrawn excess over the specified principal-and-interest amount.