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The Bench of Justices Arun Mishra and M.R. Shah on Friday refused to interfere in an arbitral award impugned in State of Jharkhand v M/s HSS Integrated SDN stating that interference is allowed only through proceedings under Section 34 and 37 of the Arbitration and Conciliation Act 1996 and the same, before the First Appellate Court had already returned an order in favour of the respondents.

The High Court had dismissed the appeal against the arbitral award arising out of a contractual dispute in relation to a consultancy agreement over construction of six-­lane Divided Carriage Way of certain parts of Ranchi Ring Road.

Contending illegal termination of the contract, the claim of HSS Integrated SDN (original claimants) was primarily “the unpaid amount in respect of the work executed under the contract, loss of profit and over-­head charges, apart from other consequential claims arising out of termination.”

The counter-­claim, which was rejected, was filed by the petitioners­-State for reimbursement on account of unsatisfactory performance by the respondents.

The Arbitral Tribunal found the termination of contract illegal, and further allowed claim against the State to the tune of Rs. 2.10 crores.

Supreme Court noted, “the award passed by the Arbitral Tribunal can be interfered   with in the proceedings under Sections 34 and 37 of Arbitration Act only in a case where the finding is perverse and/or contrary to the evidence and/or the same is against the public policy.”

— India Legal Bureau

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