Power to grant interim relief is vested with the Arbitration Tribunal

Power to grant interim relief is vested with the Arbitration Tribunal

Harshit Sharma | Amity Law School, Madhya Pradesh | 11th January 2020

State of Gujarat V/s. Amber Builders Civil Appeal No. 8307/2019

FACTS OF THE CASE

  1. The respondent contractor was awarded a ‘works contract’ for strengthening a section of National Highway under work order dated 31.07.2007. 
  2. The road was damaged and, according to the contractor, this had occurred due to heavy rains. The State called upon the contractor to repair the damaged portion, and accordingly the same was done, after the rain stopped. 
  3. The case of the contractor is that in terms of the contract, the contractor was only liable to remove defects for a period of 3 years which ended on 30.04.2011. On 10.09.2012, the contractor, wrote   a   letter   to   the   State   to   release   the   security amount. This amount was accordingly released vide letter dated 10.09.2012. The State issued letter dated 11.11.2014 calling upon the contractor to pay a sum of Rs.1,09,00,092/­.   This claim was based on the premise that the contractor had not carried out the road repair work in accordance with the contract. The present appellant- State threatened to withhold the payments from the security deposits and bills of other pending works. 
  4. In respect of which the Writ Petition was preferred before the High Court of Gujarat, which was allowed vide order dated 18.02.2016 while setting aside the communication letter dated 11.11.2014 of the State. 
  5. The impugned judgment of WP was challenged before the Hon’ble Supreme Court vide the present SLP before the same. 

ISSUES RAISED

  1. Whether the Gujarat Public Works Contract Disputes Arbitration Tribunal constituted under Section 3 of the Gujarat Public Works Contracts Disputes Arbitration Tribunal Act, 1992 has jurisdiction to make interim orders in terms of Section 17 of the Arbitration and Conciliation Act, 1996? 
  2. Whether the Tribunal was to be approached while not invoking the extraordinary writ jurisdiction of the High Court, when the existing remedy already persists?  

RULING OF THE COURT/ THE COURT HELD THAT

The appeals were allowed in the favour of the appellants, directing the respondent to approach the Tribunal within 2 months from the date of the judgment and thereby the tribunal shall not dismiss the claim on the issue of the limitation. Hon’ble Apex Court, held and observed the following: 

  1. “On a conjoint reading and a careful analysis of the Acts together, we are of the view that insofar as the powers vested in the Arbitral Tribunal in terms of Section 17 of the Arbitration & Conciliation Act are concerned , such powers can be exercised by the Tribunal constituted   under   the   Gujarat   Act   because   there   is   no inconsistency in these 2 Acts as far as grant of Interim relief is concerned.  This power is already vested in the tribunal under the Gujarat Act, Section 17 of the Arbitration & Conciliation Act complements these powers and therefore it cannot be said that the provision of Section-17 of the Arbitration Act is inconsistent with the Gujarat Act.”
  2. “…. reliance was made upon the judgment of Gangotri Enterprises Limited v. Union of India & Ors. to submit that till the demand of the Government is crystallised or adjudicated upon, the Govt. cannot withhold money of the Contractor. Since this case been specifically relied upon, we are duty bound to go in the correctness of the view laid down in Gangotri Enterprises Case. the Judgment in Gangotri Enterprises is primarily based on the judgment of a two judges Bench of this Court in the Union of India v. Raman Iron Foundry.”
  3. “The judgment in Raman Iron Foundry, was specifically overruled on the issue in hand by a three judge Bench of this court in the case of H.M. Kamaluddin Ansari & Co.  v. Union of India. Thus, the judgment rendered in Gangotri Enterprises Limited Case is per incuriam because it relies upon the Raman Iron Foundry which has been specifically overruled by three Judge Bench H.M. Kamalliddin’s Case.”
560 315 Hshits1997
Share

Leave a Reply

Avatar

Hshits1997

Harshit Sharma Advocate is a practising lawyer at the High Court of Madhya Pradesh, Bench at Gwalior. He started his litigation practice before the Hon’ble High Court of Madhya Pradesh since August, 2020 after being enrolled with the State Bar Council of Madhya Pradesh at enrolment number MP/1228/2020. Mr. Sharma hails from a generous and morally-valued driven family. He is the second-generation lawyer in his family who has taken up the task of stepping on the foot-steps of his father and the leading criminal advocate of the Gwalior Bar Sh. Vijay Dutt Sharma, Advocate. He always valued to strike a balance between education and moral-values which he quotes to have been a reflection of his mother Smt. Kusum Sharma and possibly this magical combination of the intellectual father and caring mother sailed him through to take the beautiful and successful academic leap, in both school as well as University. To quote the glorious academic years of Mr. Sharma, it all started with he been awarded with the Soli Sorabjee Award, which is bestowed upon the Legal Studies Topper of Class-XI (CBSE) of Gwalior Glory High School, Gwalior (M.P.). Since then, it has been the blessings of his parents, sister, teachers and family members that he completed his five-year integrated law course in B.A., LL.B. (Hons.) from Amity Law School, Amity University Madhya Pradesh, Gwalior with flying colours and been the over-all topper of the course since its inception to its culmination. Mr. Sharma also had in his names to attend various national and international seminars on growing issues in the field of law and throughout his college life, he has been an active member of the Moot Court Committee and in the culminating years of his college life, he has also served as the Chairperson of the Moot Court Committee of Amity Law School, Amity University Madhya Pradesh. His experience owed from his association with top-notched institutions of the country and law offices, including National Human Rights Commission, National Judicial Academy Bhopal, Chambers of Sh. Sanjay Gupta Ji Advocate (Gwalior, M.P.), Sh. Deepak Vasant Rao Khot Ji Advocate (Gwalior, M.P.), Sh. Fuzail Ahmad Ayyubi Ji Advocate (A-O-R Supreme Court of India), Sh. Vaibhav Shrivastava Ji (Office of Sh. Vivek Tankha Ji Senior Advocate), Sh. Prashant Vaxish Advocate (Supreme Court of India) to name a few. Apart from being an avid learner and through-out student of Law, Mr. Sharma has under his name various research papers and articles published in National as well as International Journals and UGC-Approved Journals, pan India. More so, he is a constant content writer for various online blogs including the LatestLaws.com, Lawyers Club India, Legal Services India, Advocates Pedia Foundation, etc. In addition to his academic excellence, he is green-belt holder in karate and has been a district-level Judo and Table-Tennis Player for his School Team. He is fond of reading books and to pen poetries in both, English as well as Hindi language is his best hobby to spare time with.

All stories by : Hshits1997
About Author
Avatar

Hshits1997

Harshit Sharma Advocate is a practising lawyer at the High Court of Madhya Pradesh, Bench at Gwalior. He started his litigation practice before the Hon’ble High Court of Madhya Pradesh since August, 2020 after being enrolled with the State Bar Council of Madhya Pradesh at enrolment number MP/1228/2020.
Mr. Sharma hails from a generous and morally-valued driven family. He is the second-generation lawyer in his family who has taken up the task of stepping on the foot-steps of his father and the leading criminal advocate of the Gwalior Bar Sh. Vijay Dutt Sharma, Advocate.
He always valued to strike a balance between education and moral-values which he quotes to have been a reflection of his mother Smt. Kusum Sharma and possibly this magical combination of the intellectual father and caring mother sailed him through to take the beautiful and successful academic leap, in both school as well as University.
To quote the glorious academic years of Mr. Sharma, it all started with he been awarded with the Soli Sorabjee Award, which is bestowed upon the Legal Studies Topper of Class-XI (CBSE) of Gwalior Glory High School, Gwalior (M.P.).
Since then, it has been the blessings of his parents, sister, teachers and family members that he completed his five-year integrated law course in B.A., LL.B. (Hons.) from Amity Law School, Amity University Madhya Pradesh, Gwalior with flying colours and been the over-all topper of the course since its inception to its culmination.
Mr. Sharma also had in his names to attend various national and international seminars on growing issues in the field of law and throughout his college life, he has been an active member of the Moot Court Committee and in the culminating years of his college life, he has also served as the Chairperson of the Moot Court Committee of Amity Law School, Amity University Madhya Pradesh.
His experience owed from his association with top-notched institutions of the country and law offices, including National Human Rights Commission, National Judicial Academy Bhopal, Chambers of Sh. Sanjay Gupta Ji Advocate (Gwalior, M.P.), Sh. Deepak Vasant Rao Khot Ji Advocate (Gwalior, M.P.), Sh. Fuzail Ahmad Ayyubi Ji Advocate (A-O-R Supreme Court of India), Sh. Vaibhav Shrivastava Ji (Office of Sh. Vivek Tankha Ji Senior Advocate), Sh. Prashant Vaxish Advocate (Supreme Court of India) to name a few.
Apart from being an avid learner and through-out student of Law, Mr. Sharma has under his name various research papers and articles published in National as well as International Journals and UGC-Approved Journals, pan India. More so, he is a constant content writer for various online blogs including the LatestLaws.com, Lawyers Club India, Legal Services India, Advocates Pedia Foundation, etc.
In addition to his academic excellence, he is green-belt holder in karate and has been a district-level Judo and Table-Tennis Player for his School Team.
He is fond of reading books and to pen poetries in both, English as well as Hindi language is his best hobby to spare time with.

Consult
Leave this field blank
SUBSCRIBE only if you like the content!