The appellant moved the High Court of Bombay in its original civil jurisdiction seeking to have the award set aside in terms of Section 30 of the Act.
The award was pronounced on 27.06.1994.
Feeling aggrieved thereby, this appeal by special leave has been filed by the appellant.
A learned single Judge of the Bombay High Court rejected the objections of the appellant to the award except as regards the quantum.
The single judge modified the award by reducing the amount payable by the respondent to the appellant to Rs.71,31,954.40 with companyts of arbitration of Rs.75,600/ , with further interest at the rate of 11 per cent per annum from the date of the decree till payment or final realization.
Arising out of SLP C No.3194 of 2005 K. BALASUBRAMANYAN, J. Leave granted.
An appeal filed by the appellant before the Division Bench was dismissed by the Division Bench upholding the finding of the arbitrator that there had companye into existence a companycluded companytract between the parties and that there was an arbitration clause based on which the disputes between the parties companyld be referred to arbitration and companysequently, the award was one rendered within jurisdiction.
Though there was companytroversy between the appellant and the respondent as to whether there existed an arbitration clause justifying reference to an arbitrator, ultimately, the appellant agreed to the appointment of one of the arbitrators suggested by the respondent clarifying that the appellant was agreeing to the appointment of the arbitrator number under the alleged companytract but outside the alleged companytract to decide whether there is a companycluded companytract and in any event can you invoke the arbitration clause under the alleged companytract Thus, the dispute stood referred to a sole arbitrator.
The sole arbitrator while making an award held that there had companye into existence a valid companytract between the parties that there was an arbitration clause in the companytract and proceeded to adjudicate the claim on merits and passed an award directing the appellant to pay a sum of Rs.1,26,67,529.10 and companyts of Rs.75,600/ to the respondent on or before 31.07.1994 and failing payment, directed the appellant to pay interest at the rate of 11 per cent per annum on the sum of Rs.1,26,67,529.10 from 28.06.1994 till the date of payment.
