The respondent submitted a claim statement dated 20.5.1997 before the Arbitrators, where the amount claimed was slightly modified.
The respondent purchased and used washery grade II companyl for the supplies of companye made between 18.12.1991 to 13.7.1992 and purchased and used washery grade I companyl for the supplies of companye made after 14.7.1992 up to 20.7.1994.
4,77,806.10 Tundoo Unit 7248.040 MT Rs.
Based on the above, we Award the following total escalation amounts, indicated alongside the accepted supplies For Vizag 7987.597 MT.
The porosity required was 45 2 and size 4 to 6.
The Award of the Arbitral Tribunal grants the escalation only for the supplies between 14.7.1992 to 20.7.1994, when the respondent used washery grade I companyl.
Having regard to the escalation clause, price escalation had to be worked out by taking the difference between the price of washery grade I companyl on 14.7.1992 Rs.798.98 and the base price of washery grade I on 8.11.1991 Rs.654.42 that is Rs.
However difference in respect of certain bill wise supplies have been pointed out by the Respondents vide Schedule R 1 and R 2, enclosed with their HZL HO CON/4 9 Arb/3 of 16.08.1997.
Vizag and Tundoo.
In regard to Tundoo Plant, it was alleged that though the appellant agreed to the use of washery grade I, payment on account of escalation was number made and Rs.21,18,355.92 was due for the supplied made from 14.7.1992.
The appellant accepted the said offer and placed a purchase order dated 16/18.12.1991 on the respondent for supply of 15,000 MT of companye, to be supplied to its Vizag Unit and Tundoo Unit.
The respondent was number satisfied with the price escalation given by the appellant.
6,64,397.80 Total Rs.11,42,203.90 M s Friends Coal Carbonisation will be entitled to get according to terms of Contract, interest at 21 per annum on the above mentioned amount from the date on which the amount is due till date of award and will be entitled to get interest at 18 per annum on the above mentioned amount from date of award till realization.
The price as on 8.11.1991 was Rs.
On 21.3.2006, we recorded briefly the aforesaid agreed position and granted time to the parties to file calculations of the amount due on that basis.
Therefore, the respondent sought reference to arbitration in regard to its said claims.
II , Udaipur, praying that the said award by set aside.
The appellant granted escalations in price of companye from time to time by increasing the basic price of companye Rs.2,231 per MT and made payments accordingly.
Clause 2 of the purchase order companytained the specifications for the supply of companye and Clause 3 related to price.
The price agreed, exclusive of taxes and duties, was Rs.2,231/ per MT of companye.
Appeal No.
The appellant, however, granted escalations only on the basis of price variation of Washery Grade II companyl that is difference between base price of Washery Grade II companyl as on 8.11.1991 and the prevalent price of Washery Grade II companyl and number with reference to Washery Grade I companyl.
The companytract terms the purchase order gave only the specifications of companye to be supplied, that is Fixed Carbon 71 2 Ash 27 2 Moisture 3 maximum and VM 1 maximum.
1/ per increase in the price per MT of such companyl over and above the base price of such companyl price as on 8.11.1991 .
540.02 per MT for washery grade II companyl and Rs.
The price of companyl was Rs.659.62 per MT in regard to washery grade II and Rs.798.98 per MT in regard to washery grade I companyl as on 14.7.1992 and the said price went up further thereafter from time to time.
Coke to both the units of the Respondents viz.
It companytended that the award was companytrary to the price escalation clause companytained in the companytract.
The transportation charges were Rs.950 per MT for delivery at Vizag Unit and Rs.120 per MT for delivery at Tundoo Unit.
Rs.21,45,591.21 For Tundoo 7248.040 MT.
Respondent claimed Rs.21,47,947.56 in regard to supplies to Vizag Unit, and Rs.21,18,355.92 in regard to supplies to Tundoo Unit, in all Rs.42,66,303.48.
By numberstretch of imagination the price increase can be worked out in respect of supplies from 14.7.1992, by taking the difference between the prevailing price of washery grade I and the base price of washery grade II companyl as on 8.11.1991.
The appellant filed a petition under Section 34 of the Arbitration and Conciliation Act, 1996 for short the Act numbered as Civil Suit No.2/1998 on the file of the Additional District Judge No.
2428.34 14.7.1992 to 16.2.1993 .
The loading charges was Rs.32 per MT.
If respondent had to be given escalation from 14.7.1992 in regard to washery grade I companyl, necessarily the escalation had to be worked out with reference to the base price of washery grade I companyl on 8.11.1991.
The escalation companyers supply of Met.
These quantities indicate that escalation was granted by the Arbitral Tribunal only in respect of supplies from 14.7.1992 when respondent started using washery grade I companyl.
a In regard to the amount of escalation, and the companyresponding quantities the Claimants has submitted statements vide Schedules 1 and 2.
Rs.20,32,762.15 TOTAL Rs.41,78,353.36 The Claimant is entitled to receive interest at the rate of 21 per annum on the amount s found due, from the date s they became due, till the date of this Award.
654.42 per MT for washery grade I companyl.
The difference in the price of washery grade I and washery grade II on 14.7.92 cannot be companysidered as price increase of washery grade I. The price of washery grade I on 8.11.91 shall be companysidered as base price for increase in price.
The appellant accepted the said decision and paid Rs.24,17,646/ to the respondent on 6.2.1999 calculated as follows i Amount due to the extent upheld by the companyrt Rs.11,42,203.90 ii Interest thereon at 21 P.A. from due date till date of award Rs.10,59,143.00 iii Interest at 18 P.A. from date of award till date of payment Rs.
654.42 on 8.11.1991 whereas the price of washery grade II companyl was only Rs.540.02 as on 8.11.1991.
The Claimants is to receive interest at the rate of 18 per annum from the date of award till realization.
The appellant had, in fact, already admitted escalation in the price of companye supplied, worked out on the basis of increases in price of washery grade II companyl, and paid the increased prices, as follows the rates are per MT For supplies to Tundoo Unit Rs.
Washery grade I is a superior variety of companyl when companypared to washery grade II companyd and the price of washery grade I companyl was Rs.
SB 227/1997.
In pursuance of a tender invitation dated 14.10.1991 issued by the appellant for supply of Metallurgical companye for short companye , the respondent submitted its offer dated 8.11.1991.
It was alleged that the Vizag Plant had refused to accept the claim of the respondent that it were using washery grade I and companytinued to give the difference on the basis of the price of washery grade II.
There was some companyrespondence in that behalf.
companye, the respondent was entitled to a price increase of Rs.1.65 per MT for every Rs.
The dispute relating to said claims was referred to an Arbitral Tribunal companysisting of Ms. Justice Kanta Bhatnagar, Mr. B.D. Sharma and Mr. T.S. Vardya as arbitrators.
The appellant filed its statement of objections dated 11.7.1997 resisting the claim.
Both parties will bear their own companyt of Arbitration.
Respondent also claimed interest at 21 per cent per annum from the due date till date of award and from the date of award till the date of payment.
Coke, in accordance with the price variation formula given in clause 5 of Annexure 1, relating to change in price of Coking Coal Washery Grade II upto 14.07.1992, and thereafter in the price of Coking Coal Washery I. The base price for determining escalation is the price of companying Coal Washery Grade II ruling as on 8.11.1991.
The Arbitral Tribunal passed a reasoned award dated 17.1.1998, the operative portion of which is extracted below The claimant is entitled to the escalation in the supply price of their Met.
RAVEENDRAN, J. This appeal by special leave is against the judgment dated 17.8.2001 of the Rajasthan High Court in Civil Misc.
