U.O.I vs M/S Greaves Ltd
2009 Latest Caselaw 2552 Del

*      IN THE HIGH COURT OF DELHI AT NEW DELHI


+                     FAO(OS) 499/2006

%                                           Decided on : 9th July, 2009


       U.O.I                         ..... Appellant
                               Through:       Ms. Geeta Sharma, Advocate with
                                              Ms. Maneesha Dheer, Adv.

                      versus


       M/S GREAVES LTD                      ..... Respondent
                               Through:     Mr. V.K. Aggarwal, Advocate

       CORAM:
       HON'BLE MR. JUSTICE MUKUL MUDGAL
       HON'BLE MR. JUSTICE NEERAJ KISHAN KAUL


1.     Whether the Reporters of the local newspapers be allowed to see the
       Judgment? No
2.     To be referred to the Reporter or not? No
3.     Whether the Judgment should be reported in the Digest? No

                               J U D G M E N T (ORAL)

MUKUL MUDGAL, J.

1. This appeal challenges the judgment dated 3rd April, 2006 passed by the

learned Single Judge in which appeal, while referring claim nos. 1, 2(b), (c), 3

and 4 to 7 for fresh adjudication by the Arbitrator, the learned Single Judge

confirmed claim nos. 2(a), 3 and 8. The main arguments before the learned

Single Judge as noted in para 3 of the impugned judgment were in respect of

claim no. 3. The claim no. 3 was said to be beyond the terms of provision of

Clause 11 of Indian Army Forms Works -2249(General Conditions of

Contract). The learned Single Judge has noted that it was an admitted position

between the parties that the contract did not prohibit the making of a non-

speaking award.

2. In our view, learned Single Judge has also rightly held that once a non-

speaking award is made, it is not open to the Court under Sections 30 and 33 of

the Arbitration Act, 1940 to go into the probabilities and possibilities of what

may have entered the mind set and thought process of the Arbitrator. While

following the law laid down by a Division Bench in AIR 1984 Delhi 365 M/s

Desh Raj and Sons V.s Union of India, the learned Single Judge declined to

entertain any objection against the claim no. 3. We have also perused the

aforesaid judgment and are satisfied that there is no getting out of the position

of law laid down by the said judgment and learned Single Judge was right in

sustaining the said claim no. 3. The interest granted by the Arbitrator was 12%

per annum as against a claim of 20.5% per annum. The Arbitrator had granted

interest up to the date of decree. The learned Single Judge directed future

interest from the date of decree till the date of realization @ 9% per annum. We

see no justifiable ground to interfere with the same.

3. We are satisfied that the impugned judgment of the learned Single Judge

does not warrant any interference by this Court and the appeal is accordingly

dismissed.

MUKUL MUDGAL, J

NEERAJ KISHAN KAUL, J JULY 09, 2009 mr