Union Of India vs M/S Quality Construction Co Agra Up
2024 Latest Caselaw 5529 MP

Madhya Pradesh High Court

Union Of India vs M/S Quality Construction Co Agra Up on 22 February, 2024

Author: Anand Pathak

Bench: Anand Pathak

                                                              1
                            IN     THE       HIGH COURT OF MADHYA PRADESH
                                                   AT GWALIOR
                                                       BEFORE
                                         HON'BLE SHRI JUSTICE ANAND PATHAK
                                              ON THE 22 nd OF FEBRUARY, 2024
                                           ARBITRATION APPEAL No. 309 of 2023

                           BETWEEN:-
                           UNION OF INDIA THROUGH EXECUTIVE ENGINEER
                           GWALIOR PROJECT DIVISION, CPWD NEAR KV-5
                           SHASTRI NAGAR THATIPUR, GWALIOR (MADHYA
                           PRADESH)

                                                                                            .....APPLICANT
                           (BY SHRI PRAVEEN KUMAR NEWASKAR - ADVOCATE)

                           AND
                           M/S QUALITY CONSTRUCTION CO. AGRA AGRA (UTTAR
                           PRADESH)

                                                                                         .....RESPONDENT
                           (BY SHRI PRASHANT SHARMA - ADVOCATE)

                                 This appeal coming on for admission this day, th e court passed the
                           following:
                                                               ORDER

1. The present appeal under Section 37 of the Arbitration and

Conciliation Act, 1996 (hereinafter referred to as "the Act") taking exception to the order dated 19-09-2023 passed in MJC No.AV/22/2021 by the Commercial Court & Commercial Appellate Court, Gwalior whereby the objections filed by the appellant against the arbitral award dated 27-01-2021 passed by the Arbitrator has been rejected.

2. Counsel for the appellant raised all the grounds as available to him in accordance with law. According to him, appellant raised three grounds; (i)

award is against the Public Policy, (ii) amount awarded has travelled beyond the

terms of contract and (iii) terms and conditions of contract were not followed. Therefore, respondent is not entitled to get the awarded sum.

3. Learned counsel for the respondent referred order dated 10-04-2023 passed in Arbitration Appeal No.03/2014 wherein the Coordinate Bench in almost similar facts situation decided the case and held that scope of Section 37 of the Act is very limited in view of the judgment of Apex Court in the case of McDermott International Inc. Vs. Burn Standard Co. Ltd. and others, (2006) 11 SCC 181 and dismissed the appeal preferred by the appellant - Union of India.

4. At this stage, learned counsel for the appellant could not dispute

passing of such order as Shri Newaskar appeared in the said appeal, however he tried to distinguish the case.

5. Considering the rival submissions and going through the mandate of Apex Court in the case of McDermott International Inc. (supra) and contents of order dated 10-04-2023 passed in Arbitration Appeal No.03/2014, it appears that no case for interference is made out. Scope of Section 37 of the Act is very limited and therefore, appeal deserves dismissal.

6. Resultantly, the appeal is hereby dismissed.

(ANAND PATHAK) JUDGE Anil*