Citation : 2026 Latest Caselaw 289 Mani
Judgement Date : 4 February, 2026
SHAMURAILATPAM Digitally signed by
SHAMURAILATPAM SUSHIL SHARMA
SUSHIL SHARMA Date: 2026.02.04 16:59:52 +05'30'
Sl. Nos. 5-6
IN THE HIGH COURT OF MANIPUR
AT IMPHAL
Arb.A. No. 1 of 2022
MWC Market Services Pvt. Ltd.
Appellant
Vs.
State of Manipur and 4 others
Respondents
With MC(Arb.A.) No. 1 of 2022
BEFORE
HON'BLE THE CHIEF JUSTICE MR. M. SUNDAR
HON'BLE MR. JUSTICE AHANTHEM BIMOL SINGH
ORDER
(Order of the court was made by M. Sundar, CJ)
04.02.2026 [1] Read this in conjunction with and in continuation of earlier
proceedings.
[2] In the hearing today, Mr. S. Bhandari, learned counsel along
with Mr. K. Pradeep, learned counsel on record for sole appellant continued
his submissions. As regards respondents (State), Mr. G.N. Sahewalla,
learned senior counsel instructed by learned State counsel on record Mr.
Debojit Senapati along with Mrs. Nongthongbam Elizabeth are before this
Court.
[3] Mr. Bhandari stated with clarity and specificity that though the
entire arbitral award was assailed before the Section 34 Court, he would now
abridge his campaign (against the arbitral award and the Section 34 court
order) in the captioned appeal and restrict the same to compensation
mulcted on the contractor vide arbitral award, being compensation in a sum
of Rs. 10,19,48,111/-.
[4] To be noted, the captioned appeal is being heard out on the
above basis on the aforementioned short point.
[5] In the course of hearing, it came to the light that discussion
and dispositive reasoning qua aforementioned short point is articulated in
paragraphs 150 to 162 of the arbitral award. The undisputed facts are that
there was a modification on 20.11.2002 i.e., modification to original contract
by which sub-clause 4 was added to Clause X of the original contract (to be
noted, Clause X of the original contract is captioned 'Indemnity') wherein
and whereby the first draw should have been held by the contractor within
6 (six) months from 20.11.2002 i.e., by 20.05.2003. There is no disputation
or contestation (factually) that (a) the first draw was not held on or before
(20.05.2003) and (b) the last date 20.05.2003 was extended from time to
time and vide the last extension, the last date was frozen as 01.12.2003.
[6] It is also to be noted that the Arbitral Tribunal has mulcted the
contractor with compensation inter-alia by construing clause X.4 of the
original contract as a liquidated damages clause.
[7] The arguments will continue tomorrow. In the interregnum,
Registry to requisition all the records from the Court of the learned District
Judge, Imphal East pertaining to Arbitration Case No. 1 of 2012/10 of
2013 (MWC Market Services Pvt. Ltd. -Versus- State of Manipur
and 5 Others).
[8] Registrar (Judicial) is directed to send special messenger to the
Section 34 Court right away and get the entire records today evening so that
the same is available in the hearing tomorrow.
[9] List as part-heard matter tomorrow.
[10] List on 05.02.2026.
JUDGE CHIEF JUSTICE
Sushil
PS :- I. Upload forthwith.
II. All concerned to act/remain bound on this order on being uploaded in official website of High Court.
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