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TMI Blog2014 (10) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... essful bidder for payment of all statutory duties. The appellant-company submitted its technical and financial bids. It is contended on behalf of the appellant that the NIT contained a techno commercial bid and a separate price bid. Price bid of the appellant provided that any Excise Duty/Service taxes or any levy presently applicable or any variation or new levy in future to be reimbursed on actual basis. 4. After negotiation and acceptance of the final price offer, on 3.3.2007 respondent issued a Letter of Intent to the appellant on the terms and conditions of the NIT and other terms agreed during subsequent discussions/negotiations. Finally, on 26.3.2007 a contract was executed between the parties for re-commissioning and operation of the Surda Mine and Mosabani Concentrator Plant. Thereafter, a work order was issued on 14.4.2007 and the appellant raised its Invoices on 31.12.2007, by which reimbursement of basic excise duty and other duties payable by the appellant to the Government was sought. On refusal by the respondent to make payment in respect of excise duty and other taxes paid by the appellant relating to the work executed, the arbitration clause was invoked and the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o "base price plus 49%", respondent issued Letter of Intent on 3.3.2007 and the contract was signed between the parties on 26.3.2007. 7. Learned senior counsel contended that on 14.4.2007 Work Order was issued with its Clause 4.9, which provided for payment of taxes by the appellant. For the settlement of disputes pertaining to taxes and duties, appellant invoked clause 4.14 of NIT and sought appointment of Arbitrator where it was claimed by the appellant that price bid submitted by the appellant is exclusive of taxes and clause 4.9.1 of Work Order is inoperative and void. This claim was dismissed by the Learned Arbitrator on the ground that the clause relating to payment of taxes was denied by the appellant's representative Mr. Ahlawat on 19.1.2007 and since the work order was acknowledged, it is binding on the appellant. 8. Mr. Sharan has submitted that there had never been any negotiation with regard to the liability of payment of excise duties and taxes as the same was finally concluded to the effect that the taxes shall be liable to be reimbursed by the respondent. The negotiation was only with respect to the percentage which was finally reduced to 49%. It is submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... setting aside the arbitral award. In terms of sub-section (2) of Section 34 of the Act, an arbitral award may be set aside only if one of the conditions specified therein is satisfied. The Arbitrator's decision is generally considered binding between the parties and therefore, the power of the Court to set aside the award would be exercised only in cases where the Court finds that the arbitral award is on the fact of it erroneous or patently illegal or in contravention of the provisions of the Act. It is a well settled proposition that the Court shall not ordinarily substitute its interpretation for that of the Arbitrator. Similarly, when the parties have arrived at a concluded contract and acted on the basis of those terms and conditions of the contract then substituting new terms in the contract by the Arbitrator or by the Court would be erroneous or illegal. 13. It is equally well settled that the Arbitrator appointed by the parties is the final judge of the facts. The finding of facts recorded by him cannot be interfered with on the ground that the terms of the contract were not correctly interpreted by him. 14. We have gone through the facts of the case and perused the docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... negotiations was issued. In the said letter of intent dated 3.3.2007, it was specifically mentioned that the execution of work shall be on the terms of notice inviting tender (NIT) and other agreed discussions/negotiations subsequently held between the parties. Finally the Work Order was issued on 14.4.2007 in continuation with the letter of intent dated 3.3.2007. The relevant portion of the work order is extracted herein-below:- "WORK ORDER SUB:- Re-opening and operating of Sudra Mine & Mosaboni concentrator plant at Indian Copper Complex, Ghatsila Dear Sir, With reference to the above subject, Hindustan Copper Limited is please to issue work order to continuation with LOI dated 03- 03-2007 to re-commission, operate and maintain Surda Mine and Mosaboni concentrator plant to supply and deliver copper concentrate at rates Rs. 1,53,470.00 per ton of mental in concentrate (Excluding Royality) to Maubhandar work of Indian Copper Complex, produced from the operations of these units. This Work shall be governed by the terms and conditions of the Expressions of Interest of dated 21-09-2006, Notice Inviting Tender No. HC/HO/GM (M&S)/SUDRA dated 11-12-2006 and the other agreed during s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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