9911796707
TMI Blog2001 (10) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... ly the entire material ordered from them. In addition to this claim for damages, interest on the said amount at 18% per annum for the period between May 9, 1989 to October 29, 1990 amounting to ₹ 18,62,571.55p was also made. Thus the total claim for damages and interest is in a sum of ₹ 88,91,143.16p. It is stated that the contract for supply of goods was cancelled by the petitioners on April 17, 1989 on the basis that the material which was not supplied by the respondents was procured by the petitioners from other suppliers at a price much higher than what was tendered by the respondents. The petitioners referred to various orders placed by them with different parties. The damages were thus claimed on the basis that the mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s providing for (i) that the contractor is liable to reimburse the purchaser the additional cost of similar equipment which the purchaser has purchased and (ii) that in addition to that or alternatively, the contractor is liable for liquidated damages for delay until such reasonable time as may be required for the supply of equipment and the provision regarding liquidated damages was not attracted in the present case. Clause 14(ii) was thus held to be a special provision with regard to quantum of damages and the quantum is to be determined with reference to the additional cost involved in purchasing the equipment which the contractor had failed to deliver; that in view of this special provision the mode of computation of damages provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to invoke the provisions of Section 73 of the Indian Contract Act and they had failed to prove that any additional purchases were made to make up for the short supply resulting from the breach of contract by the respondents and even otherwise, the petitioners had failed to prove that they had suffered any damages and were, therefore, not entitled to any damages. Accordingly, the claim made by the petitioners was dismissed. The minority view expressed by another arbitrator is that clause 14(ii) of the contract enables the purchaser the right to purchase upon such terms and manner as he may deem appropriate and that gives only an additional option without affecting the rights arising under general Law and, therefore, he was of the vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Single Judge took the view that an award can only be set aside if there is an error of fact or an error of law and unless such error is apparent on the face of the record, the objections cannot be sustained and, hence he overruled the objections holding that the award is unassailable in proceedings under Section 30 of the Arbitration Act. Appeals were filed against this order of the learned Single Judge on the Letters Patent side and a Division Bench of the High Court reiterated the view taken by the learned Single Judge after reappraisal of the facts, the award made by the arbitrators and the contentions raised in the appeals. It is against this order of the Division Bench, these special leave petitions are filed. Shri T.R. Andh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court in Union of India vs. A.L. Rallia Ram, AIR 1963 SC 1685, and Firm Madanlal Roshanlal Mahajan vs. Hukumchand Mills Ltd., Indore, 1967 (1) SCR 105, to the effect that the arbitrators award both on facts and law is final; that there is no appeal from his verdict; that the court cannot review his award and correct any mistake in his adjudication, unless the objection to the legality of the award is apparent on the face of it. In understanding what would be an error of law on the face of the award, the following observations in Champsey Bhara Company vs. Jivraj Balloo Spinning and Weaving Company Ltd., L.R. 50 I.A. 324, a decision of the Privy Council, are relevant:- An error in law on the face of the award means, in their Lords ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the law or the facts. In the light of this enunciation of law, we are of the view that unless the error of law sought to be pointed out by the learned counsel for the petitioners in the instant case is patent on the face of the award neither the High Court nor this Court can interfere with the award. The exercise to be done by examining clause 14(ii) of the contract entered into between the parties, construing the same properly and thereafter applying the law to it to come to a conclusion one way or the other, is too involved a process and it cannot be stated that such an error is apparent or patent on the face of the award. Whether under the context of the terms and conditions of a contract, a stipulation in the form and nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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