M/S C.M.I. Ltd. Versus Union of India

Madhya Pradesh High Court (Single Judge)

AA, 13 of 2017, Judgment Date: Dec 09, 2022

M/S C.M.I. Ltd. Versus Union of India

Law laid down - An Arbitral award can be set aside by the Court, if the Court finds that award is vitiated by the patent illegality and if the same is apparent on the face of it.

The learned Arbitrator and the trial court while rejecting the claim of the appellant, did not take into consideration Clause 702 of the IRS conditions. The loss ought to have been recovered from the subsequent contractor i.e. M/s. Sudarshan Telecom, Mumbai and not from the appellant, since the respondents have invoked the risk purchase clause on failure of the appellant to supply the material, therefore, the award is contrary to the terms and conditions of the agreement.