{"id":145206,"date":"2009-09-16T00:00:00","date_gmt":"2009-09-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/k-v-mohd-zakir-vs-regional-sports-centre-on-16-september-2009"},"modified":"2017-11-10T11:08:08","modified_gmt":"2017-11-10T05:38:08","slug":"k-v-mohd-zakir-vs-regional-sports-centre-on-16-september-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/k-v-mohd-zakir-vs-regional-sports-centre-on-16-september-2009","title":{"rendered":"K.V. Mohd. Zakir vs Regional Sports Centre on 16 September, 2009"},"content":{"rendered":"
Supreme Court of India<\/div>\n
K.V. Mohd. Zakir vs Regional Sports Centre on 16 September, 2009<\/div>\n
Author: ……………………..J.<\/div>\n
Bench: Markandey Katju, Asok Kumar Ganguly<\/div>\n
                                                                        R E P O R T A B L E\n\n                    IN THE SUPREME COURT OF INDIA\n\n                     CIVIL APPELLATE JURISDICTION\n\n                    CIVIL APPEAL NO. 2506 OF 2004\n\nK.V. MOHAMMED ZAKIR                                         .......APPELLANT(S)\n\n                                               Versus\n\nREGIONAL SPORTS CENTRE                                      .....RESPONDENT(S)\n\n\n\n                                  O R D E R\n<\/pre>\n
         Heard counsel for the parties.\n<\/p>\n<\/p>\n
2.       This appeal has been filed impugning the judgment of<\/p>\n
the    Division     Bench    of     the     Kerala         High    Court        dated<\/p>\n
13\/11\/2002 whereby the learned Judges of the High Court, on<\/p>\n
an    appeal   by    the    respondent         from    a    judgment       by    the<\/p>\n
Subordinate Judge, Ernakulam dated 1\/1\/1991, were pleased<\/p>\n
to disallow part of the claims which were granted in favour<\/p>\n
of the appellant by the arbitrator.                   The relevant facts of<\/p>\n
the case are as under.\n<\/p>\n<\/p>\n
3.       Tender     was    submitted      by    the     claimant     which        was<\/p>\n
accepted by the respondent.               An agreement dated 20\/11\/1986<\/p>\n
was executed.       In terms of the agreement, the work was to be<\/p>\n
completed within 12 months, i.e. within 19\/11\/1987.                              Work<\/p>\n
could not be completed by that             time       and    the   case of the<\/p>\n
                                                                       …….2.\n<\/p>\n
                                   – 2 –\n<\/p>\n
claimant-appellant        before   us    is     that    it   could    not    be<\/p>\n
completed on account of delay on the part of the respondent<\/p>\n
in the supply of cement and steel, and also the delay in<\/p>\n
making available the drawings and for various other factors.<\/p>\n
The    matter   was    referred    to    the    arbitration     of    a     Sole<\/p>\n
Arbitrator who was a retired Judge of Kerala High Court.<\/p>\n
4.       Claims and counter claims were raised before the<\/p>\n
arbitrator.         After examining the rival contentions, the<\/p>\n
arbitrator gave an award dated 16\/03\/1990 for an amount of<\/p>\n
Rs.19,51,334.25       with   interest      at    the    rate   of    10%     on<\/p>\n
Rs.18,86,700.23, the principal amount, from the date of<\/p>\n
award to the date of decree.            The claimant then applied for<\/p>\n
making the award into ‘rule of the Court’ and vide order<\/p>\n
dated    1\/1\/1991,    the    III   Additional     Sub-Judge,        Ernakulam<\/p>\n
passed an order making the award ‘rule of the Court’.<\/p>\n
5.       Challenging the same, an appeal was filed before the<\/p>\n
High Court by the respondent herein. In the said appeal,<\/p>\n
Division Bench of the High Court was pleased, inter alia,<\/p>\n
to    hold   that   the   claimant-appellant       is    not   entitled      to<\/p>\n
receive from the respondent an amount of Rs.3,63,344\/- as<\/p>\n
compensation for the loss caused to the appellant by way of<\/p>\n
gains prevented or loss of profit.              In other words it is a
\n…..3.\n<\/p>\n
                                   – 3 –\n<\/p>\n
loss of profit of 15% of the cost of work.                     Learned Judges<\/p>\n
held that it is difficult to accept the reasoning of the<\/p>\n
arbitrator in granting the aforesaid part of the award of<\/p>\n
the   arbitrator      and,    therefore,       the     learned    Judges       were<\/p>\n
pleased to set aside the award with regard to claim No.II.<\/p>\n
With the rest of the award, learned Judges, however, did<\/p>\n
not interfere.\n<\/p>\n<\/p>\n
6.      We have heard counsel for the parties and we have<\/p>\n
perused the award.          The award runs into considerable detail<\/p>\n
as it is a speaking award.          While dealing with this part of<\/p>\n
the claim, the arbitrator in paragraph 5.11, 5.12 and 5.13<\/p>\n
of the award has given detailed reasons.                       We are of the<\/p>\n
view that the settled position in law is that Court should<\/p>\n
not substitute its           own view        for the    view taken        by the<\/p>\n
arbitrator while dealing with the proceedings for setting<\/p>\n
aside   an   award.    It    is   equally      well     settled,       where   the<\/p>\n
arbitrator acts within jurisdiction, ‘the reasonableness of<\/p>\n
the   reasons’     given     by   the    arbitrator       is     not    open    to<\/p>\n
scrutiny by Courts.          However, if the reasons are such as no<\/p>\n
person of ordinary prudence can ever approve of them or if<\/p>\n
the reasons are so ‘outrageous in their defiance of logic’<\/p>\n
that they shock the conscience of the Court, then it is a<\/p>\n
different situation. And in             an    appropriate case the Court
\n……4.\n<\/p>\n
                                 – 4 –\n<\/p>\n
may interfere. However, the degree of such unreasonableness<\/p>\n
must     be   greater    than   the    standard         in   a   certiorari<\/p>\n
proceeding.     We find that the arbitrator in this case has<\/p>\n
reached a finding of fact on the materials on record about<\/p>\n
the delay on the part of the respondent and it has also<\/p>\n
been held by the arbitrator that because of such delay the<\/p>\n
claimant was put in great difficulty in completing the work<\/p>\n
in   time.     It   is   nobody’s     case    that      by   doing   so   the<\/p>\n
arbitrator has acted beyond his jurisdiction or committed<\/p>\n
any legal misconduct.\n<\/p>\n<\/p>\n
7.       We, therefore, see no reason to interfere with the<\/p>\n
award of the arbitrator.          We, accordingly, set aside the<\/p>\n
judgment of the High Court and uphold the award of the<\/p>\n
arbitrator.      Appeal    is   allowed      to   the   extent   indicated<\/p>\n
above.    No order as to costs.\n<\/p>\n<\/p>\n
                                       ……………………..J.\n<\/p>\n
                                        ( MARKANDEY KATJU )<\/p>\n
       New Delhi;                      ……………………..J.
\nSeptember 16, 2009.                    ( ASOK KUMAR GANGULY )<\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India K.V. Mohd. Zakir vs Regional Sports Centre on 16 September, 2009 Author: ……………………..J. Bench: Markandey Katju, Asok Kumar Ganguly R E P O R T A B L E IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 2506 OF 2004 K.V. MOHAMMED ZAKIR …….APPELLANT(S) Versus REGIONAL SPORTS […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-145206","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nK.V. Mohd. 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