{"id":46988,"date":"2009-07-14T00:00:00","date_gmt":"2009-07-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-p-p-xavier-on-14-july-2009"},"modified":"2018-02-04T15:10:57","modified_gmt":"2018-02-04T09:40:57","slug":"union-of-india-vs-p-p-xavier-on-14-july-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-p-p-xavier-on-14-july-2009","title":{"rendered":"Union Of India vs P.P.Xavier on 14 July, 2009"},"content":{"rendered":"
Kerala High Court<\/div>\n
Union Of India vs P.P.Xavier on 14 July, 2009<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nArb.A.No. 8 of 2005()\n\n\n1. UNION OF INDIA, REPRESENTED BY\n                      ...  Petitioner\n2. CHIEF ENGINEER (CONSTRUCTION),\n\n                        Vs\n\n\n\n1. P.P.XAVIER,\n                       ...       Respondent\n\n                For Petitioner  :SRI.M.C.CHERIAN,SR.SC.,RAILWAYS\n\n                For Respondent  :SRI.S.RAMESH BABU\n\nThe Hon'ble MR. Justice PIUS C.KURIAKOSE\nThe Hon'ble MR. Justice P.Q.BARKATH ALI\n\n Dated :14\/07\/2009\n\n O R D E R\n     PIUS C. KURIAKOSE & P.Q. BARKATH ALI, JJ.\n      -------------------------------------------------------\n          Arb. Appeal Nos. 8 & 13 OF 2005 & Cross\n      Objection No. 72\/05 in Arb. Appeal No. 8 of 2005\n     --------------------------------------------------------\n           Dated this the 14th     day of July, 2009\n\n                        J U D G M E N T\n<\/pre>\n
Pius C.Kuriakose, J.\n<\/p>\n
     The Union of India represented by General Manager,<\/p>\n
Southern Railway and the Chief Engineer, Southern Railway<\/p>\n
are the appellants in Arbitration Appeal No. 8 of 2005. They<\/p>\n
are referred to hereinafter collectively as the railway. The<\/p>\n
respondent in the appeal is the railway contractor. He is<\/p>\n
referred hereinafter as the claimant.            There was an<\/p>\n
arbitration in respect of a contract work executed by the<\/p>\n
claimant for the railway.        The joint arbitrators passed<\/p>\n
annexure-I award granting an amount of Rs.7,35,000\/- to<\/p>\n
the claimant. Annexure -I award is a non-speaking award<\/p>\n
which was not challenged by the railway. Under annexure-I<\/p>\n
claim No. 7 which was a claim for interest has been<\/p>\n
declined. However, there is a direction in annexure – I that<\/p>\n
if the award amount is not paid within one month railway<\/p>\n
Arb. Nos. 8 & 13 of 2005
\n                               -2-<\/span><\/p>\n
would pay interest at the rate of 14% per annum to the<\/p>\n
claimant on the award amount. The appellant submits that<\/p>\n
the entire amount due under the award was paid to the<\/p>\n
claimant who has issued a no claim certificate to the<\/p>\n
railway. The appellant submits that thereafter the railway<\/p>\n
issued notice of annexure – II petition filed by the claimant<\/p>\n
(O.P. No. 22 of 1994) before the Sub Court, Ernakulam. To<\/p>\n
annexure – II, the railway filed annexure -III objections<\/p>\n
before the Sub Court.       By Annexure – III the territorial<\/p>\n
jurisdiction, maintainability etc. of the petition was seriously<\/p>\n
challenged. On merits also the claims in the petition were<\/p>\n
disputed. The joint arbitrators who were impleaded as R3<\/p>\n
and R4 in annexure – II remained ex parte. The Sub Court<\/p>\n
passed an order directing the arbitrators to file the award in<\/p>\n
court. Along with annexure – II which was Arb. O.P. No. 22<\/p>\n
of 1994 the claimants filed Arb. O.P. No. 21 of 1994 in<\/p>\n
respect of another work and arbitration award passed by the<\/p>\n
Arb. Nos. 8 & 13 of 2005
\n                              -3-<\/span><\/p>\n
same arbitrators in relation to that work. Appellant submits<\/p>\n
that the position and stage of O.P. No. 21 of 1994 is the<\/p>\n
same as that of Arbitration O.P. No. 22 of 1994.       While<\/p>\n
matters stood so, the claimant filed a common petition in<\/p>\n
the two arbitration O.Ps. which was numbered as           IA.<\/p>\n
719\/03. Annexure -IV is copy of that IA. The prayer in<\/p>\n
annexure – IV was that the Sub Court may act on the basis<\/p>\n
of the signed copy of the award available in court and pass<\/p>\n
orders invoking sections 13, 15, 16, 30 and 33 of the<\/p>\n
Arbitration Act. Thus, though the scope of Arb. O.P. No.<\/p>\n
22\/94 was under section 14 of Arbitration Act, 1940, the<\/p>\n
prayer in the interlocutory application annexure- IV was to<\/p>\n
take a decision invoking sections 13, 15, 16, 30 and 33 also.<\/p>\n
By a common order dated 11-8-2004 annexure – IV IA was<\/p>\n
allowed by the Sub Court modifying the portion of the award<\/p>\n
relating to interest prior to passage of the award.<\/p>\n
Appellants submit that by the said order the Sub Court has<\/p>\n
Arb. Nos. 8 & 13 of 2005
\n                               -4-<\/span><\/p>\n
granted interest at the rate of 14% per annum to the<\/p>\n
claimant during the period 30-9-90 to 13-4-1994 which will<\/p>\n
amount to Rs.3,64,684\/-. According to the appellants, the<\/p>\n
above order amounts to modification of the award passed by<\/p>\n
the joint arbitrators to the extent the same pertains to claim<\/p>\n
No. 7 which was specifically declined by the joint arbitrators.<\/p>\n
It is challenging the legality and propriety    of the above<\/p>\n
order that the appellants have preferred Arb. Appeal No.<\/p>\n
8\/05.\n<\/p>\n
      2. Arb. Appeal No. 13\/05 is also directed against the<\/p>\n
very same order in so far as it pertains to Arb. O.P. No.<\/p>\n
21\/94. It is submitted that the order amounts to<\/p>\n
modification of the award of the joint arbitrators, copy of<\/p>\n
which is produced as annexure – I in Arb. Appeal No. 13\/05.<\/p>\n
By virtue of the modification an additional amount of<\/p>\n
Rs.6,44,199\/- has become payable by the railway and in<\/p>\n
both Arb. Appeal Nos. 8\/05 and 13\/05 the appellants have<\/p>\n
Arb. Nos. 8 & 13 of 2005
\n                               -5-<\/span><\/p>\n
raised various grounds challenging the order of the Sub<\/p>\n
Court in the above IA.\n<\/p>\n
      3. Cross Objection No. 72 of 2005 is filed by the<\/p>\n
claimant in Arb. Appeal No. 8\/05 and the ground urged<\/p>\n
therein is that claim No.7 raised by the claimant before the<\/p>\n
arbitrators in both the arbitrations should have been upheld.<\/p>\n
It is contended therein that the trial court having rightly<\/p>\n
held that claim No. 7 is liable to be allowed, interest should<\/p>\n
have been awarded during the period of one month from the<\/p>\n
date of the award till date of actual payment, i.e., from 18-<\/p>\n
3-1994 till date of payment. To the memorandum of cross<\/p>\n
objection, objection is filed by the railway contending that<\/p>\n
the cross objection is not maintainable since the same does<\/p>\n
not fit in under any of the provisions of Section 39 of the<\/p>\n
Arbitration Act or rule 22 of Order 41 C.P.C.<\/p>\n
      4.    Sri.M.C.Cherian, learned counsel for the railways<\/p>\n
and Mr. Sukumar, representing learned counsel for the<\/p>\n
Arb. Nos. 8 & 13 of 2005
\n                             -6-<\/span><\/p>\n
claimant addressed us very extensively on the grounds<\/p>\n
raised in the memorandum of appeal and memorandum of<\/p>\n
cross objections respectively. Our attention was drawn by<\/p>\n
the learned counsel to the relevant statutory provisions, viz.<\/p>\n
Sections 13, 14, 15, 16, 30 and 33 of Arbitration Act, 1940.<\/p>\n
Our attention was drawn also to various judicial precedents<\/p>\n
including the judgment of the Supreme Court in T.P. George<\/p>\n
v. State of Kerala, AIR<\/a> 2001 SC 816 and the judgment in<\/p>\n
G.C.Roy’s case.\n<\/p>\n
      5. Having anxiously considered the rival submissions<\/p>\n
addressed at the Bar in the light of the relevant statutory<\/p>\n
provisions and judicial precedents to which our attention<\/p>\n
was drawn by the learned counsel we are of the view that<\/p>\n
the impugned order passed by the learned Subordinate<\/p>\n
Judge can be sustained.     Section 15(c) of Arbitration Act<\/p>\n
1940 enables the court to modify and correct any award<\/p>\n
“where the award contains a clerical mistake or an error<\/p>\n
Arb. Nos. 8 & 13 of 2005
\n                                   -7-<\/span><\/p>\n
arising from an accidental slip or omission.” In the instant<\/p>\n
case the amount which has been awarded under the<\/p>\n
impugned order is only pendente lite interest and the<\/p>\n
interest during the period from the date of accrual of cause<\/p>\n
of action till the date of initiation of the proceedings for<\/p>\n
arbitration. The court below noticed the four stages during<\/p>\n
which the claimant is entitled for interest in terms of<\/p>\n
judgment of Supreme Court and has awarded interest<\/p>\n
during the period from the date of accrual of cause of action<\/p>\n
till the date of the award. It is seen from the impugned<\/p>\n
order that there was no serious opposition raised before the<\/p>\n
Sub Court in awarding interest for the above period from<\/p>\n
30-9-1990 till 13-4-1994.          According to us, by awarding<\/p>\n
interest for the said period also the court below has only<\/p>\n
exercised its powers under section 15(c) of the Arbitration<\/p>\n
Act, 1940.        Though it would appear as if there is some<\/p>\n
impropriety         in rectifying the award on the basis of an<\/p>\n
Arb. Nos. 8 & 13 of 2005
\n                               -8-<\/span><\/p>\n
interlocutory application filed in an original petition wherein<\/p>\n
only provision of Section 14 had been invoked, we feel that<\/p>\n
the action of the learned Sub Judge can be approved since<\/p>\n
the result of the same is to render substantial justice to the<\/p>\n
claimant who would have otherwise lost these amounts<\/p>\n
which he was obliged to pay to his bankers towards interest<\/p>\n
on the loans advanced by them. Moreover, we notice that<\/p>\n
the railway did not have serious opposition to this before the<\/p>\n
Sub Court.\n<\/p>\n
      5. At the same time, we are not inclined to uphold the<\/p>\n
memorandum of cross objections.          If the claimant was<\/p>\n
genuinely aggrieved in that claim No.7 raised by him was<\/p>\n
not adjudicated his remedy was to invoke section 14 of<\/p>\n
Arbitration Act, 1940, the only provision which was invoked<\/p>\n
by him in the main petitions filed by him. We would have<\/p>\n
thought in terms of relegating the issue for adjudicating<\/p>\n
claim No. 7 to the same arbitrators. We are informed by<\/p>\n
Arb. Nos. 8 & 13 of 2005
\n                                 -9-<\/span><\/p>\n
both sides that at this distance of time it will become<\/p>\n
necessary to constitute a fresh arbitration trial. Under the<\/p>\n
above circumstance we are of the view that the appeals as<\/p>\n
well as the memorandum of cross objections can be<\/p>\n
dismissed.          Accordingly the appeals as well as the<\/p>\n
memorandum of cross objections are dismissed, but in the<\/p>\n
circumstances parties are directed to suffer their respective<\/p>\n
costs.\n<\/p>\n<\/p>\n
                              (PIUS C.KURIAKOSE, JUDGE)<\/p>\n
                              (P.Q.BARKATH ALI, JUDGE)
\nksv\/-<\/p>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court Union Of India vs P.P.Xavier on 14 July, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM Arb.A.No. 8 of 2005() 1. UNION OF INDIA, REPRESENTED BY … Petitioner 2. CHIEF ENGINEER (CONSTRUCTION), Vs 1. P.P.XAVIER, … Respondent For Petitioner :SRI.M.C.CHERIAN,SR.SC.,RAILWAYS For Respondent :SRI.S.RAMESH BABU The Hon’ble MR. Justice PIUS C.KURIAKOSE The […]<\/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":[8,21],"tags":[],"class_list":["post-46988","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nUnion Of India vs P.P.Xavier on 14 July, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-p-p-xavier-on-14-july-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Union Of India vs P.P.Xavier on 14 July, 2009 - 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